Who Is An Internal Customer & An External Customer?
Your customers don't only include people who enter your establishment or
place orders by telephone or the Internet. Customers also include those who
work every day to make your operation a success: your employees. While external
and internal customers may fulfill different roles, both are critical to the
viability of your business.
Identification
An external customer is someone who uses your company's products or services
but is not part of your organization. If you own a retail store, for example,
an external customer is an individual who enters your store and buys
merchandise. An internal customer is any member of your organization who relies
on assistance from another to fulfill her job duties, such as a sales
representative who needs assistance from a customer service representative to
place an order.
External Customer
Significance
External customers are essential to the success of any business, as they
provide the revenue stream through their purchases that the enterprise needs to
survive. Satisfied external customers often make repeat purchases as well as
refer your business to other people they know. A customer who suffers through a
negative experience with a business, such as being treated rudely by an
employee, can also hinder a business by dissuading others from patronizing it.
Internal Customer
Significance
While internal customers may not necessarily purchase the products or
services offered by their employer, the internal customer relationship also
plays a key role in the business's success. In the sales example, the
salesperson who does not work well with customer service may have greater
difficulty placing orders or obtaining answers to his external clients'
questions, resulting in a poor level of service. Strained internal
relationships can also adversely affect company morale.
Considerations
As a business owner, you may have a natural tendency to focus on the
relationship with external customers, as they are the ones who purchase your
products and services. Still, seeking ways to improve internal customer
relations can lead to a healthier work environment. You can take steps to
improve internal relations by training employees to think of co-workers in the
same manner as external customers and provide the same high level of service.
Set an example by showing appreciation for your employees' efforts and
encouraging their feedback.
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