Making stickK Stick: The Business

of Behavioral Economics

Group No. 8
Kajol Sood
Lakshay
Manjeera Anand
Parvathy Madhu
Reshma
Ruchi Jangid
Snehasis Khan
Sumit Kumar Raut
 5Cs Framework
1. Company: stickK is a website that aim to redefine goal setting by empowering behavioral
change, customer driven organic marketing

2. Customers: Any individual set to complete a goal( Health, Education or any custom goal),
Corporate clients (Acting as group helping set goals for employees/ company)

3. Competition: Spark People, PEERtrainer, Virgin Pulse, HealthyWage, Keas

4. Collaborators : American Cancer Society (ACS), Office supplies retailer Staples, Other
corporate and non-profit firms,Charity organisations,Supporters

5. Context: Economic-Customers willing to pay despite free options, not charged upfront
Social-Motivation to complete goals set, Increasing media attention, sharing
among friends
 Decision Problem
Should stikK move away from a consumer focused site to a B2B model?

Alternatives:
1. Stick to being a consumer-centric site focusing on individual user
base
2. Focus on new clients(corporate and non-profit organizations) thus
bring a new revenue model
 Evaluation of Alternatives
1. Stick to being a consumer-centric site
PROS: Consumer decision Journey- high success rates will
translate to good post-purchase experience-loyalty loop
Marketing through word of mouth, blogs & social media
CONS: Customer growth facing slowdown

For year 2012, Total revenue from failed contracts

= revenue from anti-charity+revenue from charity
=70,000x$360{(12.9%x52.1%x29.5%)+(19.9%x21.6%x19.5%)}
= $710,855.082/year

2. Focus on new clients

PROS: Fixed revenue irrespective of success rates
CONS: Might turn customers into passive-loyalists (Staples’ incentives)
Would rely on traditional marketing
High Cost incurred by clients(pitching-product development-dedicated Account management team)

For an year, assuming the client uses stickK for 12 months (best-case scenrio), the profit stickK makes=
revenue(startup+admin fees)-cost to keep an employee*2 = (35000+180000)-(85000*2)= 45000/client. Next year,
this amount will decrease with retained clients(less startup fee)
 Recommended Action

Stick with consumer centric website

To increase the revenue, the amount per stake has to go up. Organise
competitions or challenges for charity between user groups to increase
amount/stake.

Referrals- 2-3% of stake amount-will encourage higher stakes and increase the
no. of at-stake contracts.
 Action Plan

1. Savings costs on traditional advertising through promoting competitions and

charities
2. More control on the types of contracts (more ongoing contracts- types of
contracts)
3. After paying fixed startup fees, companies will not be adding much value