Stick To Your Customers By Switching Costs

Some claim satisfaction or even satisfaction with the company's products.

Switching cost is a one-time cost when a customer turns from one product provider to another.

The cost is more than just

Switching costs are common in all trading processes, whether commercial retailers or sales agents. Once the original relationship is established, the conversion cost will be paid for considering the conversion of new paction objects, and the downstream cost will also be pmitted upward along the supply chain.

For example, ordinary consumers have become accustomed to some brand of cold medicine, and pharmacies are not good enough to recommend other brands of similar products.

The existence of switching costs tells us the importance of preempting the market.

To make the first step, we must first clear the target and concentrate our strength. We must not be too greedy to seek perfection. The meat is too heavy to chew. The bullet is not enough on the half way, and the legs are weak. Secondly, we should not be impatient and impatient to eat the hot tofu. Only we must keep our feet on the ground, step by step, do everything right, keep calm and steady, do not go backwards, so that we can achieve real "fast".

This is the reason why sharpening does not cut wood.

To get the advantage of first mover, enterprises should improve the conversion cost of customers. First, we should assess what losses will be made in three aspects of procedure, finance and emotion if their customers turn to competitors, and then take necessary measures to stick to customers.

Different industries and different types of enterprises aim at different objects, and the measures they may take are different.

For example, manufacturers increase the conversion cost of agents, increase sales discount and reward to customers, enhance customer contacts and enhance personal feelings; the measures aimed at ultimate consumers may include brand promotion, customer trust and customer perception of risks.

For example, Crest has succeeded in promoting the risk of tooth decay without fluoride (tooth decay), improving customer perception of the risk of alternative products, and reducing customer switching behavior.

The most common way for retail stores to increase the switching costs of old customers is membership system.

Of course, nothing can be overdone.

Too much increase in customer switching costs can sometimes frighten some potential customers, causing dissatisfaction and even reprisals for existing customers.

Therefore, enterprises should strive to reduce the cost of "pfer" to potential new customers, implement interactive management of customer switching costs and customer satisfaction to existing customers, better satisfy customer needs, effectively integrate customer conversion cost management, social morality and product (service) value-added, and make the marketing strategy of customer switching cost better play a role in customer relationship maintenance.