GUIDE 2026

Product strategies for switching costs: How I’d use them

Clement Kao
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Clement Kao
Clement Kao
Clement Kao
Clement Kao is Co-Founder of Product Manager HQ. He was previously a Principal Product Manager at Blend, an enterprise technology company that…
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Switching costs are real strategy—not a dirty trick by default. I'd use them to reward continued value, not to trap unhappy customers.

Levers I'd consider

  1. Data gravity: history, workflows, integrations that get better over time
  2. Network effects: value rises with participants
  3. Learning curves: mastery the user doesn't want to re-earn elsewhere
  4. Contracts/procurement: honest enterprise reality—not dark patterns
  5. Ecosystem: apps, partners, templates

Ethical line I won't cross

Healthy Sketchy
Export exists; staying is still better Hostage data formats
Habit from value Punitive cancellation mazes
Integrations deepen outcomes Compatibility sabotage

High switching costs with low satisfaction is churn debt. I'd rather earn retention.

Technical and platform PMs hit this often—Technical PM Certification helps frame platform bets.

More in the newsletter.

Clement Kao
Clement Kao
Clement Kao is Co-Founder of Product Manager HQ. He was previously a Principal Product Manager at Blend, an enterprise technology company that is inventing a simpler and more transparent consumer lending experience while ensuring broader access for all types of borrowers.