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Business- Example of good customer

'Good customer' isn't just an expression meaning a business's opinion of a regular paying customer. It's actually a practical business principle. In practice, a good customer is a business entity, used as the basis of defining a market segment, and modeling business profiles.

A good customer can be a range of things to different businesses:

  • The regular buyer of a lot of goods or services.
  • A liked and respected customer, with whom the business has a good relationship.
  • An expression referring to the customer base, which provides regular income for business. This version of the expression forms part of the valuation of businesses.
  • A professional relationship between a supplier and an industry customer.

The ways the expression is used are good indicators:

  • Ms. Smith is a good customer, she shops here regularly. In this case the good customer is an individual, and part of normal business.
  • Mr. Jones is a very good customer, and he told us about the damaged packaging on our products. An individual with whom the business has formed a working relationship.
  • We have a good customer base, which buys $15,000 worth of goods a week from our warehouse. This is a rule of thumb valuation, using customer business as a primary indicator of revenue.
  • ABCD Plumbing is a good customer, we've been doing business with them for years. A supplier's relationship with a regular customer.


Good customers are also a market segment. The core clientele of a business are used to define the marketing issues for businesses.

For example:

DEFG Inc is a mainstream clothing retailer. To define the business market range and segmentation, the customer base has to be identified. Good customers identify core business, therefore the demographic for the market segment is defined by the demography of these customers.

The survey of customers showed:

  • The main client base is a middle income suburban group, with young families.
  • They're regular shoppers for children's clothes up to age 15.
  • These customers form 80% of the clientele, and buy 85% of the business turnover.
  • They shop at DEFG because it's an established regional business and has good prices.
  • Some are second generation customers.

The good customers form an entire description of the nature of the business.

In response to the good customer survey, DEFG:

  • Removes stock which doesn't interest this customer base, saving expenditure and enhancing sales performance also creating more store space for better selling products
  • Concentrates on developing more lines of product to meet the demands
  • Alters its advertising to provide more information about the product ranges in the areas of demand

Good customers, in effect, drive businesses. A lot of emphasis is now placed on establishing good customer bases in modern marketing and business management. It ensures cash flow and a good level of market penetration.

Customer service

Good customer service is also part of the paradigm. Many businesses develop customer service strategies and policies on the basis of customer retention.

For example:

  • Loyalty and rewards systems are used to encourage customers.
  • Many businesses actively enhance their levels of customer service with special services for customers.
  • Senior management is tasked with ensuring good standards of service with customer complaints or issues.


Sales strategies are based on targeting the core customers, with emphasis on the price ranges for the business's market segment. This is a particularly effective class of sales strategy, based on matching turnover requirements to the market.

For example:

An electrical retailer has several lines of stock which are being discontinued. The retailer slashes prices to 10% above cost. This produces a large range of appliances at very good prices, which are naturally appreciated by the regular customers, and turns over the stock rapidly. The customers are rewarded, and the business achieves a profit as well as clearing out the inventory.

Good customers really mean good business. It's one of the more complex relationships in commerce, but it's also the primary force behind successful business.