Making StickK Stick - Case Analysis

Submitted By-
Sec-B | Group 6
 5 Cs
COMPANY CUSTOMERS CONTEXT COLLABORATORS COMPETITORS

• Founded in • Obese People • StickK’s growth • Angel Investors • SparkPeople

January 2008 • Staples in B2C and B2B • Charities • PEERtrainer
• Had a user base • American Cancer area • Virgin Pulse
of 1 lakh by 2012 Society • Increase in B2B • HealthyWage
• Allowed users to contracts • Keas
create • Increasing focus
commitment on B2B will
contracts, if reduce the focus
failed need to in B2C
pay penalty
• Helps in
reducing obesity
Problem Statement:
To determine which business model (B2B or B2C) would provide a more sustainable source of
revenue and reach the goal of 1 million user base in the next two years

Alternatives:
1. Grow and develop B2B clients
2. Acquire and retain customers on a B2C consumer focused site
3. Adopt a combined approach

Criteria for Evaluation:

1. Sustained and recurring revenue stream
2. Entry Barriers
3. ROI
 Evaluation of Alternatives:
Alternatives Sustained/Recurring Revenue Stream Entry barriers ROI (Qualitative)
Grow & Develop B2B B2B will give StickK a sustained and There is high barrier to Huge customization &
clients recurring revenue stream from the entry due to the long manpower costs will be
monthly fee charged to clients term nature of B2B incurred, hence B2B may not be
contracts and the high scalable easily
degree of customization
involved

Acquire and retain B2C will have rapid acquisition growth
customers on a B2C as demand for commitment contract is
consumer focused expected to surge. However, revenues
site may not be recurring as users may
switch to competitors if they lose
motivation or find a similar offering
There is low barrier to There would be minimum
entry as customers can labour and product
easily switch to development cost required to
competitors grow, hence B2C is highly
scalable

Adopt a combined B2B clients will provide steady cash B2B will serve as a ROI for B2B will be realized over
approach flows to StickK which can in-turn be hedge for B2C for a period of time unlike B2C
used to drive brand loyalty & customer barriers to entry where there is minimum
retention activities on B2C platform investment
Recommendation – Continue with B2C
• StickK should continue the B2C model. However, to ensure a recurring revenue stream(unlike
B2B), StickK should plan regular engagement activities with its existing database of customers
• StickK can add to its revenue stream by adding more features onto its platforms such as regular
reminders and motivational articles as a premium option with a subscription fee. StickK can move
up the value chain to become a coaching platform and not just a platform to meet goals
• StickK can look to trademark it’s commitment contracts scheme to increase the barriers to entry
• For B2C, focus should be on customer retention rather than only on customer acquisition. Only
32% of customers had contracts with stake on StickK. This number can be increased through
loyalty programs for reaching Goldberg’s target of one million user base
THANK YOU