Customer Base: Definition & Overview

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  • 0:03 Definition of Customer Base
  • 0:54 Customer Base…
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Lesson Transcript
Instructor: Shawn Grimsley

Shawn has a masters of public administration, JD, and a BA in political science.

A customer base is absolutely essential for business success. In this lesson, you'll learn about customer bases and important related concepts. A short quiz follows the lesson.

Definition of Customer Base

A customer base is simply the group of customers that you serve or hope to serve. For example, if you sell computers, your customer base includes the customers that are subject to your marketing efforts and customers that have already purchased your computers. It's to the consumer base that you sell your services and products and generate your revenue. Without a customer base, your business will almost certainly fail.

A customer base can be thought of as your target market, which is a group of consumers within a larger consumer market to which you are attempting to sell goods or services, including current and former customers. This is an expansive definition. Some definitions are narrower and only include current customers. The broad definition, however, is more useful for strategic planning because it can help a business figure out where it is going rather than where it is or has been.

Customer Base Maintenance & Growth

In order to be successful, you must be able to maintain and grow your customer base. Businesses should spend some time analyzing their current customer base and examining ways in which to enhance it. Some questions to ask include:

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