How Chat Interface Boosts Customer Retention in Mobile Apps

We live in the day where application existence means business. While applications in the past help businesses in getting customers, that’s not the case anymore. Nowadays, we can get customers even with growth hacking. Growth hacking is mostly found in start-ups and, is an attracting way to gain growth in revenue. For early start-ups, “growth” is most important a, they will try to find the most effective tactic to expand.

Growth hackers persons in charge of ensuring revenue increase, need to use their knowledge of product and distribution to discover innovative, technology-based, avenues for growth to reach their target. Or even exceed what is demanded. One example of the use of a succesfull method of growth hacking is AirBNB. They used Craiglist, a platform with millions of users finding accommodations, to increase their user base substantially by creating a joint-link with Craigslist. In this way, both AirBNB and Craigslist both showed up when customers are filling out an application for obtaining accommodation.

Since getting customers now may be easier for most businesses, the more painful problem is getting customer retention. This refers to actions and activities taken by businesses that hold customers through loyalty and brand initiatives to decrease the amount of customer defections. Simply put, retaining customer retention is beneficial for businesses since it shows how reliable businesses are especially in their customer service.

89% of businesses find customer experience as a crucial factor in driving loyalty and retention. According to studies done by Bain&co, increasing customer retention by 5% can lead to an increase in profits of 25% – 95%, and the likelihood of selling to an existing customer is 60% – 70%, while the probability of selling to a new lead is 5% – 20%, at most.

Why is Customer Retention So?

Retaining customers can have a crucial impact on businesses. According to Josh Chapman, a finance expert at the renowned freelancer portal Toptal, we are likely to see the outcome of retaining customers in the first 12-24 month period of ? In a recent report by Sailthru, a marketing portal, was said that “Retailers and publishers that increased their spending on retention in the last 1-3 years had a near 200% higher likelihood of increasing their market share in the last year over those spending more on acquisition [of new customers].”


Also read: “Overflowing Advantages of Using Telemedicine in Southeast Asia


Reviewed from here, Josh Chapman, financial expert at Toptal tells us three why we should focus on customer retention:

  • Focusing on retention, decreases churn.

Customer churn rate is an indicator that measures the percentage of customers. Who end their relationship with a company in a particular period. In the other words, it means a customer lost.

  • Loyal customers spend more per transaction.

From a study conducted by Echo for American Express. It was found that two thirds of customers believe in companies that have excellent customer service. And thus, willing to spend more dollars.

  • Loyal customers spend way more over their lifetime as a customer.

As consumers become more loyal, they will become attached to your service and their frequency of buying will increase. When it happens, this has to do with customer lifetime value. That implies the total value of a customer throughout their lifetime with your company. When customer retention impacts in decreasing of churn,; in contradiction with churn, customer lifetime value will be greater.

How do we manage customer retention?

Since retaining customers means we have to make consumers engaged, here are some highlights you can pay attention to in crafting your retention strategy:

  • Send your users targeted messages.

If you have already briefed your users about your application’s features. Send them  relevant messages about what they might prefer to see, once they have accepted them. That makes users attracted to go back to the app.

  • Re-market to users, especially those who don’t want to accept targeted messages.

Re-marketing tactics can be used by analysing data that you have obtained from consumers activities. Especially for those who chose to opt out from getting  notification messages. Send them an email about your suggestions everytime it’s been awhile since the last time they opened your app.

  • Build social interactions with native chat.

Make a conversation by leveraging a chat API that can create social interactions within your app. Even when your app is not a social application. Having said, with chat, you can give consumers a glimpse of socialising within your app environment.

Use Qiscus SDK to Create a Social Vibe

For those who have been struggling to increase customer retention. Building a messaging base within your app might be a solution for you. When it is scientifically proven that messaging creates great customer satisfaction, generating a chat system within your application will boost your customer retention. This is a great news as, in Qiscus SDK we accommodate to services you need to power upyour app with chats. For further details, drop us a note at or e-mail us [email protected] and explore the potential of your app with us.


You May Also Like