Customer base definition
What is the definition of "customer base"?
A customer base represents the current flow of customers that a business can reasonably expect will consider it as an option when planning a purchase. It's different from a customer list, which often identifies all of the customers a business has ever done business with, many of which may not be providing current sales.
The customer base for a retail store would be the customers who currently frequent the store. For a wholesale business, it would be the retailers who have a buying relationship with them. The customer base for an attorney, dentist, plumber or other professional service providers would be those clients who give repeat business.
Understanding the makeup and needs of your customer base makes it easier to provide proper service, develop new products or services, enhance sales volume and maximize margins.
Properly managed, a customer base can be leveraged as the foundation for future revenue and profit margin growth.
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