konverteringskostnader

Konverteringskostnader, or switching costs, refer to the expenses a customer incurs when switching from one product or service to another. These costs can be tangible, such as the price of a new device or software license, or intangible, like the time and effort required to learn a new system or the potential loss of accumulated loyalty benefits.

There are several types of conversion costs. Transaction costs include explicit fees associated with the switch, like early termination penalties or installation charges. Learning costs involve the time and resources needed to become proficient with a new product or service. Finally, there are loyalty costs, which represent the value of lost benefits from the previous provider, such as accumulated points, discounts, or established customer relationships.

Businesses often seek to create high conversion costs to retain customers. This can be achieved through proprietary technology, integrated ecosystems, or loyalty programs. For consumers, understanding conversion costs is crucial for making informed decisions and avoiding unforeseen expenses when considering a switch. High conversion costs can create lock-in effects, making it difficult for customers to leave even if a better alternative exists. Conversely, low conversion costs empower consumers by increasing competition and incentivizing providers to offer better value.