Switching Costs
DEFINITION
The effort, time, money, or risk a customer must incur to move from your product to a competitor — higher switching costs = stronger retention.
In depth
Switching costs in SaaS come from integrations (the more systems connected, the harder to leave), data (years of history locked in), workflow habits (team muscle memory), and training (certifications, onboarding).
Internally, build the product such that value accumulates over time — every day used makes switching more expensive.
Related terms
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Last reviewed 14 April 2026 by Abhi Verma.