Up and Downside of Increasing the Total Number of Active Customers

 

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Conventional wisdom says that the more customers that an organization has, the higher its revenue will be. But is more customers always better?

To better understand the value of the total number of active customers--and what drives and restrains a higher volume of active customers--APQC conducted correlation analysis on its Open Standards Benchmarking┬« data in Sales and Marketing. This article identifies operational characteristics and marketing channels that relate to increasing or decreasing the volume of active customers. Additionally, this article examines the effects of higher volume of active customers on operational efficiencies, sales opportunities, and revenue.

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