Definition of Customer Base



Customer base or client base is the group of customers that pay a business and generate revenue for a business. For a telecommunication business, the customer base will include all the users of the telecom services that a company provides.

 


For any business, a customer base is the most important element of the cash flows and revenues. If a company has large inventories available for sale but it has no customers to sell its products to, there will be no revenues. The customer base is also identified as an intangible asset, but most of the internally generated assets are not recognized in the balance sheets as it is not allowed by accounting standards.


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