Switching costs for email marketing tools

email tool switching costsSwitching costs are those costs associated with switching suppliers. For example, if you switch from one email marketing tool to another, you’ll incur extra costs simply because you are switching.

Think of the duplicate costs during the switch from your current vendor to the new vendor and all the costs of set-up, integration and training that are required. But don’t let that hold you back; switching is often an investment in product and service improvement.

Why is it important to know these switching costs?

There are enough reasons to look at the true cost of switching email marketing tools.

  • Switching costs can vary from one email service provider to another.
  • Email marketing tools are different, and suppliers handle the transition 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.

Factor in your switching costs

It’s important to know your switching costs. Price is a major consideration in selecting an email marketing tool or vendor. But the switching costs aren’t always factored into the equation. They are part of the total cost of ownership for the solution considered best value. Failure to calculate your switching costs can cause projects to cost more and exhaust more resources than anticipated. The result? Implementation projects go over budget and deadlines are not met.

About Jordie van Rijn

Jordie van Rijn is an independent email marketing consultant and analyst. He is the founder of Email Vendor Selection and specializes in smart email marketing, online marketing strategy, software selection, campaign management, optimisation and RFP / vendor selection. He tested, reviewed, and wrote about 100+ business software including email marketing services, CRMs, ecommerce platforms, and online course creators. Published in-depth email marketing guides for financial service, ecommerce, travel, restaurant, and fashion industries.
Named one of "50 Online Marketing Influencers to Watch" by Entrepreneur magazine. Companies like Scania, KLM, Unilever, AEGON, CZ, FNV, NRC Media have asked me for advice.

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