What is Customer Stickiness and How To Improve It? 

For most small to medium-sized businesses, acquisition costs seem to be climbing faster than your Friday‑afternoon CPM refresh. Research conducted by the 2025 Business of Apps report shows that Meta’s average Cost Per Thousand Impressions (CPM) has more than doubled from just under $5 in 2020 to just under $11 in 2025, cutting into the margin on thousands of first‑time orders.

Customer stickiness tells us the likelihood of a first-time buyer making a second purchase. It’s a way of measuring the transactional point at which a buyer goes from sampling your brand to trusting it. A stickier customer file proves two key points:

• Lower acquisition cost per order.
• Improved cash-flow predictability.

According to an article by TopTal, if your business doesn’t convert that first checkout into a second, you may well be lighting your ad budget on fire. By understanding the levers at play, you can convert a one‑time transactional relationship into a predictable revenue engine—one second purchase at a time.

This article will help you get a better understanding of exactly what customer stickiness is, where it applies, and how to use the metric to improve your small to medium-sized business’s KPI.

Stickiness vs. Retention vs. Loyalty

The concepts are often interchanged as if they mean the same thing. But while the three metrics are related, they’re all actually quite different. In fact, we’d go as far to say that it’s not only important to recognize the differences between the three, but to use them in combination in order to get a true grasp of the state of your customer base.

Time Horizons Matter

Time-horizon tells us what the time cycle relevance is for a given term. In regard to customer loyalty, this gets measured on a lifetime basis, while retention is measured on a multi-purchase, multi-year basis. Customer stickiness focuses on a much shorter frame (often 100 days or less).

This isn’t an arbitrary distinction; it should change the way you look at each metric. Stickiness is about gauging initial product/service relevancy to the customer. Retention shows you whether or not customers are building a habit. Loyalty tells you if the customer is building a preference and considers your offering to be indispensable.

Your focuses for each metric are going to be entirely different.

Stickiness as the Gateway to LTV

​​Let’s start with the most obvious: a purchase should never be a one-time affair.

A recent  Bain & Company study revealed that 2024-2025 proved a tipping point for customer retention as marketing budgets spent on existing consumers just surpassed spend on new customer acquisition, with a staggering 53% allocated to existing customers. Their purchase journeys have reached a critical inflection point, with Mckinsey reporting it takes three new customers just to replace one lost. What this should indicate is that your company’s second purchase marks a behavioral inflection point that will change your customer’s value trajectory.

Additionally, Impact tells us that new customer acquisition costs have been surging in the last decade – having increased by 222% since 2013. So why is it that the economic game has changed so much? Well, not only has churn increased over the last few years, but  75% of software businesses, for instance, have observed a decrease in net revenue retention while simultaneously increasing customer success spend. The organizations thriving in the new growth economy realize that customer retention has gone beyond a tactical initiative in a single department to an enterprise strategy that requires collaboration, processes, and new technologies.

Saas as an industry case study

While looking at the impact of making a second purchase on average lifetime value, it’s noteworthy to see how consistent the general trends remain across all retailers despite significant differences between industry domains.

The relationship between second purchases and lifetime value shows dramatic sector-specific variations, with universal patterns emerging around critical behavioral milestones. This overview will show that customers who don’t make a second purchase within the first two months are unlikely to ever return, while those who do make that second purchase show a 27% likelihood of making a third purchase, jumping to 49% likelihood after completion.

SaaS companies have the most distinctive LTV patterns, greatly differing from one segment to another depending on factors like Annual Contract Value (ACV). While enterprise (ACV >$250K) companies may reach 110% NRR, small-to-mid companies (ACV <$12K) achieve median Net Revenue Retention around 100%.  UX Cam reports that this expansion revenue now contributes to 40% of total new ARR growth, showing a roughly 5% increase since last year. Furthermore, Benchmarkit shows us that SaaS companies achieving 120%+ Net recurring revenue have mastered upselling and cross-selling to existing customers, though only 41.1% of SaaS businesses with ARPA over $500/month achieve 100%+ net retention.

Key Points

No matter your industry, the lesson here is that each returning purchase can demonstrate a positive correlation to an increase in customer Lifetime-Value (LTV).

• Acquisition economics flip in your favor: once a shopper moves beyond “trial,” their repeat revenue begins to amortize the original CAC, improving payback periods without fresh ad spend.
• A tiny cohort drives outsized revenue. According to an Adobe Digital Index report, your repeat buyers generate roughly 40–41 % of all online sales.
• Referral propensity spikes: satisfied second-time purchasers are far likelier to share discount codes, reviews, and social proof, organically lowering future acquisition costs.
• Price sensitivity drops: trust built during the initial first cycle makes customers 15 % less reactive to modest price increases or competitive offers.

