Many of us are familiar with the saying that you attract more flies with honey than vinegar, a metaphor about being kind. It’s also an apt proverb for the concept of customer stickiness. Satisfied customers who see the value in your product or service are more likely to make repeat purchases, which means more revenue for your business.

These customers are also the people who will vouch for your products through online reviews and word-of-mouth marketing. But how does customer stickiness differ from loyalty or retention? And how can you best increase the stickiness of your current customer base? Let’s break it down below. 

This guide will show you how to measure customer stickiness and teach you strategies to increase it within your own business.

What is customer stickiness?

Customer stickiness is exactly what it sounds like—a business’s ability to keep customers sticking around and purchasing its products over time. You can also think of it as the result of creating and developing an offering that’s too good to pass up—or one that beats competing products. Improving stickiness involves developing strategies to increase the value of your product, ensuring it fits the needs and meets the standards of your buyers.

Giving ample attention to existing customers and focusing on increasing stickiness can have a significant payoff. According to a Bain & Company report, increasing customer retention by just 5% can improve your profits by up to 95%, and stickiness is a significant factor in retaining customers. 

Customer stickiness vs. retention vs. loyalty

Although customer stickiness, loyalty, and retention are related and even used interchangeably, the concepts are slightly different. Stickiness is the likelihood of your customers purchasing products or services over and over again. Customer loyalty, on the other hand, measures a buyer’s commitment to opting for your brand over alternatives. Both customer stickiness and loyalty are components of customer retention over time.

How to measure customer stickiness

• Net Promoter Score
• Customer retention rate
• Daily active users/monthly active users (DAU/MAU)
• Customer lifetime value
• Customer churn rate

There are a few ways you can measure customer stickiness, depending on which customer success metrics matter most to you and the type of business you’re running: 

Net Promoter Score (NPS)

One way to understand customer satisfaction and stickiness is through a Net Promoter Score (NPS). You can find your NPS through a survey that asks a group of customers how likely they are to recommend or use your products on a scale of 1 to 10.

You then separate the respondents into three categories depending on how they responded to the question: detractors (0 to 6), passives (7 to 8), and promoters (9 to 10). Finally, you use this equation to calculate your NPS:

NPS = [(Total promoters / Total respondents x 100) – (Total detractors / Total respondents)] x 100

Customer retention rate (CRR)

Another stickiness metric is customer retention rate (which encompasses both customer stickiness and customer loyalty). This gives you an idea of how often customers return to purchase your products, which you can compare with average industry rates to see how you rank. To calculate CRR, use the following formula:

Customer retention rate = [(Customers at the end of a set period – Customers acquired during a set period) / Customers at the start of a set period] x 100

Daily active users/monthly active users (DAU/MAU)

Software as a service (SaaS) and tech businesses often use another ratio: DAU/MAU. This is calculated by dividing your number of daily active users by your number of monthly active users. You get a ratio by multiplying that resulting number by 100.

This ratio tells you what percentage of users return to your website, app, or platform on a daily basis. It can give you an idea of drop-off and user fluctuation over different periods. Here’s the equation:

DAU/MAU ratio = (Daily active users / Monthly active users) x 100

Customer lifetime value

Another useful insight to gauge customer loyalty and stickiness is customer lifetime value (CLV). CLV estimates how much your customers are likely to spend with you over the course of their interaction with your business. Knowing this can help you figure out how much you can afford to spend on acquiring and retaining them. A basic starting formula for CLV is:

Customer lifetime value = Average order value x Purchase frequency x Average customer lifespan

Customer churn rate

Churn rate is another important metric when it comes to customer stickiness, and is helpful for subscription-based businesses or services. This metric tells you the percentage of customers who no longer purchase your products.

Knowing your business’s churn rate can inform your strategy for increasing sticky customers and figuring out why customers leave. The formula for calculating your churn rate is:

Churn rate = (Customers at the start of a set period – Customers at the end of a set period + New customers acquired in a set period) / Customers at the start of a set period

How to increase customer stickiness

• Develop and refine your products
• Focus on customer service
• Personalize your marketing efforts
• Reward existing customers

Once you’ve crunched the numbers and are ready to take action to improve customer stickiness and retention, these tactics can help: 

Develop and refine your products

Iteration allows you a chance to improve the products or services you offer, increasing your chances of turning leads into repeat customers. Customer feedback can offer valuable insight into what is and isn’t working when it comes to your offerings. Listening to consumers allows you to better satisfy their needs, leading to products they love and will continue to purchase. 

Focus on customer service

Another crucial customer retention strategy is improving customer service. That could look like offering fast delivery, white glove service, personalized onboarding support, or simply answering questions and concerns politely and promptly. Customer service can significantly determine whether customers have a positive experience and return to your brand. In fact, a Shep Hyken report finds that 59% of customers say customer service is a more important factor than price in their purchase decisions.

Personalize your marketing efforts

If your marketing strategy doesn’t speak to your audience or align with their needs and values, they’ll likely seek out an alternative product that does. Invest time in understanding your target customer segments and speak to existing clients in a way that reminds them of your product’s value. Personalized marketing content can help customers feel closer to your brand and like they’ve been heard, which can also improve customer stickiness.

Reward existing customers

You want to give people more reasons to return to your business, and a great way to do this is by rewarding customers. You can improve customer loyalty and stickiness by creating a customer loyalty program, where buyers earn points for purchasing products.

You could also set up a referral program where both a customer and anyone they refer to your business are rewarded for completing a purchase. This increases customer engagement and word of mouth, since buyers are encouraged to share their experience with your products and recommend your business to their friends and family.