We rely on our relationships with service providers as a matter of course—think of the way your cell phone plan or an airline can make or break your day. As a result, consumer-oriented companies contend with both the constant threat of losing disgruntled customers to their rivals and the enticing prospect of poaching other disgruntled customers. Indeed, the high switching rates that run rampant through service industries can snowball into dwindling sales, shrinking market share, and steeper marketing costs for struggling firms; those that excel at persuading consumers to sign on with them, however, can reap the benefits of expanding their customer base and hurting their competitors in the process.
In recent years, many firms have acknowledged the turbulent nature of the service sector by emphasizing some type of switching-is-easy mantra in their advertising campaigns.
