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What is the Difference Between Internal and External Customers? This is the explanation

Timesofummah.comCustomers can come from agencies, institutions, organizations or people who buy products or services at a company regularly and continuously. This is because the products or services purchased by the customer are considered to have benefits or provide benefits.

In a business, getting customers is certainly one way for the company to make a profit. Thus, the existence of customers will certainly be profitable for a company.

However, did  know that there are certain types of customers that few people know about? One type is external customers and internal customers, so what is the difference and understanding?

Understanding Customers

What is the Difference Between Internal and External Customers This is the explanation

In the business world, the term customer is certainly not foreign to sellers of goods and services. Customers can be defined as people who buy or use goods and services on a regular basis. These customers are different from consumers.

Consumers are users of goods from the results of production or users of services. Consumers can be defined as buyers who buy goods or services in small quantities, for personal gain.

From these two definitions, it can be clearly seen the difference between consumers and customers. Customers are buyers who use services or goods regularly in large quantities. However, consumers are buyers who buy or use services for personal gain.

In addition to the general understanding of customers, experts also express opinions about the understanding of customers.

  1. Greenberg (2010) argues that the customer is an individual or group who buys physical products or services by considering various factors, such as quality, price, service to place and so on according to personal decisions.
  2. Nasution (2001) suggests that customers are all people who buy certain products, either in the form of goods or services.

Customers are of two types or have two characteristics, namely internal customers and external customers. Read the meaning of each type of customer.

Understanding External and Internal Customers

External customers are customers who are affected by the company’s activities and are not part of the company. Meanwhile, internal customers are customers who are affected by the company’s activities and are part of the company.

More specifically, the following is the definition of external customers and internal customers.

1. Understanding External Customers

External customers are groups or people who are outside the company and receive products from the company. External customers in each company are generally the general public who receive products and services from the company. There are several things that must be considered regarding external customers, namely as follows.

  • Match between the needs of the product or service.
  • Quality of products and services.
  • Competitive prices between companies with one another.
  • On time delivery and service.

So who are included as external customers of a company? An external customer is, a) a person or organization that is not part of a company. b) external customers are customers who are affected by the product, but are not part of the members of the company that produce the product. c) external customers include product buyers, government agencies and the public. d) parties who use and buy products and services from the company. e) intermediary customers or intermediate customers.

2. Understanding Internal Customers

Internal customers, in contrast to external customers, internal customers are often difficult to distinguish from external customers whose definition is clear. This is because the relationship between the company and internal customers is generally informal and causes confusion about who the internal customers really are.

Internal customers can be interpreted as groups or people who are in the company and have an influence on the performance of the work they do. There are several things that must be considered from internal customers. Here’s the explanation.

  • Cooperation
  • Group work.
  • More efficient systems and structures of work.
  • Quality work.
  • Delivery of goods or services on time.

So, who can be categorized as internal customers? Internal customers are part of the company that is affected by the company’s activities. Thus, internal customers are customers who are affected as well as members or people who produce the product. Internal customers are also referred to as customers but are not buyers.

In addition to these two types of customers, there are also other types of customers, namely intermediate customers. In addition, intermediate customers are groups or people who act as intermediaries for the product. However, intermediate customers are not the end users of a company’s product.

Examples of customers are such as travel agents who have the task of booking lodging rooms for end users or such as distributors who have the task of distributing company products.

Difference between Internal and External Customers

After knowing the meaning of customers, internal and external customers, the following is an explanation of the differences between internal and external customers.

1. Who are Internal and External Customers

Internal customers come from a division, individual or employee unit who buy or receive products or materials, services, information from other units within the same company or also known as internal suppliers.

Generally, internal customers are deliberately presented by the company, with the aim of training employees to handle and treat external customers effectively. The hope is that employees will be able to realize how to work and help improve the quality of products or services.

While external customers are customers who are not part of the organization or company. That is, external customers can be anyone who does not belong to and does not have authority within the company.

2. Proximity of external and internal customers to the seller

Because it is part of the company, internal customers are more familiar with the figure of the seller or company. Thus, internal customers have the convenience of bidding at fair prices and getting cheaper prices than external customers.

Meanwhile, external customers do not have a personal relationship or closeness with the seller or the company. So it will be difficult for external customers to get an easier price or win a bid.

3. Advantages of external and internal customers

Internal customers will generally get a greater profit. Because, even if they fail to get a lower price, generally internal customers will get promo prices or offers that external customers cannot get.

Examples include special discounts for company employees that cannot be obtained by external customers or free products from the company in exchange for feedback or reviews from internal customers. These benefits, generally cannot be obtained by external customers who do not have a personal relationship with the company or seller.

Although internal and external customers are different, both customers want to always get products with good quality. Don’t care about the customer’s personal proximity to the company. In short, both internal customers and external customers are potential buyers who will benefit the company.

Internal customers are buyers who have links to the organization and where consumers get products. While external customers are buyers who have no affiliation at all with the company where the buyer buys certain products or services.