Mathematically speaking, improving stickiness has an exponential positive impact on long-term business viability because it makes acquisitions more efficient, increases customer lifetime value, and creates repeatable growth. Think of it this way: If your early-stage purchase retention is poor, you will need to acquire new customers at an accelerating rate just to stay flat, which can be very costly. On the other hand, if you can drive repeat purchases early, your growth will be repeatable and non-linear.

The companies that are most successful with sticky growth have one singular focus: acquisition as a one-time opportunity to get your product in front of new users, while driving experiences that act as a catalyst for repeat purchases – the true path to high unit economics and long-term retention.

How to Calculate Customer Stickiness and Set a Baseline

Before you start tweaking campaigns or layering in loyalty perks, you need a hard number that tells you how well your brand converts curiosity into habit. Utilize these calculations to make some deductions from which you can proceed accordingly.

Monitor lift (the delta vs. your baseline) to determine whether campaigns move the needle, not just raw reach.

Now that you have your baseline, every subsequent initiative (replenishment reminder, VIP drop, checkout overhaul) can be measured by a single test: did stickiness increase? Track these metrics alongside, not just raw reach, and you’ll quickly identify early winners worth scaling and dead ends worth cutting

Creating cohort‑retention curves allows you to identify and close any drop‑off cliffs that occur after months three or six.

Formula

Find your repeat customer purchases by looking at your customers’ historical data and filtering for them. As stated earlier, the key here is defining your time window—most brands utilize a  90-100 day frame for fast-moving products.

Customer Stickiness = Repeat-purchase customers ÷ total customers × 100

Be sure to filter out for returns, refunds, and gift purchases to get clean data that actually reflects intentional repeat behavior.

Benchmarks & “Lift” Metrics

• Typical e-commerce/retail baseline: 15 – 30 % returning-customer rate.
• Track lift (the delta vs. your baseline) to see if campaigns create visible change

Premium and luxury brands tend to have lower percentages but higher dollar values per repeat purchase. Consumables or subscription-adjacent products can achieve 40-50%+and subscription-adjacent products can hit 40-50%. What’s more important though, is beating your own baseline – a 5% improvement in stickiness can lead to a 15-20% lift in revenue over time.

Other Related KPIs to Watch

Armed with the baseline, every future effort—a replenishment nudge, a VIP drop, a checkout facelift—can be measured against a single test: did stickiness increase? Monitor these metrics along with (not instead of) raw reach, and you’ll see early successes that deserve scaling, and dead ends that deserve pruning.

• Chart cohort‑retention curves to identify (and plug) any retention cliff that may appear after month three or six.
• Track the CLV delta between first‑purchase cohorts and those that have surpassed the two‑purchase stickiness threshold to quantify the jump in revenue.
• Measure marketing lift in CLV delivered by each content or channel program to understand which efforts actually drive those improvements.

The key is connecting these metrics back to actual business impact rather than vanity numbers. If your cohort curves flatten after month two but CLV jumps 40% for repeat buyers, you know exactly where to focus your retention spend.

Track these KPIs monthly, and you’ll start seeing patterns that let you double down on what’s working and kill what’s not before it drains your budget.

Proven Tactics to Increase Stickiness

The difference between a hopeful first purchase and a predictable revenue stream is simple: management. Whether or not a customer comes back depends largely on these 5 levers.

Value-proposition Fit

Price, convenience and quality that fit customer expectations make the second purchase feel like common sense as opposed to a decision. Tighten this metric, and you avoid the well-documented post-checkout regret, furthering sowing the seeds for habit loops.

• Price anchoring against alternatives: Regularly audit competitor pricing and highlight your value differential in post-purchase communications, showing customers they made the smart choice.
• Convenience optimization: Streamline reorder processes with one-click purchasing, saved payment methods, and predictive inventory suggestions based on past buying patterns.
• Quality consistency tracking: Monitor product reviews, return rates, and customer satisfaction scores to catch quality dips before they impact repeat purchase rates.

When customers feel they’re getting exceptional value relative to alternatives, the mental barrier to repurchasing drops significantly. This alignment between expectation and delivery is what transforms occasional buyers into predictable revenue sources.

High Touch Onboarding

By structuring a post-purchase sequence, you can demonstrate value the moment the order is delivered, further shrinking buyer’s remorse while prompting repeat use.

