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Concept8 min read
Switching Costs
Switching costs are the real and perceived costs a customer incurs when moving from one provider to another. High switching costs create lock-in, protect pricing power, and are one of the most durable competitive moats.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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