Learning
The time and expense of learning about a new product or service. If you purchase a new type of mobile device, you need to learn its interfaces.Integration
The requirement to get a new product or service working with everything else you own. For example, importing your data into software.Configuration
The need to configure and customize the new product or service.Development
The need to create things for the new product or service. For example, the need to develop software to use a new database product.Productivity & Efficiency
A decrease in productivity and efficiency due to the process of learning and integrating a new product or service. For example, a salesperson works more slowly after switching to a new type of sales automation software.Business Disruption
The potential for your customer services, marketing or operations to go offline as you make changes or switch over.Risks
Risks associated with a new product or service. If you try a new shampoo, you may risk a bad hair day.Cancellation Fees
Penalties charged by your current provider such as a cancellation fee. It is common for firms such as telecom companies to attempt to increase switching costs to retain customers, even if they are dissatisfied. Firms with high switching costs may have little incentive to improve customer satisfaction.| Overview: Switching Costs | ||
Type | ||
Definition | Costs that are incurred by a customer to switch between products or services. | |
Related Concepts | ||
