Core customer

A customer whose pricing and cost-to-serve requirements will allow the company to earn at least its cost of capital on sales made to the customer through the business cycle.
(See also Near-Core Customer, Non-Core Customer)

Example 1:

Centex will be focusing its efforts on cracking the city markets, where the largest potential market is.
(Year 1997-SIC 1521)

Explanation: Centex is focusing on geographic areas with concentrations of customers where it can make a good profit. These areas would be Core customers for the company.

Example 2:

A Pabco executive described his company's strategy as "growing with the customer," stating that the company would rather gain share from within a relationship than go out and target new customers. Pabco is then given additional volume because of its past good relationship. As a result of its direct sales, Pabco has a strong representation among contractors. Through word of mouth, other contractors started asking distributors to stock Pabco board.
(Year 1995-SIC 3270)

Explanation: Pabco has decided to grow with its Core customers, those with whom it already has established a good, profitable relationship.

Example 3:

Compaq resisted the temptation to branch out too far from microcomputers. It also maintained strong relations with dealers by not setting up its own sales force.
(Year 1987-SIC 3571)

Explanation: Compaq's better dealers were its Core customers.

Example 4:

Berlitz's strength is in its corporate accounts, which make up 60% of its business.
(Year 1991-SIC 8200)

Explanation: Berlitz is set up to deal most effectively with corporate purchasers. The better corporate customers make up the bulk of its Core customers.