Step into the vibrant world of Irish businesses and get ready to uncover the unique stories, triumphs, and hurdles that shape their journey. In this feature, we’ll delve into the incredible journey of Intercom. Under Eoghan McCabe’s leadership, it has emerged as a major player in the industry. Let’s explore their fascinating story.
“Going all in” is defined as:
“To try with great determination to achieve something, especially when this involves taking a big risk, by doing all of the things that can be done.”
The Collins Dictionary
If you’ve been following Irish insights recent coverage of Irish tech, you’ve likely noticed Intercom’s regular presence.
From podcasts and blogs to news channels and summits, they’ve launched a comprehensive campaign alongside a cheeky ad blitz. It’s centred around Fin, their groundbreaking AI chatbot that effortlessly answers customer support questions.
Have you noticed this on your feeds?
Their message couldn’t be clearer: Intercom is all-in on this AI-led strategy.
On the 20VC podcast, Co-founder Des Traynor claimed customers are reporting up to 50% of support queries are handled by Fin without human intervention. A bold claim indeed.
If successfully scaled, this puts them in direct competition with customer service juggernaut Zendesk, whom they’ve publicly identified as their main competitor. A risky move given Zendesk’s achievements in this space.
Intercom’s recent impressive marketing campaign has inspired me to delve deeper into their story to:
- Explore the origins of their success 🌱
- Understand Intercom’s approach to scaling and adapting 🚀
- Investigate how they’ve gotten match-fit for AI 🎯
- Assess the chances of their risky all-in strategy 🔮
So buckle up for a tale that’s gripping enough for the big screen. 🍿
🌱 Early Intercom
2011:
- Driven by a vision to revolutionise customer communication, Eoghan McCabe, Des Traynor, Ciaran Lee, and David Barrett found Intercom in Dublin.
- Operating out of the vibrant 3FE coffee shop in Dublin, they began crafting the platform prototype.
- Following early traction in the States, where most of their target customers resided, the team decided to relocate to San Francisco.
- Like many young Irish entrepreneurs venturing abroad, they faced the uncertainties of a new environment and a competitive market.
“I was pretty honest about the fact that we didn’t know what we were doing, the Irish tend to under sell.”
McCabe Speaking to Forbes in 2016
- Intercom’s original growth strategy focused on publishing content for software founders. They have an impressive company blog, the first 95 entries of which were penned by Des Traynor himself. This content investment worked, proven by the fact that 10,000 of top global startups and over 500 YC companies that use customer support software chose Intercom. Solid strategy execution.
2012-18:
- To condense the rapid growth period of Intercom, here are key milestones:
- Closed a $1.75 million seed round in 2012.
- Surpassed 10,000 customers and secured $35 million in Series C funding in 2015.
- However, McCabe acknowledged in a 2023 interview with The Currency (detailed later) that Intercom had become “too horizontal” during this period, serving too broad a range of companies.
🚀 Time to Scale
March 2018:
- Intercom made history by becoming Ireland’s first homegrown unicorn. This remarkable achievement was fueled by a $125 million Series D funding round, valuing the company at a whopping $1.275 billion and attracting Jack Dorsey and Mark Zuckerberg as investors.
- Interestingly, Intercom was calling Salesforce out as their main competition at the time, illustrating their mistake of not “picking a lane” during the 2012-2018 period.
Intercom is the “next-generation customer database that’s specifically built for internet businesses,” co-founder and CEO Eoghan McCabe said in an interview with TechCrunch. “Salesforce is not built for internet businesses.”
techcrunch.com
May 2019:
- A story breaks alleging misconduct by the CEO.
“I was naive… I was 26 when I started this company. But it was thoroughly investigated, first by HR and then the board and then outside lawyers, who determined no action against me and voted unanimously to support me”.
Eoghan McCabe
June 2020:
- McCabe stepped down as CEO and remained as Chairman of the Board. An autoimmune disorder which was eventually diagnosed was a big factor in forcing him to give up his job as CEO.
- Intercom continues its impressive growth under new CEO Karen Peacock. Revenues doubled from $100 million to $200 million during this period and they added tech giants Atlassian, Amazon and Lyft as customers.
“I’ve known I wanted to move to the Chairman role at Intercom eventually and when I hired Karen 3 years ago I told her this plan.”
