This article is about customer base of the market.
Successful Marketing requires firms to understand which market they are operating in, who their consumers are and where they are located, whether the market is growing or shrinking, what the business’s share of that market is and how strong the major competitors are.
What is meant by customer base?
Customer base is the number of potential customers in the particular market.
Potential customers are people who are able to purchase the product from your business. They have the financial capacity and willingness of becoming your customers in the future.
Customer base is an alternative way of measuring market size in addition to Volume of Sales and Value of Sales.
Why is customer base important?
Customer base can help to measure the size of the market – both the potential current market size and the potential future market size.
Secondly, finding out how many potential customers the business might soon have can help with estimating how much the firm can boost its revenue. Possibilities of selling more goods and services are in this case very high.
Customer base can assist in forecasting recurring revenue as these customers have the highest chance of becoming the firm’s loyal customers.
In summary, the economic growth of China and India in recent decades as well as the growing importance of Africa has broadened the customer base for many businesses, especially large multinational companies from the U.S. This is mainly due to the large number of people living in those countries.
Additionally, the widespread of the Internet around the whole world also expanded the customer base for many businesses including both small businesses and large firms.
