Identifying Your Clientele: Who Constitutes Your Customer Base?
In the realm of business and service provision, the traditional definition of a customer has been expanded to encompass a broader scope. This shift in perspective is aimed at recognizing and valuing the various roles that individuals and organizations play in the exchange of goods, services, and value.
A customer, according to this expanded view, is not merely a person who purchases a product or service. Instead, a customer is anyone who engages in a transaction or relationship with a business or provider. This can include buyers, consumers who use the product, clients receiving ongoing personalized services, repeat or loyal patrons, and even members or subscribers contributing to a company’s revenue stream.
This broadened definition highlights the economic actor that a customer represents, driving business activity. It is not uncommon for individuals or organizations to repeatedly engage in buying or interacting with a brand over time, forming part of the business’s customer base.
In service industries, customers can also be referred to as clients, implying a longer-term relationship involving tailored, ongoing services rather than just transactional sales. A customer persona or archetype, which represents the ideal or representative profile of a target customer, further demonstrates this expanded view. This profile incorporates behaviors, motivations, and needs, emphasizing the customer's relationship, experience, and engagement with a business beyond just purchase.
Moreover, the economic role distinguishes between a customer (buyer) and a consumer (end user). Consumers may or may not be direct customers if they do not perform the purchase themselves, broadening the concept further.
It is important to note that it is possible to be both a supplier and a customer in the same process chain. For instance, within an organization, a department might serve another department, making them suppliers to each other. Similarly, a student's parents can be external customers to a school teacher, as they are the recipients of information and updates about their child's progress.
Great organizations understand that everyone they interact with, whether internally or externally, has the potential to be a customer. Internally, it is essential to deliver great service to every member of the organization, ensuring that everyone knows they are valued and served well. By adopting this mindset, organizations can foster a culture of excellence and customer-centricity, ensuring that every interaction contributes positively to the overall customer experience.
In this expanded view, a customer's role extends beyond just making a purchase, as they can be anyone involved in a transaction or relationship with a business or provider, such as clients receiving ongoing services, repeat patrons, or even members contributing to a company's revenue stream. Furthermore, in the realm of finance, education, and self-development businesses, a customer can be an individual or organization engaging in a transaction, whether buying a product, subscribing to a service, or participating in a course.
