Tag «Customer Value Approach to Segmentation»

Define Switching Barriers & Create Value-based Customer Relationships

Define Switching Barriers & Create Value-based Customer Relationships

The second strategy used for customer retention is to build switching barriers (or costs) into the service product. There are two types of switching barriers (costs): Economic Barriers – representing financial disincentives to defecting such as termination penalties and service contracts and Psychological Barriers – where valued personal relationships are broken with a change of …