What is Customer Stickiness, and How to Improve it to Benefit Your Business?

By Eva
April 20, 2023
What is Customer Stickiness, and How to Improve it to Benefit Your Business?

In this article, we'll explore eight ways that incorporate customer stickiness into your business practices and ultimately benefit your business.

As customer service managers, customer support representatives, and customer success specialists, one of the most important tasks you can focus on is customer stickiness. But what exactly is customer stickiness, and how can it benefit your business?

Customer stickiness is a term used to describe how likely customers are to remain loyal to a business. Improving customer stickiness can result in increased sales, improved customer loyalty, and higher profits.

In this article, we'll explore what customer stickiness is and discuss practical tips for improving customer stickiness to ultimately benefit your business.

What is Customer Stickiness?

Customer stickiness is the measure of how engaged customers are with your business and how likely they are to remain loyal. It is an important metric because it can help you identify potential opportunities to improve customer retention and loyalty. Stickiness is determined by how much customers interact with your product offering, how frequently they use it, and their overall satisfaction with the experience.

The customer journey is key to understanding stickiness; it refers to the entire journey from when a customer first discovers your product or service, through to when they become a loyal, repeat customer.

During the customer journey, businesses should be measuring customer engagement and making changes based on user feedback to improve the overall experience. This can include providing regular product updates, refining existing features, and creating new features that customers will find useful.

By understanding and improving customer stickiness, businesses can create more successful customer experiences that keep customers coming back and create lasting loyalty.

Differences Between Customer Stickiness and Customer Retention

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When it comes to the customer journey, there are two terms that often get confused - customer stickiness and customer retention. These two concepts have a few similarities but also have some major differences.

Customer retention is about getting customers to come back for more purchases. It's about getting customers to keep coming back to your business and to keep buying more from you. To achieve this, businesses need to focus on providing quality products and services, offering excellent customer service, and regularly updating their product offerings.

On the other hand, customer stickiness is all about creating loyal customers who will stick around and keep coming back regardless of changes in the market or product offering. It's about creating a long-term connection between the customer and your business, rather than focusing on short-term gains. To achieve this, businesses should focus on building trust and loyalty with customers by listening to user feedback, staying connected with customers through social media, and providing value beyond just the product.

In summary, customer retention is all about getting customers to purchase more from your business in the short term, while customer stickiness is all about building loyalty and trust with customers in the long term. Both strategies can be beneficial for businesses, but they require different approaches.

Differences Between Customer Stickiness and Customer Loyalty

Customer stickiness and customer loyalty are two different concepts, though both involve customers’ willingness to engage with a business. Customer stickiness focuses on how long a customer stays engaged with a business, while customer loyalty is a measure of how much customers want to continue engaging with a business.

Customer stickiness is about how long customers continue engaging with a business. It is the length of time that customers spend interacting with the company, such as browsing its website or using its products. It is also an indication of how well the company is engaging with its customers by providing them with a valuable product or service that meets their needs and keeps them coming back.

Customer retention is the process of making sure that customers remain loyal to the company. This means providing customers with a good experience and ensuring they are satisfied with the products and services they receive. Companies can achieve this by monitoring customer feedback, improving customer service, and providing regular product updates.

Customer loyalty is a measure of how much customers want to stay engaged with a business. It indicates how likely customers are to purchase from the same company again and refer it to others. Companies can build customer loyalty by creating a positive user experience, providing personalized product offerings, and offering incentives for returning customers.

Customer stickiness and customer loyalty are two different concepts. Customer stickiness focuses on how long customers stay engaged with a business, while customer loyalty is a measure of how much customers want to stay engaged with a business. Companies should strive to improve both customer stickiness and customer loyalty in order to benefit their business.

Why is Customer Stickiness Important?

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Customer stickiness is an important metric for any business, because it represents the amount of engagement and loyalty customers have with your products or services. It's a key indicator of customer satisfaction and success. Knowing how to improve customer stickiness can be beneficial to your business in many ways.

