Customer retention according to Hubspot is a company’s ability, usually expressed in percentage terms, to retain its customers over a particular period of time. It is an important measurement, because it demonstrates not only the success of acquiring new customers, but also how the product, service and the company can satisfy them all over the customer lifecycle.

Price for the new customer acquisition might be 25 times higher than retention. This number might vary depending on the industry, but it is not hard to believe this fact is true considering all the time and resources that the company’s employees spend on getting new customers on board. Moreover, research done by Frederick Reichheld, inventor of the net promoter score, states that just a 5% increase in customer retention could generate a 25% increase in profit for the company!

When companies started to use chatbot marketing to communicate with their customers, it soon became apparent that chatbots are perfect for customer retention. Here are five reasons for this statement.

Communicate in a 24-Hour Window from the Last Conversation

The 24-hour window is crucial to reengaging with customers. They still remember where they have been and what they have been looking for. Chatbots are the easiest tool for them to start a conversation with the company which they usually do.

If they have done this via the Facebook Messenger chatbot integrated into the company’s website, information about the customer is kept for 24 hours. This allows the company to automatically reengage conversation at any time. Of course, the customer expects an instant reaction, but a conversation can be interrupted on both ends. In this case, it is possible for the company to take over the conversation from the point where both sides left it. And it does not matter if the customer started to talk while on mobile or a desktop device. It will be possible to reach him or her via the Messenger chatbot.

One more reason to use Facebook Messenger chatbot – if the conversation has ended and the 24 hour window has expired, it will still be possible to reach a customer with a “one time notification” feature if the customer authorises this. And if the customer responds to this repeatedly initiated conversation, the company will again have a 24-hour window to communicate.

Upsell and Ask for Confirmation

Our experience at Typbot shows that chatbots will also work perfectly fine if the purpose is upselling. During conversation with the customer, the Messenger chatbot helps to find out significant details, intentions, and even previous purchase history. Thus, it is possible to draw conclusions about what else the customer might be interested in. For example, if the customer is a user of movie streaming service with a basic membership level, it is possible to offer an upgrade.

The Messenger bot can be used for transactional messaging. These are individual messages to the user from the website to confirm the information the customer is interested in. For example, if the purchase has been made on the website, the seller can send confirmation details via the Messenger chatbot. At that moment, the chatbot already knows what exactly this customer has bought, so it is easy to offer additional products or services.

Reach Your Customers on Facebook

Companies with significant customer base can use Facebook for targeting or retargeting their customers. If the list with customer phone numbers or e-mail addresses is uploaded on Facebook, platform will generate customer segments according to this data.

Customer list can even be segmented before uploading on Facebook to create more precise segments. Afterwards it is possible to approach those customer segments created through the Messenger chatbot. Individualized offers according to their previous interest can be generated and showed. This is a great opportunity to reactivate sleeping customers as well as upsell, cross-sell or just notify them!

Keep All Communication in One Place

Even if you have chosen the Messenger chatbot as the most convenient channel to use for communication with your customers, do not forget other channels. However, it is worth keeping all information in one place.

Considering all the advantages of the chatbot, you can always refer to it in online, as well as offline communication. Facebook has made it easy, so it is convenient to use the Facebook Messenger chatbot:

• Integrate the link to the chatbot in SMS messages, e-mails, mobile apps, QR codes, etc. Remember that QR codes can also be placed on printed and other offline media. The customer will scan it and will be able to open the Messenger app with the specific communication flow detected by you.
• Use “m.me” links – shortened URL service operated by Facebook that redirects users to the chatbot in Messenger.
• Facebook Messenger makes it possible to indicate the “ref” or referral parameter on its API. This parameter can be used in two ways:
  • The first one might signal that the customer meets specific parameters. For example, if there is a specific link shared with the customer because of previous interactions with the product or purchase history, the company can predict future interest and send a specific link to a certain part of the conversation in the chatbot that refers to this interest.
  • The other way to use referrals is to generate a link that will show where the customer came from and where he found a link to the company. Typbot will show this information in the report about chatbot usage.

Login through the Chatbot

Account linking is the safe Facebook Messenger feature used by chatbots. The customer does not have to log in to dashboard to use the company’s services. There is no need to enter any data at all as contact information and personal data are already there. The customer is recognized after entering the username and password directly into the chatbot. This will be the permission to access the database.

This creates an opportunity for businesses to provide the customer with the most suitable information in just a few clicks. And it is easy for the customer to apply for the new service as there is no need to re-enter any personal data once it is already in the system. Once again, the perfect tool for upselling and cross-selling!

Customer retention is important for the business. On one hand, it shows that customers are satisfied and are willing to come back. On the other, repeated sales are the cheapest. Some reengagement activities are even free! Chatbots can cover all steps of the customer lifecycle so it is never too late to try. Sign up for a Typbot free trial!