• Welcome series automation: Send a 5-7 piece welcome series in the first two weeks with product tips, how-tos, and cross-selling. You can use this to drive the most value from your purchase during that initial period.
• Usage trigger: Configure celebratory triggers that hit once a customer has reached certain usage milestones (first week of using, certain amount of usage, etc) to continue to build those positive product/productivity associations.
• Early feedback collection: Survey customers within 7-14 days of purchase to identify satisfaction gaps and address concerns before they impact repeat purchase likelihood.

The first 30 days after purchase are critical for setting long-term relationship expectations. Customers who feel supported and educated during this window are dramatically more likely to return for additional purchases. Your onboarding sequence should feel like a personal guide helping them get maximum value, not another marketing funnel.

Time-to-Next-Purchase Campaigns

Approximately three months after a customer’s purchase, you’ll want to leverage incremental-purchase probability by implementing nudges that unlock maximum value from the 100-day window.

• Consumption-based timing: Project reorder windows from purchase history and trigger automatic reminders when customers are 10-15% from repurchasing. A good way to look at this is with health supplements (ex. a 60-day supply will generally put out a reminder a week or two before that supply runs out).
• Progressive discount ladders: Use time-based discounts with increasing opportunity to incentivize purchasing within a certain window while still remaining profitable. This can create a sense of urgency for the consumer.
• Cross-sell integration: Use replenishment moments to introduce complementary products, since customers are already in a purchasing mindset during restocking periods

Missing these opportunities can often mean losing customers to competitors who capture them during their next purchase cycle. Smart timing combined with relevant messaging can turn this natural reorder period into a reliable revenue driver.

Personalized, Triggered Messaging

Using behavior-based nudges to communicate can help the customer feel like they’re receiving a concierge service as opposed to a broadcast. For instance, you can set browse-abandon triggers for when a customer leaves a cart open, or purchase-abandon triggers when they don’t go through with a purchase.

• Browse abandonment flows: Send time-targeted emails in 1-3 hours of cart abandonment with product images, reviews, and limited-time urgency to complete a purchase.
• Usage pattern triggers: Analyze customer usage patterns (login frequency, feature use, purchase timing) to identify contextually relevant moments to engage customers at their moment of highest engagement.
• Lifecycle stage messaging: Segment customers by purchase history and engagement level to deliver appropriate content, from education for new users to exclusive offers for VIP customers.

Behavioral triggers work because they respond to demonstrated intent rather than arbitrary calendar dates. When your messaging feels responsive to customer actions and needs, it builds trust and increases conversion rates. The key is making each communication feel like a helpful suggestion rather than an intrusive sales pitch.

Continuous Product Iteration

It’s important to regularly enhance products to keep the brand fresh and prevent customers from wandering off to the newest alternative. Shipping monthly micro-features, publishing transparent release notes, and surveying power users every quarter can be great ways to maintain consistent user satisfaction.

• Feature velocity tracking: Keep up a consistent cadence of minor improvements (monthly) and major releases (quarterly) to stay competitive and newsworthy.
• Customer-driven roadmaps: Prioritize feature development by customer feedback from repeat customers, who are the people who represent your most loyal user base and know your product best.
• Transparent communication: Share development progress, upcoming features, and behind-the-scenes improvements to make customers feel like insiders and stakeholders in your brand’s evolution

Product stagnation is one of the fastest ways to lose sticky customers to competitors who appear more innovative. Regular iteration signals that you’re invested in long-term customer success, not just initial transactions. When customers see continuous improvement, they’re more likely to stick around for future enhancements rather than switch to alternatives.

Common Mistakes to Avoid

It’s common to overlook a number of metrics in the customer stickiness funnel. Here’s a general list to keep in mind to avoid missing important information. 

Stop bribing with perpetual markdowns

Coupons are an amuse-bouche, not the entrée. If you train customers to wait for the next incentive, you’ll hemorrhage margin and devalue your worth. Instead, sell price as value: occasional, tactical incentives that reward brand loyalty, not brand impatience. Believe me, a confident brand can afford to stand strong.

Not looking at the numbers that matter

The sale isn’t final when the card clears; it’s only just beginning. Slow shipping, damaged goods, and a clunky returns process can unravel the domino effect and squander momentum.

By all means, tighten logistics and look to what matters. Tie in RPR instead of vanity opens and impressions. Momentum only multiplies when the experience measures up to the promise.

Don’t let buyer impulse fizzle

That initial honeymoon is your only chance to turn a happy accident into a habit. Wait until day 100— or worse, send nothing at all— and the buyer’s impulse fades out. When this happens, you’ll end up paying CAC all over again.

It’s important to keep customers interested while you have them, so making those repeated contacts beforehand is useful. And when you do so, focus on lift in stickiness, not impressions or opens alone.