Enough with the fighting Cut your target’s switch costs, inspired by BankSwitcher

Posted by tom klein April 2, 2008


You can run all of the ads that you want and you may not get your target to do what you want. Depending on the category of product or service, sometimes it’s just too hard to overcome the switching costs. Especially in banking, now that everyone uses services like electronic bill payment. We won’t say that consumers are inherently lazy.

Think about how something like BankSwitcher might be able to help you. It’s a tool that simply makes it easy to switch from one bank to another. Users indicate what bank they currently use and which one they would like to switch to. Then, it asks you to go to your online banking site and download a detailed file of transactions and account balances. Then, it asks you to indicate which things you want to change and which ones you don’t. The point here is that there’s more than one way to skin a cat.

If you’re facing an entrenched competitor with what appear to be high switching costs, don’t forget that there are ways to make it easier to switch to your camp. Have you made the effort to put tools like this one in place?

This is a relatively simple site, but it accomplishes an important objective. It provides a clear process and step-by-step instructions. If you make the steps simple enough, you can walk consumers through just about anything (online tax prep comes to mind).

So few companies put much effort into helping switchers, with Apple being a notable exception. Check out their Switching 101 site aimed at anyone who’s changing to a Mac from a PC / Windows machine.

comments

2 comments

2 Comments on “Cut your target’s switch costs, inspired by BankSwitcher”

  1. Hi, Thanks for talking about BankSwitcher. We love that you identified the simplicity of the overall experience -- our corporate name is Facilitas, which means "easy" in Latin. Many consumer banking executives see this switching barrier as a good thing. In fact, bill payment processors sell "customer stickiness" in their pitches to banks (that's why they PAY service providers like CheckFree and give it to consumers for FREE). But I believe angry customers who can't leave will do more damage to the bank than whatever short-term profits they provide. Rob Rubin posted on
  2. Your apple 101 link has a typo and took me to appler101 - not the same. The switching topic is an accurrate one - I work for one of the big remaining three banks as a deposits exec and am currently investigating switching solutions to drive better new customer acquisitions. Still looking... Thanks, Scott Scott posted on

Leave a Reply

You must be logged in to post a comment.




Top 5 Internet Marketing Tools Internet Marketing Tools & Categories

Minnows 

  • No bookmarks avaliable.
more »