Facts That Differentiates Internal And External Customers

Differentiates Internal And External Customers

The term customers generally refer to the current or potential buyers or users of an organization’s products or services. They are also known as clients or purchasers. When it comes to management, the customers can be broadly classified into two: internal customers and external customers.

Internal customer
internal customer definition is nothing but a customer who receives a service, product or information from other units within the organization. Internal customers may not directly purchase the products or services of the organization but work within the process of the overall delivery of a product or service. The co workers within an organization who depend on each other’s work can be considered as internal customers

The practice of treating other units or employees as internal customers is used by many organizations to foster their relationship with external customers. This helps in creating awareness among the employees about the need to treat external customers rightly.

External customer
Buyers who do not belong to the organization are external customers. They purchase the services and products of the company but are not associated with the company. External customers play an important role in the success of any business, as they are a vital source of revenue which is a must for any enterprise to survive.

Satisfied external customers make repeated purchases as well as refer an enterprise to others only if they are satisfied by the service. A client who undergoes a negative experience from a business, such as a rude treatment by an employee may affect a business negatively by his reviews.

Points to consider as a business owner
A business owner may have a natural tendency to focus more on external customer relationships, as they are the ones who bring the revenue. But improving internal customer relations is also important as it is necessary for a healthy work environment. So, take steps to train your employees and improve both!

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