Book of Business

Posted in Marketing and Strategy Terms, Total Reads: 442

Definition: Book of Business

Book of Business is the maintenance of close relationship with the high valued customers of a business. More informally, it refers to the list of clients of a financial advisors, salesman, insurance sales agents, private bankers, investment bankers etc and the amount of money each client generate. This list is done so that the relationship can be maintained.


A salesperson at XYZ firm has a book of business of 300 clients and 500$ in financial assets of the clients.


Amount of insurance present in an insurer’s book at a point of time


By maintaining such a book, they focus on better relationship management. There are some customers who invest highly in the business and hence provide much greater revenue than others who do not invest much. So the customer segmentation is done and the highly valued customers generating greater revenue are targeted to maintain the close relation and the low valued customer are targeted to generate greater revenue.

Book of business helps in the retention of both segments of customers to generate and meet the sales targets in a period of time.



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