Customer extension
Customer extension develops the range or depth of business with existing customers. It can involve appropriate additional offerings, broader use or a more suitable service level. The opportunity should reflect customer needs and relationship value rather than pressure to sell whatever is available. Additional sales create value only where the associated margins, costs and longer-term effects justify them.
Worked example
A business using a basic support package chooses a relevant training service after discussing its needs. The supplier develops the relationship while assessing whether it can deliver the additional service profitably.
Common mistake
Do not confuse extension with acquiring a new customer or assume increasing sales to an existing customer always increases profit or satisfaction.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |