0:23
Eric Siu explains how agencies can keep clients by creating switching costs. Embed multiple services and build regional presence so clients find it harder and more expensive to leave.
Eric Siu explains how agencies can keep clients by creating switching costs. Embed multiple services and build regional presence so clients find it harder and more expensive to leave.
Most people think agencies don't have a moat. I would say the one thing that agencies do have, especially as you get bigger, you have to think about switching costs. And switching costs mean like the more services you're embedded in and the more locations or regions you're embedded in, the less likely they are to churn, right? Because you're entangled in so many different things. That's how you want to think about if you want to continue to grow. How do you layer in switching costs where it becomes a pain in the butt if even someone better comes along? Like you make it hard for them to switch.
