TOPIC 2

UNDERSTANDING THE CUSTOMER

• Customer Defined
• The importance of Customer to a Business
Organization
• The Differences among Customer, Consumer and
Client
• Types of Customers
• Characteristics of a Modern Customer
• Needs, Wants and Demand of Customers
• Customer Perception
 2.1 Customer Defined
• Customer is an individual, group of individuals
or an organization that receives or may
receive goods, services, products or
ideas from another individual or a company in
return of value which can be money or
anything of equivalent value.
2.2 Importance of Customer to a Business
Organization
• Customer forms the backbone of business.
• Usually more is the number of customers,
more is the business thriving and vice versa.
• Business needs customers to buy their
products or services.
• A customer may not be buying your product
right away but may buy it in future but still
remains part of your target customer group.
 2.3 The Differences among Customer, Consumer and Client

• Almost synonymous terms consumer, client,

and customer are mainly used
interchangeably. However, there’s a blurry
distinction among these terms.
 Customer
• A customer is a person or organization that
purchases goods or services from a business.
This term is typically used in the context of a
commercial transaction. Customers are
focused on obtaining a product or service in
exchange for payment. The relationship
between a customer and a business is
primarily transactional.
 Consumer
• A consumer is a person who uses or consumes a
product or service. This term is broader than the
customer and can refer to anyone who uses a
product, whether they purchased it or not.
• For example, someone who receives a gift or
samples of a product in a store would still be
considered a consumer. The focus of a consumer
is on the experience of using a product or service
rather than the transaction itself.
 Client
• A client is a person or organization that receives
professional services from a business, such as legal
or financial services. The client and business
relationship is typically more long-term and
advisory. Therefore the client may rely on the
expertise of the business to make crucial
decisions.
• Unlike a customer, a client may not necessarily
purchase a tangible product but instead seek
expertise or guidance in a particular area.
2.4 Types of Customers
• Potential Customers • Intermediate
• Loyal Customers Customers
• New Customers • Impulse Customers
• Discount Customers • Need-based
• Former Customers Customers
• Internal Customers • Wandering Customers
• External Customers
 2.5 Characteristics of a Modern Customer

• Knowledgeable
• On the lookout for solutions if stuck
somewhere with your product. You need to be
always available.
• Customers are social creatures. They can get
recommendation from someone else.
• Love to stay connected with you
• Customers have opinions too.
 2.6 Needs, Wants and Demand of Customers

• Needs are things that satisfy a basic

requirement.
• Wants are requests directed to specific types
of items.
• Demands are requests for specific products
that the buyer is willing to and able to pay for.
 2.7 Customer Perception

• Customer perception is the customer's overall

opinion, thought, awareness and feelings
about a company and its product and service
offerings.
• Customer perception refers to the process by
which a customer selects, organizes, and
interprets information/stimuli inputs to create
a meaningful picture of the brand or the
product through various stages.