Customer base is the group of clients to whom a business markets and sells their goods or services.
Companies study their customer base to cater their products and offers in efforts to improve sales. Companies can expand their customer base as a way to increase sales.
A customer base is often a targeted demographic or group of people with similar interests, which make their interest in a product or service more likely. Repeat buyers in a customer base often return to a company that has successfully filled their needs. These repeat customers may make patronage of a company habitual. These customers often serve as free marketing by way of word of mouth, providing they remain satisfied.
Customer bases can be wide or tall. A company that has many customers that make several small purchases is said to have a wide customer base. Wide customer bases have broad appeal and may consist goods and services needed on a regular basis such as food, office supplies and cleaning products. Companies with a smaller amount of customers that make fewer and larger purchases are said to have taller customer bases. Tall customer bases need more care and lead nurturing. The development of relationships with these important customers is often a part of a company's sales and marketing strategy.
This was last updated in January 2019
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