How do you define your ideal customer base?īefore you can start strategizing about growing your customer base, you’ll need to clearly define what your ideal customer looks like. Either way, they’re loyal to you, and that’s what defines a customer base. These shoppers may be loyal to your brand for a number of reasons: it could be because you offer them a product they want or need, because your brand’s messaging resonates with them, or they enjoy being involved in your brand community. When you have shoppers who consistently engage with your brand that fit your target market or ideal customer persona, you have a strong customer base. Your customer base will be the key to your brand’s success, so learning about it and strategizing early in your business’ lifecycle is essential.ĭon’t worry-we’ll explain everything about a customer base to you, so you can start to strategize how you're going to grow and retain it! Ready to get started? What is a customer base?Ī customer base is simply defined as your most loyal and engaged customers. There are many reasons why growing your customer base is beneficial for your brand, but the most important reason is to start making sales to boost your revenue. You may be wondering what a customer base is, and why you should be interested in it. Using this figure with our estimated forward P/E ratio of 30x, this works out to a price estimate of $155 for ADP’s shares, which is slightly below the current market price.So you’ve launched your ecommerce store now what do you do? It’s time to build your customer base, of course! Based on our forecast, ADP’s adjusted EPS for full-year 2019 is likely to be around $5.17.ADP also expects New Business Bookings to now grow 8-9% for fiscal 2019 – up from the earlier guidance of 6-8% The company expects revenue to improve 6-7% compared to 2018, while adjusted earnings are expected to grow 19-20% – up from the previous range of 17-19%. ADP’s management raised its outlook for fiscal 2019 in view of strong expected growth across segments.These initiatives should help APD differentiate its offerings from competitors while also helping it consolidate its leadership position in the payroll processing industry. ADP recently launched a new brand initiative under the name “What Are You #WorkingFor?” Though, no initiative is individually significant enough to call out, collectively they help to drive net productivity improvements across the business. Additionally, the company is focused on launching new innovative products that help simplify complexities for their clients and their workers.With a large and growing customer base and a high client retention rate (over 90%), the company is in a strong position to generate sustained revenue growth in this segment. We forecast revenues for this segment to increase in mid single-digit range in the near term primarily driven by an increase in New Business Bookings and expected benefits from earlier acquisitions.The segment’s margin expanded by 230 basis points primarily due to improvements in the overall cost base, partially offset by foreign exchange headwinds. In Q3, the company’s revenue from its payroll processing services increased by approximately 3% compared to the prior-year quarter thanks to 10% increase (y-o-y) in Employer Services New Business Bookings. While ADP’s PEO Services business has driven much of its top-line growth over recent years, payroll processing continues to be its core business – contributing approximately 66% of total revenues.Payroll Processing Remains The Core Business
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