Switching Costs
Understanding why people stay with bad solutions and when they switch
Your Progress
Section 4 of 5Why Do People Stick with Bad Solutions?
Your product is better. Faster. Cheaper. But people are still not switching.
Why? Switching costs. The friction of changing from their current solution to yours.
Understanding switching costs helps you know when users will actually hire your product.
The Six Switching Costs
1. Time Cost
Hours to set up, migrate, learn. "I do not have time to switch right now."
2. Money Cost
Cancellation fees, new subscriptions, setup costs. "I already paid for this year."
3. Learning Cost
New interface, new workflows. "I finally know how to use this. Start over?"
4. Data Cost
Migrating files, history, integrations. "I will lose all my data."
5. Social Cost
Convincing team, losing shared context. "Everyone else uses the old tool."
6. Emotional Cost
Fear of breaking workflow, decision anxiety. "What if it does not work?"
Calculate Switching Cost
Switching Cost Calculator
Rate each switching cost from 0 (no cost) to 10 (very high cost).
Time to switch
Hours to migrate, set up, learn new tool
Money to switch
Cancellation fees, new subscription, setup costs
Learning curve
Effort to learn new interface and workflows
Data migration pain
Moving files, history, integrations
Social cost
Convincing team, losing shared context
Emotional friction
Fear of breaking workflow, decision anxiety
Switching Cost: Low
Easy to switch. Users try alternatives.
The Forces of Progress
Push vs Pull Forces
People switch when push + pull outweigh anxieties + habits.
Push (Why Leave?)
- →Excel is slow with large files
- →Hard to collaborate in real-time
- →No mobile experience
- →Formulas are confusing
Pull (Why Switch?)
- →Notion looks modern and flexible
- →Team uses it and likes it
- →All-in-one workspace promise
- →Free tier to try
Anxieties (What If...?)
- ⚠Will I lose my data?
- ⚠Is learning curve too steep?
- ⚠What if team does not adopt it?
- ⚠Can it handle complex sheets?
Habits (Current State)
- ■I have 10 years of Excel muscle memory
- ■All my templates are in Excel
- ■Boss expects .xlsx files
- ■Comfortable with current workflow
How to Reduce Switching Costs
Reduce Friction:
Time: One-click import, automated migration
Learning: Familiar UI, interactive onboarding
Data: Import from competitors, keep history
Increase Pull:
Free trial: Try before committing
Quick wins: Show value in first session
Social proof: "Join 10,000 switchers"
Switching Happens at Moments of Pain
People do not switch when your product is better. They switch when their current solution fails them badly enough that the pain outweighs the switching cost.
Key Takeaways
- •Switching costs: time, money, learning, data, social, emotional.
- •People switch when push + pull outweigh anxieties + habits.
- •Reduce friction: automated migration, familiar UI, quick wins.
- •Increase pull: free trials, show value fast, social proof.
- •Switching happens at moments of pain, not when you launch.