Increasing customer stickiness leads to better customer retention, increased sales, improved customer loyalty and brand recognition, and higher levels of customer satisfaction. It also helps businesses gain insights into their customer journey, which can then be used to create better products and services.

Achieving customer stickiness means customers are more likely to purchase from you repeatedly, recommend your product or service to others, provide positive feedback, and stay loyal to your brand. All of these benefits result in more revenue for your business over time.

It is also important for businesses to understand that customer stickiness does not just happen on its own; it must be actively pursued through various strategies. This includes offering high quality products or services, providing regular product updates and user feedback, and responding quickly to customer needs. All of these initiatives are important for improving customer stickiness and ensuring customers remain engaged with your product or service.

How to Improve Customer Stickiness

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Businesses should focus on building relationships with their customers in order to increase customer stickiness and maximize loyalty as it can help them in a number of ways. Here are a few ways in which they can do it.

1. Have a first-class onboarding experience

Your customer’s onboarding experience can be the first impression they get of your product, and it can make or break their opinion of it. A first-class onboarding experience should help customers understand and engage with your product quickly and effectively, leading to increased customer stickiness.

The onboarding experience should be tailored to the individual customer, as each customer may have different expectations of what they need to do in order to start using your product. Make sure that you understand the customer journey in order to provide an effective onboarding experience.

When developing your onboarding experience, focus on key elements such as a clear explanation of your product offering, the ability for customers to explore and ask questions, and regular product updates to ensure that customers are kept informed. You should also encourage customer feedback at each stage of the onboarding process, as this will help you to identify areas for improvement and create a more user-friendly experience.

By providing a first-class onboarding experience, you can increase customer stickiness and improve customer retention. An effective onboarding experience will ensure that customers understand the value of your product and feel comfortable using it. This will ultimately lead to increased customer satisfaction, loyalty, and conversion rates.

2. Enroll new customers into your customer marketing funnel

Enrolling new customers into a customer marketing funnel is a great way to improve customer stickiness. By doing so, you will be able to ensure that customers are engaged throughout the entire customer journey.

Post-sale drip campaigns

Post-sale drip campaigns are an effective way to keep customers engaged and informed of your product offering. These campaigns can include emails, text messages, or even direct mail that provide customers with product updates, discounts, or special offers. This will help to build customer loyalty, as they will begin to recognize your brand as one that provides great value.

Unique deals and discounts

Unique deals and discounts are also a great way to incentivize customers to stay loyal to your brand. When customers feel like they’re getting something special from you, it helps to strengthen their connection to your brand. Additionally, it shows that you value their continued patronage and makes them more likely to stay with your business.

By implementing these strategies, you can improve customer stickiness and create an engaging and loyal customer base for your business. This will lead to more repeat customers, higher customer satisfaction, and ultimately increased revenue.

3. Build a recurring subscription into your products and services

Customer stickiness refers to how long a customer interacts with your business. It's more than just customer retention; it is about how well your customers respond to your product offering and keep coming back for more. To increase customer stickiness, you need to build a recurring subscription into your products and services.

A recurring subscription offers customers access to your product or service on an ongoing basis. Customers can purchase a monthly or annual plan that allows them to benefit from your offering. It ensures that they receive regular product updates, notifications, and special offers which encourages them to keep using your products or services.

By building a recurring subscription into your products and services, you can improve customer stickiness, increase customer loyalty, and drive more revenue for your business. With improved customer stickiness, you can create a better customer journey that leads to increased customer retention.

4. Make it as easy as possible for customers to engage with you

Regular communication with customers helps in improving customer stickiness. You can send them emails with user feedback surveys to get their opinion on the product and services. This helps you understand what customers are looking for and also helps you improve your product or service accordingly.

You should also look for ways to keep customers engaged by creating new experiences. Offering discounts or adding new features to existing products can help increase customer stickiness and drive them towards becoming more loyal customers.

