StudiesUnderstanding Switching Dynamics: Maximizing Customer Retention in the Life Sciences When a customer decides to use products from a different brand rather than their existing brand they incur switching costs, the holdups or expenses that occur as a result of this decision. Switching costs may include the loss of good relationships with existing sales reps, obstacles with new vendors that lack institutional purchasing agreements, the possibility that a product from a new vendor is not fully compatible with an existing protocol, or the loss of money or time invested to ensure the existing product is optimized with specific instrumentation. To better how understand why members of The Science Advisory Board would consider switching from one brand to the next, we surveyed over 2,000 members to inquire about the factors that may influence their decision, such as price savings, customer loyalty programs, immediate product availability, and product quality. Life Science Market Dynamics Life science companies have relied on switching costs to prevent customers from purchasing products from their competitors. Many life science companies may offer discounts, incentives, or special rewards in their attempt to appeal to new customers and reduce switching costs. Until now, the effectiveness of such strategies has not been evaluated on an industry-wide level. This report examines scientists' experiences with 46 leading life science vendors, and is designed to help life science executives better comprehend the factors that affect the balance between customer switching and customer retention. Attracting and Growing Your Customer Base For life science executives who wish to strengthen their customer retention strategies, this report provides insights into preventing and controlling customer problems while maximizing competitive advantages. It also includes an additional section on ways to build an effective customer loyalty program.  [ View Current & Future Studies ] [ View Past Studies ] |
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