January 2005
Intermediate to advanced
232 pages
5h 35m
English
Content preview from Smarter Pricing: How to capture more value in your market
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3. The switching rate
The third key indicator is the switching rate. What percentage of last year’s customers are not buying this year? How many existing customers have switched to other suppliers? If the churn rate of customers is declining, the price may be too low. If the churn rate is rising, then the price may be too high. If sales information by customer is not available, for example at a retailer, it can be possible to research sample groups of customers to establish this information at a macro-level.
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