Lean Mobile App Development

Switching costs

Switching costs refer to the costs that arise for a customer when they switch to a competitor's product or service. Steep switching costs can prevent users from leaving. Depending on the situation, these costs can come in a variety of forms. Here are examples of the types of switching costs that would impact a company considering new enterprise-grade software packages:

• Direct costs: Costs associated with researching, evaluating, and negotiating the prices of these new software packages
• Relationship costs: Disruption or dissatisfaction among team members who are used to the old product
• Product-related costs: Purchase price and training costs, as well as financial costs associated with decoupling oneself from the original product ...