Frequency: Coffee, Consumer Goods, Grains, Mattresses & Cars

Purchase frequency as a force for customer captivity across industries.

High Frequency: Coffee

Howard Schultz used the term “the accretive nature of frequency” to describe Starbucks catching on. The most loyal customers came 12–18x a month. High frequency built on habit, small dollar value, small budget share, and ~80% gross margins created a strong business.

High Frequency: CPG

Consumer packaged goods share frequency through a wide scope of products that are needs—paper towels, detergent—at moderate dollar values with ~50% gross margins. Frequency isn’t daily but adds up across many product lines.

Low Frequency: Cars & Mattresses

Length of car ownership is increasing, decreasing purchase frequency and limiting habit formation. Casper’s 6–7 year mattress replacement cycle makes customer captivity nearly impossible. Low frequency combined with lack of real differentiation leaves customers up for grabs.

The Takeaway

In the right context, frequency enhances customer captivity. Conversely, a lack of frequency is likely an inhibitor to captivity in most instances.