Customer base
From Wikipedia, the free encyclopedia
Customer base is the group of current clients and consumers that a business serves. In the most ideal situation, a large part of this group is made up of repeat customers with a high ratio of purchase over time. In many cases, the customer base is considered the business's target customer, where customer behaviors are well understood through market research or past experience. An existing product's target price would be adjusted by considering the purchase behavior of the existing customer base.[citation needed]
In the retail and wholesale industries, one might consider the customer base to be made up of the customers registered in the customer database (i.e. customer list), but this is true only in an ideal situation, including all the best customers in the list. Many times, this is not the case - most businesses may not be aware of whom their real customer base is made up of. Careful post-sales analysis is necessary to determine, if the customer database amassed over the years is truly helpful or completely worthless.[citation needed]
Companies with a customer base consisting mainly of large companies may increase their customer base by pursuing small and mid-size companies.[1]
Businesses in war zones may temporarily expand their customer base to include military personnel, but ongoing violence can drive away a local customer base.[2]
[edit] Notes and references
- ^ Weier, Mary Hayes, "SAP Intends To Triple Customer Base In Four Years", InformationWeek, 2006 December 5. Retrieved 2007 June 25.
- ^ Sabah, Zaid "Hardware stores struggle to rebuild customer base", USA Today 2007 April. Retrieved 2007 June 25.

