Dexcom Wearable Lock-In
How a tiny arm sensor that costs $150 every fourteen days creates 100% customer retention — because switching means losing your entire glucose history and health insights.
Dexcom makes continuous glucose monitors. A small sensor on your arm transmits blood sugar to your phone every five minutes. For diabetics, it's life-changing. The sensor costs $150, lasts 14 days. Customers commit to roughly 3,000 yearly. After one month, switching is impossible. The data lives on Dexcom servers. Your entire glucose history, trends, patterns, and machine learning models are Dexcom data. A competitor's device has the same accuracy, but zero history. You'd lose context, trends, and algorithmic insights built on your data. Switching cost is informational, not financial. Dexcom realized this was the moat before building hardware. They focused on software, data interpretation, alerts. They built machine learning models that improved with more data.
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