Active Customers - Definition & Meaning

Published in Marketing and Strategy Terms by MBA Skool Team

What is Active Customers?

A customer of the firm if he does repeat purchase of that firm’s product and is expected to buy at least once in every 12 months duration. These are the people who maximizes the company’s revenues and thus the company’s works upon to retain the customers by enhancing their experience and providing discounts.

The following the attributes of an Active customer:

1. Customer who is active in payment

2. Real activity of the customer can be measurable

3. Customers whose sign up remains active

Steps for Active Customer Experience Management:

Step 1. Customer life cycle stage identification: From the first purchase which the customer makes to reach the products he becomes a lead, till he stops purchasing that product, the customer lifecycle has several stages. By helping to bring in more customers, he can becomes a strong follower of the products and services rather than leaving it. The customer life cycle stages are – To Reach, To Acquire, To Develop, To Retain, and To Inspire. At each stage it is useful to group customers & classify as their needs and expectations differ very rapidly. Deemed to me important business processes vary on which stage of the lifecycle they are in.

Step 2.Determine Business Processes that are Customer Facing: Customer gets definitely impacted, even if those processes that may or may not require to contact the customer directly. They differ for different companies and industries.Inorder to develop a systematic structure to maintenance, manage customer relationship initiation, and termination.

Step 3. Identify Customer Facing Processes Key Events: In order to find customer’s opinion about the organization by their experiences and by providing advice and assistance and using customer insights.

Step 4: Configure & Manage Alerts: In the customer life cycle with every particular event, appropriate action is associated in the form of alerts.

Step 5: Develop A Plan for Customer Action: In order to avoid the risk of under-serve’ to high valued customers and ‘over-serve’ to low potential customers

While developing the Customer Action Plan we need to consider–

• Type of Customer

• Customer life cycle Stage

• Customer segment


Hence, this concludes the definition of Active Customers along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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