Customer definition
/What is a Customer?
A customer is an entity that buys goods or services from third parties. Accumulating a profitable and recurring group of customers is the primary goal of a business, since this group generates revenue for the business.
A company that wants to remain profitable will closely follow the satisfaction levels of its customers and change its practices to match their requirements, so that they are willing to continue placing orders. Otherwise, a company must continually expend funds to locate new customers, which is an expensive proposition.
External Customers vs. Internal Customers
An external customer is an independent third party that purchases goods or services from a seller. Conversely, an internal customer is a person or functional unit within a business that uses its goods or services. Given these definitions, there are three main differences between external customers and internal customers, which are as follows:
Connection to the business. External customers are not part of the organization, while internal customers are employees or departments within the organization.
Purpose of interaction. External customers drive the revenue of the organization, while internal customers help facilitate operations and the general level of productivity.
Customer service goals. For external customers, the goal of the organization is usually customer satisfaction and loyalty that leads to repeat business, while it is operational efficiency for internal customers.