Developing and Executing a Customer-Based Strategy

December 26, 2017

Extract

Customers are the largest source of cash flow for most firms. Not surprisingly, the market value of a firm increases as the customer base of a firm strengthens. Customers provide cash flow in the form of sales, royalties, and fees. Customers help grow a firm organically by repurchasing, recommending the business to peers, inviting bids for new business, and engaging in positive word-of mouth.

A firm cannot satisfy any and every customer. To satisfy customers successfully, a firm needs to focus on its target customer segments, execute with fidelity to fulfill their needs. With relatively higher customer satisfaction, the firm can grow its customer base, and cash flow. …

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