Finally, it’s important to take user feedback seriously. Make sure that you are responding to customer complaints and suggestions in a timely manner. Showing that you are listening to and taking customer feedback into account is a great way to build trust with your customers.

5. Benefits for Increasing Customer Stickiness

It is essential for businesses to be able to measure customer stickiness in order to better understand customer behavior and maximize customer lifetime value. Increasing customer stickiness can provide numerous benefits for businesses, some of which are mentioned below.

Reduce churn

Increasing customer stickiness is an important strategy to reduce churn and foster long-term customer loyalty. It is a process of providing customers with exceptional experiences and value that encourages them to stay with your company over the long-term. When customers are engaged and satisfied with their experience, they are less likely to move on to other companies.

By increasing customer stickiness, businesses can maximize customer retention and satisfaction, resulting in lower churn rates.

There are several ways to increase customer stickiness, such as offering loyalty rewards, discounts, exclusive offers, and personalized experiences. Additionally, companies can also build trust and strengthen relationships by providing timely customer support and feedback.

Ultimately, businesses must find the right balance between providing enough value for customers to stay without being too intrusive or causing frustration. This helps ensure customers are kept happy and engaged, which reduces churn rates.

Customer stickiness is an important indicator of customer engagement and can have a huge impact on reducing churn. When customers are sticky, they will remain loyal to your business and continue to use your products or services over time.

Reduce acquisition cost

Increasing customer stickiness is a great way to reduce acquisition cost for your business.

By creating an engaging customer journey, businesses can provide a valuable customer experience that leads to higher customer retention and loyalty. Additionally, investing in product offerings and providing regular product updates based on user feedback will ensure customers stay engaged and continue to use your products and services over time.

When customers are engaged and loyal to your business, they will recommend your products and services to others, resulting in lower customer acquisition costs.

Companies should focus on providing exceptional customer experiences, making sure they are responsive to customer needs and always looking for ways to enhance the customer journey. This will go a long way in developing customer loyalty, which will make it easier to reduce acquisition cost.

Increases upselling and crosselling opportunities

Upselling and cross-selling are important strategies for growing revenue and increasing customer stickiness. Upselling involves offering customers an upgraded version of their existing product or service, while cross-selling involves offering customers additional products or services that complement their existing purchase.

By improving customer stickiness, businesses can increase the likelihood of successful upselling and cross-selling efforts. Increasing customer stickiness starts with providing a great customer journey, making sure customers have a positive experience every time they interact with your business. This means having an efficient customer support team, delivering a compelling product offering, providing regular product updates, and responding to user feedback.

The more satisfied customers become with their purchase and their overall experience, the more likely they are to return and even consider making additional purchases. This creates an opportunity to upsell and cross-sell products and services. Companies should focus on creating a customer journey that is so engaging and rewarding that customers are motivated to come back and make more purchases.

Improves customer LTV

If you increase customer stickiness by providing rewards for customer loyalty, this could add up to customer lifetime value. This could include discounts on products or services, exclusive offers, and points systems. Providing rewards for loyalty shows customers that their loyalty is valued and encourages them to keep using your products or services in the future.

Improving your product offering is another way to increase customer stickiness. This includes introducing new features, releasing regular updates, and providing technical support. Customers who have access to the latest products and services are more likely to remain loyal to your business.

Therefore, increasing customer stickiness is an essential component of any successful business strategy as it helps to reduce customer acquisition costs and increase upselling, cross-selling opportunities, and customer LTV. Investing in customer engagement activities is key to driving customer stickiness and making sure that customers continue to be loyal to your business.

Final Thoughts

In conclusion, to create a great customer journey, start by understanding customer needs and providing a personalized experience. Implement regular product updates and listen to user feedback to stay up-to-date with what your customers want. This will help you maintain a positive relationship with your customers, which will lead to increased customer stickiness. It will not only benefit your business in terms of increased revenue but also help maintain strong relationships with customers.

Cover Photo by Scott Sanker on Unsplash