who is an external customer who is an external customer

Who is an External Customer: 7 Interesting Things to Know

In business, we like to talk about how companies deal with the people who buy their stuff. Customers come in two main types: those who work inside the company, known as internal customers, and those who are outside; we call them external customers.

People who buy stuff from a store or company are extremely important, too. They are the people or businesses that directly purchase things or use services from a company. It does not matter if it is a big store or a small shop; they all have customers.

We will look closer at different kinds of customers and how they help businesses do well. Also, why making sure they have a good experience is very important. It’s like the strong foundation a house is built on.

1. Who is an External Customer

man smiling to woman on counter.
Image by Clay/Unsplash

In business, they are important, but who exactly are they, and how do they contribute to a company’s success? Let’s make it simple for you.

1.1. Definition of External Buyer Customer

They are people or groups who use a company’s products, like buying things or using services, and help the company make profits. You can find this customer in different places, like many shoppers and in your neighbourhood.

They also help by giving feedback based on their experiences. If things go well, they will feel satisfied, and the company will succeed. If not, they might discard the company, which can be very bad for the company and its future.

2. Difference Between External and Internal Customer

In business, customers are like superheroes who help a company excel and last a long time. But the catch is that not all customers are the same.

So now let’s talk about what makes external and internal customers different.

2.1. Understanding External Customers

Normally, they are known as the only customers and are very important to businesses. They are people or groups from outside the company who buy products or services.

These customers are the money makers because when they buy products from the company, the company earns money, which is vital to growth.

2.2. Understanding Internal Customers

Now, on the other hand, we have internal customers. An internal customer is like a hero behind the scenes. These are the employees or teams inside a company.

2.3. Differences

Different customers need different things from other teams or coworkers for jobs. Let’s see the major differences.

2.3.1. Nature of the Relationship

External customers choose to buy from a company because they want to. Internal customers have to work together because they have jobs to do within the company.

2.3.2. Needs and Expectations

People want things that work well and don’t cost too much, and they want to be treated nicely. Existing customers who have purchased wish to keep getting value from products or services.

However, internal customers have specific needs, too, like getting information on time or getting help from other teams to do their jobs well.

2.3.3.Impact on Making money

External bring in money by buying things. Internal keeps everything running smoothly, which helps the company better.

2.3.4. Sharing Thoughts and Talking

External share surveys and company conversations. Also, internal customers need good ways to talk and work together to get their jobs done right.

2.4. Balancing the Needs of External and Internal Customers

To be a successful company, you need to make both external and internal customers, including satisfied internal customers, happy, so here are some things to consider to make your customers happy.

2.4.1. Make Things Work Inside the First

Make sure internal teams can work together. This entails good communication, efficient ways of doing things, and helping employees improve their jobs.

2.4.2. Focus on What Customers Want

Find out what customers like, look at data, and make products or services that fit their needs. Happy buyers usually come back with good feedback.

2.4.3. Team Up Across the Company

Collaboration amongst various companies can improve the internal customer experience. When everyone cooperates, things are better for external ones because the offer and service increase.

2.4.4. Keep Getting Better

Smart methods like Six Sigma are always used to improve things internally and for customers.

So, by understanding this, businesses can create a friendly and customer-focused place to work and shop. It’s like having a winning team inside and outside the company!

3. Why are external customers important?

In this article, we discuss the importance of external buyers and will delve further into this topic.

They are the reason behind the success of any business or company. Understanding why they matter is very important for any organization that wants to do well.

3.1. Helping the Business to Make money

External customers are the main way for businesses to earn money. When people buy, they help the company stay strong and improve.

When external, like what they buy or the services they get, they often come back for more. They could also inform their peers about the business, which brings in extra cash.

Also, when they feel happy, they tend to stick around for a long time. This loyalty keeps growing even when the economy goes up and down.

3.2. Making Customers Happy and Loyal

Making customers happy is a big part of achieving success for a company. Loyalty is not just about one-time sales but about building a long-lasting relationship where both the customers and the company benefit.

Companies train their employees well to make customers happy, providing great support. This includes easy-to-use websites, friendly customer service, and fast product delivery.

3.3. Using Customer Feedback to Get Better

Customers have an important role in helping a company grow. When people talk about what they like, companies learn what’s good and what needs to be better.

This feedback is like a treasure chest of valuable information. Smart businesses actively seek customer feedback through direct conversations. Feedback can uncover problems and spot areas for new ideas and better decisions, and customers stay loyal.

Recognizing their importance and seeking their input helps companies create loyalty and secure long-term success in a competitive market.

4. Types of External Product Customers

Who buys things can be different in some important ways. Knowing these differences is crucial for businesses to make their product or service and brand right. Let’s look at some main types.

4.1. Regular Customers

These are people who buy things for themselves. They make up most of the customers for many businesses. Also, these customers can be people with different tastes and ways of buying things.

They usually want things to be easy to obtain, inexpensive, and quality. Businesses need to learn how to treat customers to like their products.

4.2. Business Clients

These are company employees who buy things to help them do their work. They could be factories getting materials, stores getting things to sell, and business owners needing special help.

These businesses often want things made just for them, with good prices and reliable partners. Additionally, creating strong relationships with these customers can lead to long-term deals and steady money.

4.3. Government Groups

Government groups at different levels, such as local, state, and national, are another type of external customer. Similarly, they buy many other things to do their jobs for the public.

