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What Is an Internal Customer & a External Customer?

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❶Even if you are its sole owner, your company has many stakeholders.

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What Is an External Customer?
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External customers are our clients. These are the people, businesses and organizations outside of the company who buy products from us, give us their business or pay us for the services that we provide. The business of securing external customers drives revenue and is essential to the success and survival of an organization. The natural tendency for any company is to pay more attention to and focus on external customers, consequently placing less importance on internal customers.

As we know, it is very important to satisfy external customers. Content external customers will remain loyal to the company longer, make repeat purchases, and will refer the company to others.

Conversely, an external customer who suffers through a negative experience with the company, such as being treated rudely by an employee, can harm an organization by discouraging others from patronizing it. With the advent of social media, negative comments and reviews can be devastating to an organization. But what happens if part of a negative customer experience was the result of poor internal customer service?

What if one of our employees was, for some reason unhappy on any given day and that unhappiness was deflected onto the customer by way of poor service? In my opinion, there is definitely a direct correlation between internal employee happiness and a positive external customer experience. In order to produce happy external customers those who buy our products and services, it is important to build good customer satisfaction and rapport with our internal customers.

Well, the same applies here. Having weak links only hurts the organization. There is a domino effect between internal customer relations and external customer satisfaction. In order to produce happy external customers those who buy our products and services , it is important to build positive customer satisfaction with our internal customers.

This can be linked to a chain. Each link contributes to the overall strength of the chain and, when there is a broken or weak link, the whole organization is weakened. As they say, a chain is only as strong as its weakest link.

By striving to improve internal customer relations, an organization can build a healthier and more satisfying work environment and avoid potentially negative experiences for our external customers. Without external customers, your company would have no revenue and no reason for being in business. You design products and services with the goal of pleasing these customers and meeting their needs.

You solicit their opinions via formal surveys and informal conversations, and you may even adopt the customer service adage, "The customer is always right. When they have positive experiences with your staff and your products, they'll give you repeat business. The workplace experience your business gives your workers should be satisfying as well -- or else they'll have no reason to work for you, other than the fact that you sign their paychecks.

When your business meets employee needs, the employees come to work with positive attitudes and the intention of doing a good job. If you treat your employees badly, your workplace environment will become toxic. Your employees will perform as well as necessary to keep their jobs, but they're unlikely to go the extra mile to do creative work and come through for you in a crisis. Your employees are the face of your company -- the liaisons your customers interact with when they research products and make purchases.

Satisfied employees represent your company with integrity and enthusiasm. Their internal customer experience translates to a positive attitude toward external customers. Customers who see a friendly and engaged staff are more likely to support your business than customers who hear your employees complaining behind your back.

Workers who care do better work than employees who only want to collect their paychecks and leave. They manufacture products of higher quality and put extra effort into problem solving, thereby improving the experience of your external customers. Devra Gartenstein founded her first food business in In she transformed her most recent venture, a farmers market concession and catering company, into a worker-owned cooperative.

She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills.

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External customers buy your products and services. External customers do business with your company as employees, and their needs matter as well.

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Internal vs External Customers Internal and external customers (buyers, clients or purchaser) pertain to a potential or current buyer and user of products of an organization, also known as vendor, seller, or supplier. Majority of these people generally buy or rent products or services. Internal Customer Internal customer is a division, individual or .

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Internal customers and External customers are differing from each other in many aspects. Internal Customers are those individuals, division or employee who purchases the product of the company / organization being the part of the company in a way or other. For customer service, too, knowing the needs of your customers, whether external or internal, can help you provide the best and most specific service to each individual. But defining external and internal customers may clarify your workplace and help you decide which is best for your company.

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External customers use a company’s products or services but are not part of the company. An external customer is an individual who enters the store and buys merchandise. Internal customers are members of an organization who depend on the assistance of one another to accomplish their job. Internal and External Customers. This lesson will consider the internal and external customer, how marketing is used to build and nurture customer relationships, and will begin to build your knowledge on the customer loyalty.