Customer Relationship Building Module 1

Defining the Customer

• A customer is someone who purchases a good or service, for themselves or for somebody else.
• Customers can make one or more purchases.
• Some customers are loyal to certain brands/stores, while others choose to shop around.
• A successful business is one that knows its customer to meet and anticipate their needs.
• Market research is crucial to understand a business' potential customer base and their needs and expectations.

Customer vs Consumer vs Client

• A customer is the purchaser of a good/service.
• A consumer is the user of a good/service, often targeted by marketing efforts.
• A client is used in the context of business-to-business transactions/interactions (B2B) and in service organizations providing legal, healthcare, consulting, etc. services.
• Note: Customers who buy services are not commonly referred to as consumers.

Internal Customer

• An external customer is a customer who pays for a service and can switch to another service provider if unhappy.
• An internal customer is internal to an organization, doesn't usually pay for the service, and doesn't have a choice of changing their service provider.
• Internal customers are employees who provide services to each other and are internal customers and internal service providers.
• Examples of internal customers include individuals who receive services from colleagues, franchisees, or business partners.
• Internal customers are important because their dissatisfaction can be passed on to external customers, resulting in negative outcomes for the business.

The Customer Relationship

• A customer relationship is the ongoing relationship formed between the customer and organization over time.
• This relationship is built through customer engagement via marketing, sales, technical help, customer service, and after-sales service.
• A customer relationship is measured by the customer's satisfaction throughout the purchase cycle and after receipt of goods/services.
• Key elements of a successful organization include having loyal customers who repeatedly bring business to the organization.
• Customer loyalty is crucial, as it results in repeat business, rather than one-off purchases.