Customer stickiness is a key metric for businesses in any industry. It is a measure of a customer’s loyalty to a company and can often indicate the overall strength and success of a business. In recent years, businesses have begun to focus more on customer stickiness to better understand the depth of their customer relationships, as well as to develop strategies to improve customer loyalty and retention.
The concept of customer stickiness has become especially pertinent in the world of digital marketing, where customer relationships can be measured more effectively and customer habits can be better tracked. As customer stickiness metrics become more sophisticated, businesses are able to take a more holistic view of their customer base and identify areas of improvement that can help them increase customer loyalty and retention.
In this blog post, we’ll explore customer stickiness in-depth. We will discuss what it is, why it’s important, and how businesses can use customer stickiness metrics to gain insights into customer behavior and
Customer stickiness – defined
Why is increasing customer stickiness important?
It is crucial to increase customer stickiness because doing so can result in more repeat business, higher sales, and better profit margins. Additionally, encouraging repeat business from customers can help you grow your company’s longevity and lifetime value. It can also help you gradually turn new customers into devoted ones and give you chances to upsell customers in the future.
What is customer stickiness?
Customer stickiness is a marketing term for when a customer makes multiple purchases from your store. It gauges how likely it is for customers to remain loyal to your brand. Your chances of getting customers to come back increase as your customer stickiness increases. Customer stickiness may be impacted by your product’s quality, price, convenience, and engagement experience.
Differences between customer stickiness and customer loyalty
Although both customer stickiness and customer loyalty are important components of customer retention, they are not identical to one another in many ways. The following are some of the most typical distinctions between customer loyalty and customer stickiness:
What are the benefits of increasing customer stickiness?
Because they are aware of the many advantages of boosting customer stickiness and fostering customer loyalty, marketers, salespeople, and customer service representatives work hard to give their clients a great experience. Increasing customer stickiness can help you:
How to increase customer stickiness
There are some fundamental steps you can take to get started even though marketers, salespeople, and customer service representatives may employ a wide range of techniques to increase customer stickiness. Here are some pointers to help you grow customer loyalty for your company:
1. Assess your current level of customer stickiness
First, determine the typical number of customers who make two or more purchases from your company to establish a baseline for your level of customer stickiness. To do this, examine a sample of randomly selected customers over a predetermined period of time. To determine your average customer stickiness level, use the formula below:
(Repeat customers / All Customers) x 100 represents the customer stickiness level.
Your average customer stickiness level would be 30%, for instance, if you had 10,000 customers in the past 90 days and 3,000 of them came back to your store to make at least one additional purchase. You can use it as a benchmark to gauge your progress moving forward once you’ve determined what your average customer stickiness level is.
2. Review your purchase data
Next, analyze the historical purchase information from your loyal customers to determine any preferences, purchasing tendencies, or shared interests. This can assist you in figuring out what motivates customers to make repeat purchases from your store. As you review the historical purchase data, some things to keep in mind are:
You can also review any information you have about the preferences, objectives, or pursuits of your clients from earlier surveys. You can better understand your customers, build a relationship with them, and give them more value in the future by analyzing your previous purchase data.
3. Calculate time to next purchase
Next, determine how long it usually takes between each customer’s first and second purchase using your historical purchase data. This can assist you in creating a baseline for the frequency with which your loyal customers buy new goods from you. Using this information, you can choose the ideal times to contact your customers.
After that, you can retarget them with advertisements, discounts, or personal messages to make it more likely that they will decide to make another purchase from you. For instance, to encourage new customers and boost customer stickiness, you might send them a text or email with a special discount code one month after they make their first purchase from you if you notice that the majority of your repeat customers make a second purchase 30 days after visiting your store.
4. Identify affinities
By identifying product affinities, you can anticipate which products customers might want to buy next based on their initial purchase. Find out which category or type of product your customers are most likely to buy first by using your historical purchase data. Many customers make their second purchase of a product from the same category, but you can use your historical purchase data to determine whether this is the case for your loyal customers.
For instance, a business that sells cosmetics might divide its offerings into several categories, such as makeup, skincare, fragrances, and wellness. They may discover by looking at their previous purchase information that new customers who buy makeup from them frequently make a second purchase from the makeup category. In a similar vein, clients who buy wellness products from them frequently make a second wellness-related purchase. Finding these patterns in your customers’ purchasing behavior can help you predict the products they might like in the future so you can make recommendations to them.
5. Create personalized content
When you know when the average customer will make their next purchase and what products they prefer, you can use that knowledge to tailor your marketing content. For instance, if a new customer bought a pair of athletic shoes, you could send them an email a week later highlighting different styles of athletic shoes that prior buyers of related goods had appreciated. Review the contact details you have stored for your clients. You can create personalized content by:
Tips for increasing customer stickiness
Additional advice to help you increase customer stickiness is provided below:
FAQ
What does stickiness mean in business?
Customer stickiness is a marketing term that refers to a company’s propensity for obtaining repeat business. According to stickiness, a customer is more likely to “stick” with your brand by making multiple purchases. Your brand’s stickiness is influenced by a variety of factors, including product quality, pricing, ease of use, and customer experience.
How do you make customers stickier?
- Know Who You’re Looking For. Sticky customers, or those who remain loyal to your brand year after year, are difficult to find.
- Know What They Want. …
- Offer The Right Offer. …
- Meet Customer Expectations. …
- Remind Them Of Your Value.
What are the benefits of stickiness?
- Increase the lifetime value of your customers.
- Improve customer loyalty.
- Identify opportunities to upsell customers.
- Provide customers with more value.
- Increase customer referrals.
- Improve your ratings and reviews.
- Generate more sales.
- Increase revenue margins.
What are sticky sales?
Temporary markdowns don’t change much in response to cost and economic conditions, indicating that monetary policy only slightly affects overall pricing.
