Customer Base

Posted in Marketing and Strategy Terms, Total Reads: 343

Definition: Customer Base

A customer base is the people, groups, entities or organisations who purchase the company’s product or services. A customer base encompasses a broad range of customers which the company wants to target and consists of those customers who make repetitive and frequent purchases of the products of the company.


A customer base is usually the target market for the companies from which they can maximize their sales and earn maximum revenues. The company can ensure higher participation of these customer bases by conducting research (primary and secondary) and based on their previous interactions with them. By retaining and servicing the loyal customers the company can increase the revenues than finding new customers.


We can consider two types of firms who can approach their customer bases differently. Let us consider a start-up or a firm who wants to divest and attract new firms. Such firms do not have a present customer base and need to spot and find the exact ones to whom they want to target. Their target customer base needs to be engaged and made aware of their products and offering through various marketing methods. The other type of firms are those who want more revenues from their existing customer base. In these cases, the firms should narrow their approach to increase their services to the repetitive customers of the customer base as it is more costly to gain a new customer than to retain an older one.


The challenge lies in identifying the right customer base in whichever of the above category the firms fall in. For e.g. an automobile manufacturing company needs to target those who can afford and want to buy cars and not those who do not need or want a car. Another example would be of cold creams. These creams are usually required in colder places. If for instance a company wants to sell these to people in desert it won’t be able to achieve good sales in that region. Hence, wasting efforts, costs and time. Thus, identification of proper customer base is important.



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