Stategy Dynamics Briefing 26: Three ways to change resource quality

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The previous briefing looked at how adding larger customers and removing smaller ones can raise the average size of a firm’s customer base. To these mechanisms must be added a third element. What is it?

The third mechanisms that must be added is raising the size of customers that remain with the organization over time. This may arise if the customers themselves increase their purchase rate – perhaps consumers increase their demand for your product, or in the case of business-to-business ...

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