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Understanding Internal and External Customers in Business, Study notes of Business Economics

The difference between internal and external customers in business. It defines customers and consumers and highlights the importance of customer understanding. It also discusses the characteristics of customers and how to serve them according to their character. Additionally, it covers customer buying motives and groups customers based on professions and industries. valuable insights for businesses to develop and succeed.

Typology: Study notes

2021/2022

Available from 02/16/2023

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Difference between Internal and External Customers
Internal and External Customers Customers can come from institutions, institutions,
organizations or people who buy products and services at a company regularly and
continuously. This is because the products and services purchased by these customers are
considered to have benefits or provide benefits.
In a business, getting customers is certainly one of the reasons for the company to make a
profit. So, the existence of customers will certainly be profitable for a company.
Customer Understanding
In the business world, the term customer is certainly familiar to sellers of goods and services.
Customers can be interpreted 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 production or users of services. A consumer can be
defined as a buyer who buys goods or services in small quantities, for personal gain.
From these two definitions, it can be clearly known the difference between consumers and
customers. Customers are buyers who use services or goods permanently in large quantities.
However, consumers are buyers who buy or use services for personal interests only.
In addition to the general understanding of customers, experts also express opinions about
the meaning of customers.
Greenberg (2010) argues that a customer is an individual or group who buys products
physically or services by considering various factors, such as quality, price, service to place
and so on according to personal decisions.
Nasution (2001) argues that a customer is all people who buy certain products in the form of
goods and services.
Customers exist in two types or have two properties, namely internal customers and external
customers. Check out the meaning of each type of customer.
Definition of External and Internal Customers
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Difference between Internal and External Customers Internal and External Customers – Customers can come from institutions, institutions, organizations or people who buy products and services at a company regularly and continuously. This is because the products and services purchased by these customers are considered to have benefits or provide benefits. In a business, getting customers is certainly one of the reasons for the company to make a profit. So, the existence of customers will certainly be profitable for a company. Customer Understanding In the business world, the term customer is certainly familiar to sellers of goods and services. Customers can be interpreted 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 production or users of services. A consumer can be defined as a buyer who buys goods or services in small quantities, for personal gain. From these two definitions, it can be clearly known the difference between consumers and customers. Customers are buyers who use services or goods permanently in large quantities. However, consumers are buyers who buy or use services for personal interests only. In addition to the general understanding of customers, experts also express opinions about the meaning of customers. Greenberg (2010) argues that a customer is an individual or group who buys products physically or services by considering various factors, such as quality, price, service to place and so on according to personal decisions. Nasution (2001) argues that a customer is all people who buy certain products in the form of goods and services. Customers exist in two types or have two properties, namely internal customers and external customers. Check out the meaning of each type of customer. Definition of 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 part of the company. To be clear, here is the understanding of external customers as well as internal customers. External Customers External customers are groups or people who are outside the company and receive products from the company. External customers in each company, 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. Compatibility between the needs of products and services. The quality of products and services. Competitive prices between companies with each other. Timely delivery and service. So who are included as external customers of a company? External customers are, a) people or organizations that are not part of an enterprise. b) external customers are customers who are affected by the product, but are not part of the member of the company that produces the product. c) External customers include product buyers, government agencies and the public. d) pidak who utilize and buy products and services from the company. e) intermediary customers or intermediary customers. Internal Customers Internal customers, in contrast to external customers internal customers are often difficult to distinguish from external customers whose definition is clear. Because, in company relationships and internal customers, it is generally unofficial and causes a blurring of who the internal customers really are. Internal customers can be interpreted as groups or people who are within the company and have an influence on the performance of the work they do. There are a few things to be aware of from internal customers. Here's the explanation.

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

  1. External and internal customer proximity 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 to bid at reasonable prices and get cheaper prices than external customers. External customers, on the other hand, have no personal relationship or closeness to the seller or company. So it will be difficult for external customers to get an easier price or win a quote.
  2. External and internal customer advantages Internal customers will generally get greater profits. Because, even though they don't manage to get cheaper prices, generally internal customers will get promo prices or offers that external customers can't get. For example, 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, but both customers want to always get products with good quality. Don't care about the customer's personal proximity to the company. Briefly, both internal customers and external customers are potential buyers who will benefit the company. Internal customers are buyers who have a relationship with the organization and where consumers get the product. While external customers are buyers who have no affiliation at all with the company where the buyer buys certain products or services. Internal and External Customers

Customers certainly play an important role so that a company can develop and succeed. Therefore, knowing who the customer figure is to the characteristics of the customer who will buy the product is important. Customer Characteristics Without customers, the business of the company or seller will not develop and advance. 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 customer characteristics that need to be known in order to be able to advance the business. New customers, are customers who have the characteristics of often asking various questions and become customers who have the potential to become repeat customers in the future. Potential customers, are customers with the characteristics of showing interest in a product. This interest, has considerable potential where the customer will become one of the loyal customers. Customers are impulsive, have the characteristics of often being spontaneous when buying a product. Impulsive customers also don't need to be over-persuaded to convince customers to buy something. To satisfy impulsive customers, it only takes convenience to reach a product. Thrifty customers, the characteristics of saving customers generally prefer products that are in special offers such as discounts or certain promos. Customers with this feature, will generally be reluctant to buy a product at a normal price. Loyal customers are customers who have characteristics, when finding the right product, this customer will be reluctant to move from one product to another. In addition, loyal customers will give recommendations regarding the products he likes to his colleagues. Spontaneous customers are customers who have the characteristic of only buying a product once and dealing with the seller when he needs a service or product that is sold for personal gain. Generally, spontaneous customers do not think about anything else, other than being able to meet their needs alone.

  1. Customers with old age Generally, older customers do not keep up with the times, are difficult to persuade on the offers of officers, are more friendly and more often linger when deciding to buy goods. The most appropriate way to provide service to elderly customers is to provide understanding.
  2. Quiet customers For quiet customers, it is more difficult for them to express an opinion 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. For example, wanting to satisfy yourself, meet personal needs or other things. Here are the customer motives to know. Motive, can be interpreted as a driving force that moves a person 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. Emotional motives, namely motives that include hunger, personal desires, fulfilling thirst, fulfilling personal misery or will, guarantees of feelings of love, prestige, status, pride and so on. Rational motives are customer motives which include price and considerations, uses or benefits of the product or service offered, the strength of the product, the efficiency of the product or service and so on. From these two motives, customers can be grouped according to three types, including the following. Customer groups based on professions such as experts in certain fields, business people and so on. Customer groups from industries that include companies, certain industries and others.

Individuals include social classes such as those from the upper class such as wealthy businessmen and officials. The menenga class, the 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 in accordance with their motives.