Switching costs are all the costs associated with switching suppliers. For instance if you are switching from one Email marketing tool to another, there are extra costs involved that you would only have to make because you are switching. A different way of putting it is that you have to duplicate an investment you made specific to the current vendor when going to the new vendor.
There are enough reason to look at the true cost of switching email marketing tools.
It is important to know these switching costs, because:
* The switching costs can vary from one email service provider to another.
* Email marketing tools are different and suppliers handle the transition and switch differently. This can influence the final email marketing tool selection.
* Avoid ambushes by unexpected budget and resource demands.
* Knowing the costs implies you know the scope of the project that needs to be done.
Calculating your switching costs
It is important to know your switching costs. Price is one of the major considerations in choosing an email marketing tool or vendor. But the switching costs aren’t always calculated. It is a part of the total cost of ownership for the solution considered best value for money. Not calculating your switching costs can mean that projects end up costing more and taking up more resources than thought. The result? Implementation projects are going over budget and deadlines are not met.
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