Client Base

What is a 'Client Base'

A client base is a company's primary source of business. A client base consists of the current customers paying for the products, or services, as well as potential customers which have a high likelihood of becoming customers. Businesses rely on this group for most of the business sales, and focus on them for developing new products, or advertising. A client base is usually defined using demographics such as age, location or gender, and can change over time.

BREAKING DOWN 'Client Base'

Developing, maintaining and expanding its client base is a major concern for any business, since without clients, the business cannot earn revenue. Strategies companies use to increase this base include networking, word-of-mouth marketing and referrals, developing a specialty or area of expertise, staying in touch with existing clients, showing appreciation for clients and consistently meeting or exceeding expectations.


Businesses that primarily provide professional services (like financial planning) tend to use the term "client base", while businesses that primarily provide products tend to use the term "customers". For example a financial planner's client base would consist of all the people who have hired her to manage their money. A CPA's client base would include of all the people and businesses whose tax returns he prepares.

RELATED TERMS
  1. Account Executive

    This term refers a person who has primary responsibility for ...
  2. Discretionary Account

    An account that allows a broker to buy and sell securities without ...
  3. Suggestive Selling

    A sales technique where the employee asks the customer if they ...
  4. Advisor Account

    A type of investment account where an investment advisor works ...
  5. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
  6. Maximizer

    A brand of customer relationship management software popularly ...
Related Articles
  1. Professionals

    Manage Your Clients' Expectations

    You can't control how they react to the market, but you can help them understand the reality of the situation.
  2. Investing

    Asset Manager Ethics: Acting In the Benefit of Clients

    Investment managers should always act to benefit the client. Learn what actions managers should take on a client's behalf.
  3. Financial Advisors

    Losing a Client Is Not Always The End of The World

    Losing a client is never pleasant for a financial advisor, but sometimes this is a better outcome than continuing the relationship.
  4. Professionals

    When (And How) To Fire A Client

    Firing the clients who take more of your time and effort than the revenue they contribute is a great way to improve your bottom line.
  5. Entrepreneurship

    Tips For Boosting Your Business

    Find out how butter up new clients, build up old files and better your bottom line.
  6. Professionals

    How Often Should You Contact Clients?

    Figuring out how often an investment advisor should contact clients is not easy.
  7. Retirement

    Helping Your Clients Face The Financial Reality Of Retirement

    Altering retirement plans is tough, but when the retiree is unprepared, it's very necessary.
  8. Financial Advisors

    Advisors Need to Talk Less, Ask and Listen More

    Financial advisors spend a lot of time giving their clients advice on how to invest their money. But what they often forget to do is listen.
  9. Financial Advisors

    How to Impress Clients: The First Meeting

    When meeting a prospective client you don’t want your first impression to be your last. Here are some tips to make sure there's a second meeting.
  10. Financial Advisors

    How to Handle Your First Meeting with a Client

    Here's what financial advisors should do in an initial client meeting to start off on the right foot.
RELATED FAQS
  1. Under the Uniform Securities Act, client information may not be disclosed to a third ...

    The correct answer is c. No authorization is needed from the client’s wife since it is a joint account. Also none is needed ... Read Answer >>
  2. Your firm is a registered investment advisor that specializes in investment management ...

    The correct answer is b: As a professional, you must be able to recognize when clients make requests for services that are ... Read Answer >>
  3. What is the point of developing a business model?

    Learn some of the benefits of developing a business model and how business models are used. Consider an example of business ... Read Answer >>
  4. Do financial advisors prepare tax returns for clients?

    Find out how financial advisors are often involved in tax planning and tax return preparation for their clients as well as ... Read Answer >>
  5. Does agency theory apply to brokers and clients?

    Learn how the existence of incentives that encourage moral hazard impacts broker-client relationships. Understand how agency ... Read Answer >>
  6. How can small businesses manufacture demand?

    Create demand for a small business product or service by focusing on the brand and market. Continue to learn offer excellent ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center