Exploring Early Customer Portfolios of Start-ups: Capturing Patterns of Relationship Development States

Abstract

This chapter explores patterns of relationship development states in the early customer portfolios of start-ups. Our theoretical framework combines literature on customer portfolios and relationship development states. We use this framework to analyze data on customer relationship development captured through interviews with 20 start-ups. Our main contribution is that we identify four patterns in the portfolios of customer relationship development states: Paradise lost, Pearls on a string, Picture perfect, and Persuasion. Start-up managers can use these patterns to map their current customer portfolio, to assess the degree of fit between their current customer portfolio and their strategy, and to provide input on how to strategize in a resource- efficient manner to achieve such a fit. To our knowledge, this is the first study to combine the literature on relationship development states with that on customer portfolios.