As a leader, you are likely well-acquainted with your organization’s financial statements and management reports, often spending significant time on budgets and expenditures. However, how often do you consider that these revenues come from actual customers—those who pay for your products and services? Experts Peter Fader, Bruce Hardie, and Michael Ross guide you toward understanding customer buying behavior and the health of your customer base. A customer-base audit systematically reviews the buying behavior of customers using transaction data. It addresses critical questions such as: How healthy is your customer base? Are your growth objectives realistic? How do customer behaviors and values differ? How has customer quality evolved over time? What behavioral changes contribute to fluctuations in firm performance? What matters most to high-value customers, and which products help attract and retain them? The authors introduce five “lenses” for executives to analyze these questions, emphasizing that relevant insights often exist across various parts of the organization but are rarely compiled or regularly assessed. Without a systematic understanding of this essential cash flow source, informed decision-making becomes challenging. Fader, a Wharton professor and author of influential works on customer centricity, helps leaders gain a foundational grasp of customer behavior, setting the stage for a deeper connection with their
