'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 ways the expression is used are good indicators:
Good customers are also a market segment. The core clientele of a business are used to define the marketing issues for businesses.
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 good customers form an entire description of the nature of the business.
In response to the good customer survey, DEFG:
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.
Good customer service is also part of the paradigm. Many businesses develop customer service strategies and policies on the basis of customer retention.
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.
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.