Customers certainly play an important role so that a company can develop and be successful. Therefore, knowing who the customer is to the characteristics of the customer who will buy the product is important.

So, in order to learn more about how to provide the best service for internal and external customers, there is a book that can be used as a reference. This book was written by Rizal Badudu and explains about the excellent service that is present in various companies.

Customer Characteristics

Without customers, the business of the company or seller will not develop and progress. Therefore, business owners need to know the characteristics of customers in order to be able to maintain good relationships with their customers. There are several characteristics of customers that need to be known in order to be able to advance the business.

  1. New customers are customers who have the characteristics of often asking various questions and being customers who have the potential to become regular customers in the future.
  2. Potential customers are customers with characteristics that show interest in a product. This interest has considerable potential where the customer will become one of the loyal customers.
  3. Impulsive customers have characteristics in the form of being spontaneous when buying a product. Impulsive customers also don’t need to be overly persuaded to convince customers to buy something. To satisfy an impulsive customer, it only takes the ease of reaching a product.
  4. Thrifty customers, the characteristics of frugal customers generally prefer products that are in special offers such as discounts or certain promos. Customers with this characteristic will generally be reluctant to buy a product at normal prices.
  5. Loyal customers are customers who have characteristics, when they find the right product, these customers will be reluctant to switch from one product to another. In addition, loyal customers will provide recommendations about the products they like to their colleagues.
  6. Spontaneous customers are customers who have the characteristics to only buy products once and deal with sellers when they need services or products that are sold for personal gain. Generally, spontaneous customers do not think about anything else, other than being able to fulfill their needs.
  7. Regular regular customers are customers who will buy goods or use services only to meet their needs and will return when the products or services offered make them satisfied.

Customer Character and How to Serve According to Character

also needs to know the character of each customer. By knowing the character of the customer, the company can provide excellent service so that the customer will feel satisfied and return to buy the product or use the company’s services.

In addition, by providing a touch of service that has a personal nature, it will make customers feel close. The goal is to make customers loyal to the products or services offered by the company.

Here are some customer characteristics that business owners need to know.

1. Male customer

Male customers have a character that does not like to beat around the bush. In addition, male customers are generally easier to persuade and more easily influenced by explanations from waiters. The way to provide the best service to male customers is by persuading or influencing that the selected goods are in accordance with their needs or tastes, it is better for officers not to ask many questions and only need to answer and explain customer questions.

2. Female customer

Female customers have the opposite character of male customers. Female customers are generally more verbose and more interested in trending fashions. In addition, female customers also prioritize social status and are not easily influenced by persuasion.

The most appropriate way to serve female customers is to provide enough time for customers to choose the desired product, officers need to be more patient in dealing with female customers than male customers. To win the hearts of female customers, then give special offers such as discounted prices.

3. Teen customer

The character possessed by teenage customers is that they don’t think about saving money, they are easily influenced. So, the most appropriate way is to not treat customers like children, be more patient when dealing with teenage customers.

4. Older customers

Generally, older customers do not keep up with the times, find it difficult to persuade the clerk’s offer, are friendlier and spend more time deciding to buy goods. The most appropriate way to provide services to elderly customers is to provide understanding.

5. Silent customer

For quiet customers, it is more difficult for them to express opinions clearly, besides quiet customers are usually more shy. The right way to serve quiet customers is to provide understanding, be patient and don’t need to follow the customer. Because it will cause inconvenience to customers when choosing goods.

Buying Motives from Customers

Customers buying products offered by the company certainly have certain motives. Examples such as wanting to satisfy yourself, meet personal needs or other things. Here are the motives customers need to know.

Motive, can be interpreted as a driving force that moves someone to want to do something. Thus, the buyer’s motive can be interpreted as something that moves customers to buy products and services offered by the company. Broadly speaking, customer motives can be classified into two, namely as follows.

a.Emotional motives, namely motives that include hunger, personal desires, fulfill thirst, fulfill personal                           desires or desires, guarantee feelings of love, prestige, status, pride and so on.

b.Rational motives are customer motives which include price and considerations, the usefulness or benefits                      of the products or services offered, product strength, product or service efficiency and so on.

From these two motives, customers can be grouped based on three types, including the following.

  1. Customer groups based on professions such as experts in certain fields, business people and so on.
  2. Customer groups from industries that include companies, certain industries and others.
  3. Individuals include social classes such as groups from the upper class such as rich businessmen and officials.
  4. Middle class, lower or lower class such as factory workers, employees, small traders.

Knowing the motives of buyers or customers will be useful for companies to prepare themselves with knowledge so that the goods or services offered to customers are related, so that buyers will be interested in buying these goods or services according to their motives.

That’s an explanation of internal and external customers and the differences between external and internal customers. You can find out more about customers, about service, how to create products to attract customers and so on by reading the books available at Because as #Friends without Limits, we always provide quality and original books for What are you waiting for? Immediately buy and read the book now!

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