These deals can be big and have lots of rules. Businesses that want to work with the government must understand how to build contracts and follow the rules.

4.4. Non-Profit Organizations

Non-profit organizations are a little bit different; they don’t aim to make money; they still need assistance with fundraising or technology. Working with non-profits can help businesses feel responsible for supporting their community.

In short, businesses need to know that customers can be very different, and each group wants special things and has different needs.

Businesses that understand and their help can build strong relationships and grow successfully.

5. External Customer Experiences

When we talk about them, we refer to people who buy things from a store or business. It is also very important to know how these customers feel when they use the products and things they buy or avail services from a company.

This can change how much people like the business and if it does well in a market with a lot of competition. So, look at the two main parts of their experience.

5.1. Meeting Customer Expectations

When a store or business does what customers expect, it helps build a direct relationship between the company and the customers.

They have certain things they want and hope for when they deal with the business. For example, if you order something online, you expect it to be just like the description, arrive on time, and not have any problems.

If the business does not do this, customers can be left unhappy, leave bad description reviews about the company, and stop buying from them.

To do this well, businesses need to learn from customers. They should listen to what customer say and use that information to make their products and how they work better.

5.2. What Makes Customers Happy

It is not enough just to meet what customers expect; it is even better to go beyond that and make customers happy.

To do this, businesses must consider many things that affect how much customers like them. These things can be different in every company and for various groups of customers.

Some common things that make customers happy are having good products, sharing prices, fast and helpful customer service, and a good reputation.

Nowadays, online reviews and social media can quickly make a business look good or bad. Also, a bad experience can hurt a company, but a good one can turn customers into big fans who tell others about the business.

How customers feel about a business is important for any company or organization. Doing what customers expect and understanding what makes them happy are things businesses always need to work on.

Businesses that focus most on reviews are likelier to do well and create long-lastcustomer relationshipsmers.

6. Tips to Make External Customers Happy

In the world of business, it is very important to have loyal customers who come back to your shop or company again and again.

Here are some easy ways to make sure your customers are happy and want to keep coming back.

6.1. Be Nice to Customers

One great way to make customers want to return is to be nice to them. Teach your workers to be friendly, call customers by their names, and listen when customers talk.

If customers have questions or problems, help them quickly, and when customers feel like you care about them, they will want to return.

6.2. Always Offer Good Products

It is very important always to give customers what you promise. Make sure your products or services are always good.

Use special checks to make sure things are great. When customers know they can trust you to give them good things, they will want to buy from you again.

6.3. Give Rewards to Good Customers

You can make customers happy by rewarding them for shopping with you often.

This could be a discount or other special things, and when you do this, customers will feel appreciated, and they will want to keep shopping with you to get more rewards.

6.4. Ask for Opinions and Make Things Better

It is a good idea to ask customers what they think about your business. You can do this with a survey or by just talking to them. When they tell you what they like or don’t like, use their ideas to improve your products or how you work.

When customers see that their ideas make a difference, they trust you more and want to return.

By doing these things, businesses can make customers want to come back. Furthermore, happy customers might tell their friends about the company, which helps it grow and do well.

7. Future of Customer Engagement

In the world of business, things are always changing. What will happen to how companies talk to their customers in the future?

It is a little bit like a puzzle with some exciting and tricky parts, so let’s take a closer look at it.

7.1. Technology and How Companies Talk to Customers

Imagine you have a favourite Store, and instead of someone helping you, a computer program does. This is getting quite common. Companies are using smart computer programs to talk to customers.

They can answer questions quickly and even make ads just for you. In the future, we might even wear special glasses that make talking to companies feel like magic.

7.2. Changing What Customers Expect

As time goes on, what customers want also changes. Customers want things to be just for them. If you like a certain kind of cookie, you want to see ads for that cookie, right?

Companies need to keep up with these changes. They have to think of new and better ways to make customers happy. Ultimately, the future of how companies talk to customers is technology.

Companies that use cool technology to make customers happy will do great in the future. It is like a race, and the winners will be the ones who can change and grow with the times.


Customers from outside a company are very important. They give money, help the company grow, and are known as external customers.

If a company is not satisfactory, customers might be upset and tell others bad things about the company and it is not good for the business. Customers from outside are like the engine that makes a company go.


Q1. Who are External Customers?

They are individuals or other businesses that choose to buy products or services from a company to fulfill their own needs or requirements. Also, they are like regular shoppers at a store or clients of a business, seeking goods or services to meet their specific purposes.

Q2. How can Businesses Make Them Happy?

Businesses can make customers happy by giving them amazing products and being honest about the price. Also, they help them when they have questions and have a good reputation.

Q3. Why is Feedback from External Buyers Important?

Feedback from external buyers is super important because it’s like a treasure chest full of great ideas. Also, when businesses listen to this feedback, they can make their stuff even better, which makes customers happy.

Last Updated on by Babita89


  • Piyush Sharma

    Hello my name is Piyush Sharma and I am an MJMC student and also I am an actor, dancer, writer, graphic designer, video editor and and creative artist

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    This is Babita Chaurasia, currently pursuing a degree in Psychology and planning to do a Masters. Babita is a skilled content editor and have 2 years of experience. Babita has a pure blend of knowledge and understanding in editing. In the future, she hopes to achieve great success in editing.


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