Creating Sticky Customers

 

Repeat customers are the lifeblood of your business, but customers can be fickle.

Here’s how to make them sticky.

In a traditional business, the customer buys your product or service once, and it is up to you to try to convince them to buy again in the future. However, in a subscription business, you have what is called an “automatic customer” who agrees to purchase from you in the future, as long as you keep providing your service or product.

 

Feeding Rover Automatically

 

One of the reasons subscribers are such attractive customers is that, once they subscribe, they become less price-sensitive.

To illustrate, imagine you live in England and own a 100-pound Pyrenean Mountain Dog that eats two hearty bowls of dog food a day. Feeding the love of your life is an expensive proposition, so you’re always on the lookout for a deal on dog food. Once every two weeks, you trudge down to the local pet supply store and cart a case of kibble home. In the meantime, if you see dog food on sale at your local grocery store, you’ll buy it. If you get a coupon for a buy-one-get-one-free offer from another store, you’ll take advantage of it.

Eventually, you get tired of last-minute trips to the store, so you subscribe to Warwickshire, UK-based petshop.co.uk, which offers a “Bottomless Bowl” subscription service. Now you know you’re going to get a shipment of dog food every fortnight, and the part of your brain that scans the flyers for dog food starts to shut down, knowing that the convenience of having dog food shipped automatically far outweighs saving a few dollars on kibble.

 

Integration Drives Stickiness

 

Beyond the simple convenience of automatic service, subscribers become even more loyal when they start to integrate their subscriptions into their daily lives. Subscribers knowingly enter into an agreement in which the convenience of uninterrupted, automatic service is exchanged for their future loyalty. Rather than buying once without returning, subscribers stick around—hopefully for years, which is why subscribers drive up the value of your company so dramatically.

 

 

Are you curious about how sellable your company is and what you would need to tweak to sell it when you’re ready?

The Value Builder questionnaire allows you to see your business as a buyer would see it, and to identify how you perform on each of the eight key drivers of company value. The questionnaire takes about 13 minutes to complete, and after you’re finished you’ll get a customized 27-page report outlining how you performed and where you could improve the value and sellability of your company.

Contact Us for more information on The Greenhouse and how we can help you build greater value in your business through The Value Builder System™ so you’re prepared to sell when the time is right.

*Blog Post Provided by The Value Builder System™

FREE 60-MIN BUSINESS COACHING CONSULTATION

The first step in our proven process at The Greenhouse is to book a free 60-minute consultation. In that meeting, we will discuss your business objectives and challenges, begin to develop a roadmap for guaranteed success and answer any questions you may have.

Thank you for contacting us! Our team will be in-touch soon to set up your 60-Minute consultation.