Sticky Product: The Secret to Unlocking Long-Term Business Success
When it comes to thriving in the tech industry, having a “sticky product” isn’t just a luxury —it’s a necessity. But what exactly makes a product “sticky,” and why should tech companies, particularly SaaS businesses, care?
This article will break down what a sticky product is, why it’s crucial for tech companies, and the essential ingredients to make your product one that customers just can’t live without. Whether you’re an Account Executive, a SaaS founder, a product manager, or an entrepreneur, this guide will provide actionable insights to help you build products that keep users coming back for more.
Table of contents
What Is a Sticky Product?
A sticky product is one that users find essential and habit-forming. It’s the type of product that, once someone integrates it into their routine, they can’t imagine functioning without it. Whether it solves a major pain point, adds measurable value, or seamlessly integrates with a user’s daily work or personal life, this type of product ensures customers stick around for the long term.
Real-World Example of Stickiness
Consider tools like Microsoft Teams or Canva. Microsoft Teams became essential for remote collaboration, providing seamless integration with Office apps, reliable video conferencing, and a centralized hub for team communication. Canva, on the other hand, empowers users with easy-to-use design tools and templates, making professional-quality graphic design accessible to everyone. Both products have evolved from being “nice to have” to “can’t function without.”
When your product reaches this level of demand in a user’s life, it achieves “stickiness.”
Why Is a Sticky Product Crucial for Tech Companies?
A sticky product isn’t just beneficial—it’s a game-changer for retention, scaling, and overall sustainability. Here’s why:
1. Improved Retention Rates
Retention is the lifeblood of SaaS companies. Acquiring a customer is expensive, and if that customer churns after a month or two, you’re constantly running on a treadmill of acquiring new users just to stay afloat.
Sticky products naturally improve retention because they embed themselves into the workflows or lifestyles of their users. For example:
- Slack becomes a one-stop shop for team communication, which keeps users from seeking alternatives.
- Google Workspace locks users in with its suite of interconnected apps that address numerous business needs.
When users feel invested in and dependent on your product, retention becomes effortless.
2. Boosted Scalability
Sticky products not only build loyal user bases but also grow through word of mouth, network effects, and customer referrals. Users who love what you offer are more likely to recommend your product, and this organic growth is critical for scaling. Additionally, sticky products often increase upsell opportunities, fueling additional revenue without acquiring new customers.
3. Higher CLTV (Customer Lifetime Value)
By keeping users engaged over the long term, sticky products increase the lifetime value of each customer. Because these customers are less likely to churn, they generate recurring revenue for months—or even years—while also adding value by actively using your service.
4. Competitive Advantage
Sticky products establish a competitive moat around your business. By deeply integrating with user workflows or creating a high bar for switching to a competitor (due to customization or familiarity), they help you retain customers—even when competing products emerge.
5. Revenue Predictability
For subscription-based companies, sticky products lead to consistent, predictable revenue streams. Predictable revenue allows you to plan for growth, reinvest in the business, and scale efficiently without constant uncertainty.
Sticky products aren’t just a feature of success—they are a necessity for tech companies looking to dominate their market.
What Makes a Product Sticky?
Building a sticky product requires aligning design, functionality, and customer experience. While there’s no one-size-fits-all formula, most sticky products share these key elements:
1. A Great Product That Solves a Real Pain Point
At the core of every sticky product is a solution to a real and pressing problem. This could be addressing inefficiencies, automating repetitive tasks, enhancing communication, or improving user experience in a specific niche.
Key Questions to Answer:
- Is your product solving a real problem?
- Are you addressing a gap in the market in a meaningful way?
The deeper the pain point, the easier it is for customers to emotionally commit to your solution.
2. Ease of Use and Intuitiveness
No matter how powerful your features are, customers won’t stick around if your product is difficult to use. A sticky product is intuitive, user-friendly, and functional right out of the box, ensuring customers can derive value from it immediately.
Example Insights:
- Products like Snowflake make data warehousing accessible to businesses with its cloud-based platform that simplifies data management and analytics.
- Miro focuses on visual, easy-to-use collaboration through interactive boards and tools.
If your product doesn’t prioritize usability, users may abandon you for a more accessible competitor.
3. High Implementation Costs or Customization
Some sticky products increase stickiness through high levels of customization or integration into daily workflows. While it sounds counterintuitive, the more time or resources users invest in setting up your product (and integrating it with their existing tools), the less likely they are to leave.
Examples:
- Salesforce offers CRM customization, dashboards, and automation that users invest considerable time tailoring to their needs. Once Salesforce becomes embedded, switching seems unthinkable.
- Shopify enables users to fully customize e-commerce stores, making their platform intrinsic to the business itself.
Integration and implementation aren’t barriers in these cases—they’re moats that drive loyalty.
4. Habit-Forming Features
Sticky products often include features that drive regular or even daily use. This could range from notifications that encourage re-engagement (like Duolingo’s reminders to practice a language) to powerful dashboards that help users hit their goals.
The more a product integrates into everyday routines, the harder it becomes to give up.
5. Consistent Evolution and Value
Staying sticky means delivering long-term value to customers. The best companies don’t just launch a great product; they continuously add value by rolling out updates, introducing new features, and listening to customer feedback.
Strategy:
- Leverage user data or surveys to identify potential areas for improvement.
- Roll out feature updates that keep customers engaged and excited over time.
Ultimately, a sticky product is a moving target—it evolves with customer needs.
Build Stickiness, Build Success
To create a truly sticky product, focus on delivering value, designing with customer usability in mind, and maintaining a relentless commitment to innovation. For SaaS founders, product managers, and tech entrepreneurs, the path to building a lasting, sustainable business begins with ensuring your product is an indispensable part of your customers’ lives.
If your product isn’t yet “sticky,” start by identifying customer pain points, working on ease of use, and delivering ongoing value. Remember, it’s never too late to evolve your product into something customers can’t live without.
The Importance of Stickiness for Tech Sellers
Creating sticky products is not just beneficial for users but also transforms the landscape for people working in Tech Sales. With a sticky product, account- and customer success managers experience reduced churn rates as customers form habits around using the product, effectively integrating it into their daily processes. This strong product affinity minimizes the likelihood of switching to a competitor. Furthermore, sticky products often lead to higher conversion rates. As potential customers observe existing users consistently engaging with a product, their confidence in adopting and investing in the solution increases.
Additionally, stickiness simplifies the upsell process. When customers already value and rely on a product, they are more open to exploring enhanced features and premium offerings. This ongoing relationship fosters a supportive environment where tech sellers can continuously deliver additional value without substantial resistance. Ultimately, the stickiness of a product not only enhances customer satisfaction but also propels tech sellers towards greater success and growth in their pursuits.
Make sure to check out our Tech Sales Temple Forum to discuss topics like this one with other professionals.