Eoghan McCabe speaking to rte.ie
🎯 Getting Matchfit for AI
October 2022:
- McCabe returned as CEO at the request of the board in 2020, announcing plans to make Intercom ‘super aggressive’ in its battle to dominate the customer service sector:
“I could never really stray too far from the company”.. “Intercom was a vehicle to express and prove myself, and I continued to care about it.”
Eoghan McCabe
- Shortly after the company cut 124 jobs from its staff worldwide, equating to almost 13 per cent, and blamed the cuts because they grew its workforce too quickly.
March 2023
- Fin officially launches! The groundbreaking AI chatbot leverages the power of cutting-edge large language models (LLMs) like OpenAI’s GPT-4 and Intercom’s own proprietary technology.
We’re going to change all of that through our next-generation platform. AI will be at the centre.We will do not just reactive but also proactive support, with not just bots but also humans.”
Eoghan McCabe
- At this point, Intercom has put all of its chips on the table and pushed all in. Marketing and branding efforts focus heavily on this feature.
October 2023
- Zendesk, be warned! Intercom is “restarting the start-up.” For the most insightful analysis of the CEO and the business, check out Tom Lyons’s article – a must-read!
- In a candid interview, McCabe, looking revitalised and brimming with energy, details his plan to restore Intercom’s startup agility.
- His top priority since returning has been refocusing the company, acknowledging that “both the business and the culture had grown a bit too comfortable.”
- McCabe emphasises a laser focus on Intercom’s target market, shifting from “doing a lot of things” to specialising in customer service. This marks a significant departure from their 2018 stance of directly challenging the enterprise giant Salesforce.
- When quizzed about staff “unrest” and recent executive departures McCabe is frank. “Some people signed up for a different organisation, a company that was on its way to a nice IPO, They didn’t want a high-energy, high-intensity startup”.
- Throughout the interview, McCabe confidently sets his sights on their main competitor, Zendesk:
“We’re seeing a lot of people leaving Zendesk for Intercom specifically for our AI stuff. But there’s just such a giant pie that we can all be very successful”.
Eoghan McCabe
- But what resonated even more than the interview itself was the enthusiastic response from Intercom’s team and board members. Their eagerness to share the article and their visible excitement about McCabe’s leadership demonstrate the newfound energy and enthusiasm he has instilled at the company:
2023
- 2023 has witnessed an unparalleled marketing campaign spearheaded by Intercom’s senior leadership team.
- What truly stands out in this campaign is its remarkable reach, diversity, and high quality. It has successfully permeated the most prominent channels in global tech, ensuring a significant impact. See for yourself:
- Des Traynor: How to Survive and Thrive in a World of OpenAI
- Lenny’s Podcast: What AI means for your product strategy with Paul Adams, CPO at Intercom
- More examples of their simplistic marketing making people take notice:
Been getting these @intercom ads on LinkedIn for the last 2 weeks.
— Stefan Wirth (@NafetsWirth) December 3, 2023
No idea what’s going on but it does a good job at making me pay attention haha.
If it drives bottom line? Only their analytics will tell that story. pic.twitter.com/0AKEKm9cop
- Just last week, dozens of Intercom’s employees posted a massive feature announcement update focusing on…. you guessed it Zendesk:
The only time I like being wrong is when I think a challenge at @intercom may be insurmountable, and then someone figures out how to do it anyway.
— Eoghan McCabe (@eoghan) November 29, 2023
One year ago I said we'd take on Zendesk. Our plan is to become the leading customer service platform. One GIANT head start they had… pic.twitter.com/tC2ONOzKsL
The Future of Intercom 🔮
Intercom’s current trajectory and focus make them appear incredibly ‘match fit’ for success. From the outside looking in, their executive team displays a level of cohesion rarely seen in tech companies of a similar size.
The leadership and company publicly and authentically stand behind their CEO at every opportunity. They have learned from and owned past mistakes and are now leveraging those lessons to propel themselves to the next level.
These positive signs, coupled with clear customer messaging, a laser-focused target market, and vulnerable incumbents recently acquired by private equity, bode well for Intercom’s all-in gamble on Fin.
Irish inisghts wouldn’t be a true Irish tech blog without rooting for an Irish underdog story abroad, which is why we eagerly await Intercom’s successes in the years to come. 🤞🏽
Stay tuned…