How Successful Brands Keep You Coming Back for More.
Have you ever wondered why some brands stick in your mind while others fade away? Why do you always choose Nike over Adidas or Coca-Cola over Pepsi? It’s all about the stickiness factor, a term coined by Malcolm Gladwell in his book, “The Tipping Point.”
What is The Stickiness Factor?
The stickiness factor is defined as “the quality that compels people to pay close, sustained attention to a product, concept, or idea.” In simpler terms, it’s like a glue that keeps you attached to a brand.
In his book, Gladwell shares the story of Hush Puppies, a struggling shoe brand in the 1990s that suddenly became a cultural icon. How did this happen? One day, a group of young hipsters in New York City started wearing them, and suddenly everyone wanted a pair. This small group of trendsetters had uncovered the stickiness factor of Hush Puppies.
The stickiness factor can come in many forms. It can be a catchy slogan like Nike’s “Just Do It,” a memorable logo like Coca-Cola’s red and white wave, or a unique product feature like Apple’s touch screen technology. Whatever it is, it needs to be something that captures people’s attention and makes them want to stick around.
So, how does this apply to today’s brands? Let’s take a look at a few examples.
Uber’s Stickiness Factors
Uber’s stickiness factor is convenience. With just a few taps on your phone, you can summon a ride and be on your way. No more waiting on a street corner, no more hailing a taxi. And with features like UberPOOL, you can even save money by sharing your ride with other passengers. Uber has made the process of getting from point A to point B so easy that it’s hard to imagine going back to the old way.
Netflix’s Stickiness Factor
Another example is Netflix. Netflix’s stickiness factor is personalization. With a vast library of movies and TV shows, it can be overwhelming to decide what to watch. But Netflix makes it easy by recommending content based on your viewing history. If you binge-watched “Stranger Things,” you’ll probably enjoy “The OA” too. This personalized approach keeps viewers engaged and coming back for more.
Tesla’s Stickiness Factor
Finally, let’s talk about Tesla. Tesla’s stickiness factor is innovation. With its sleek design, cutting-edge technology, and environmentally-friendly focus, Tesla has redefined what it means to own a car. Tesla owners are proud to show off their vehicles and be a part of a movement towards a sustainable future. By pushing the boundaries of what’s possible, Tesla has captured people’s imaginations and loyalty.
Is Stickiness Measurable?
To determine the stickiness of a product/brand, it's important to track two metrics:
Daily Active Users (DAU) and Monthly Active Users (MAU).
These metrics can be used independently to measure retention and activation, but when viewed together, they provide greater insight. DAU represents the number of people who interact with your product daily after signing up previously. MAU measures user engagement on a monthly basis. By comparing these two metrics, we can calculate the stickiness of your product.
To calculate stickiness, divide the number of DAU/MUA. You can also divide it by weekly active users (WAU) instead of MAU.
Example: if you have 300 monthly active users and 30 of them engage with the product daily, your stickiness percentage is 10%.
Data Collection Guidelines
To ensure accurate data collection, it’s important to establish a clear definition of what constitutes "active" for your particular type of business when tracking metrics such as stickiness, DAUs, and MAUs.
Example: Facebook used to measure stickiness by counting photos posted or friend requests made, while Slack focuses on messages sent via chat.
- Founders and product managers need to set engagement goals and identify key actions they wish to track.
- When calculating DAUs, exclude new users to avoid inflated numbers that can create a false impression of stickiness.
- Before tracking any metric, it is crucial for businesses to evaluate if it is relevant to their specific business model and supports their growth and sustainability.
Tools like Mixpanel, Amplitude, Segment, and Google Analytics can be used to collect and analyze data.
Benchmarks for Stickiness
When assessing your business's stickiness, it's important to keep in mind that benchmarks can vary depending on your specific business model and stage of growth.
To get a clear understanding of how your company compares, it's best to look at similar companies. Sequoia Capital suggests that a standard DAU/MAU is between 10-20%, with only a few companies exceeding 50%.
Mixpanel's 2017 benchmark report delves further into stickiness, determining that a 20% stickiness rate is good, with anything above 25% being exceptional. The report also breaks down the average DAU/MAUs for various industries, including finance, SaaS, ecommerce, and media. SaaS and media perform better with an average ratio of 13.0 and 11.9, respectively, while ecommerce ad finance have smaller stickiness ratios.
Summing Up
The stickiness factor is a crucial element in today’s branding landscape. It’s not enough to simply have a good product or service.
You need something that sets you apart from your competitors and makes people want to stick around. By understanding what makes your brand sticky, you can better engage with your audience and build a loyal following. So,
