Startup Marketing Skills: Eliminate Switching Costs to Increase Sales

I have been a member of a yoga studio for the past 2 years. Lately, the studio has been getting very crowded. There is barely an arm’s length between two students. I am considering quitting this studio for another one. There are many students who are also contemplating this.

But I am unsure if the grass will really be greener on the other side. Without knowing how the other studios operate, how can I be certain that leaving the current studio will be a wise choice?

How do I know if the current situation is worse-off?
How do I know if I am missing out on better quality elsewhere?
Should I take the chance and move to another studio?
What about the goodwill from the staff, relationships built with the teachers and other intangible benefits accumulated over the last 2 years?

Every customer of every product will have gripes about their products. But they won’t change to another brand, just yet. Why? Switching cost! You may end up losing a lot more by leaving your current product even though you have complains about it.

In my case, I have not acted on my thoughts of switching for 6 months. Why? One reason is that any yoga studio will require a 1 year contract to be signed. That is a high price to pay without being assured of the quality that I am looking out for. What if I sign for a year and it turns out to have the same problems? Now not only will I be stuck with them for year, I would have zero rapport with the staff and less emotional attachment.

These other studios are missing out on their competitors’ unsatisfied clients because the costs of switching are high.

There are many barriers to switching that all businesses should be aware of. Switching costs occur because customers are unsure of what the other brands offer and if they can fulfill their requirements. What if these other brands turn out to be worse? Switching costs can be either tangible or intangible.