Glossary

Switching Costs as a Strategy

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Switching costs are the costs (time, money, effort, or data loss) that a consumer incurs as a result of changing brands, suppliers, or products.

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Why are high switching costs a double-edged sword?

While they improve retention, they can also lead to "captive" customer resentment. Strategic CS focus should be on building "Value Realization" so the customer *wants* to stay, rather than just being *unable* to leave.

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