Customer Profile

The customer profile of a market is frequently an important consideration, including the question of how diverse or consolidated the customer base is. For instance, you may shy away from acquiring a prospect that serves the automobile manufacturing industry because it can supply only three major customers. The kind of customer a market serves is also significant: If your experience is exclusively business-to-business, you may think twice about buying a retailer. Your acquisition team may also wish to assess the switching costs for customers in the markets under review—a basic measure of customer loyalty.

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