Client vs Customer: What’s The Difference and Should You Treat Them The Same?
By Sam Nguyen
Drive 20-40% of your revenue with Avada
You may be familiar with the terms “customers” and “clients”, which many marketing experts use interchangeably. However, they have slightly different meanings in that the customers are offered both tangible and intangible products; meanwhile, the company provides intangible products to the client.
We will provide you definitions on two terms so that you can get a better understanding of your clients or customers and treat them better.
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Table of Contents:
- The Definitions of Customer and Client
- 4 Key Differences Between Client and Customer
- How to Know If You Have Clients or Customers
- Should You Treat Customer and Client The Same?
- Conclusion
The Definitions of Customer and Client
The Definition of Client
A client is someone who uses the services or advice of a professional individual or organization. Those who work for clients include lawyers, plumbers, freelance writers, accountants, and web designers.
Because a client deals with services, which is a specific type of purchase, a client is more of a ‘formal’ kind of a customer. For example, if a person wants to buy clothes, then they are the customer of the store, not the client. Yet, you are an accountant and prepare the company’s financial statement, which is your client.
The client’s sales cycle tends to be quite long; thus, the client relationship is vital.
The Definition of Customer
A customer is an individual or an organization that purchases goods or services from a shop, store, or business rather than an individual or professionals. Customers are involved in casual purchases; in other words, they buy goods regularly.
In contrast to the client, the sales cycle is typically short, as the customer may not develop brand loyalty. Likewise, when running the business, the executives do not rely on only one or two customers; instead, they prioritize other aspects.
Examples of a customer are a person going to the store or eats in a restaurant.
4 Key Differences Between Client and Customer
Longevity
Let’s take two cases for illustration. A six - month project is the partnership’s term of a graphic designer with a client. For two decades, a stockbroker may manage a portfolio of one client. Furthermore, the customer who visits a clothing shop every year may never become a “client.” Nevertheless, the relationship with that customer will possibly outlast that of the designer and the stockbroker together.
Therefore, in companies with lifetime customers, longevity becomes meaningless; in other words, it may not be a significant differentiator of the differences between the customer and the client.
Industry
Previously, various words have been used by some companies, and these influenced its use. The word customer has traditionally been used by retail stores, whose consumers typically only directly contact the store and its employees when looking for something different.
Other industries generally view their consumers as clients. The following are several industries that have used the term client: advertising, real estate, business consulting, legal services, financial planning.
Relationship Depth
It is all about the involvement level and time you have with a customer.
The customer is involved in the consumption of goods and services, so the relationship is not quite deep. Meanwhile, the client is involved in a “professional service provider.” They generally hire someone for their expertise; hence, the relationship is much deeper and the level of involvement is higher.
The relationship depth may be the most common differentiator of defining a customer vs. a client. However, the gap is narrowed down because of technology, affordable CRM systems, and customer experience design leading to more businesses customizing interactions and strengthening relationships with their customers.
Agreement
Another aspect when it comes to client vs customer is an agreement.
There is no formal agreement between a customer and the seller because of an only one-time purchase. In contrast, the client engages in a long-term relationship with an agency or a firm, and two parties should have a formal agreement that covers quota, deadlines, responsibilities, expected results, projected results, etc.
How to Know If You Have Clients or Customers
Client-based agencies include a law firm, design studio, accounting firm, insurance agency, real estate agency, advertising agency, and health care provider. Their clients are only a few, but high-ticket and loyal.
Customer-based companies include banks, restaurants, retail stores, supermarkets, SaaS products, service stations, and amusement parks. The customers that make one-time purchases are plural.
Even though the sales cycle of this single trade is much shorter than client-based companies, reoccurring purchases are required to work things out. The volume matters in this case.
Should You Treat Customer and Client The Same?
Of course, the answer is No. Let’s figure out the following aspects:
Firstly, the client purchases the services and advice from an expert or an entity; on the other hand, the customer buys products from a shop, store, and organization.
Besides, the relationship with the seller is long-lasting for the client and short-run for the customer.
The client has a legal agreement with the seller to obtain mutually consented objectives; meanwhile, the customer does not have to do that during the purchase.
Also, when working with the client, offering decent and authentic advice is of utmost importance. On the other hand, you can sometimes exaggerate the product’s usefulness to tempt a customer to make a purchase.
A client receives more attention than a customer due to the longevity of their relation.
Another aspect is that the services provided to customers are profit-centric whereas the services and advice to a client are geared towards people.
Furthermore, keep in mind that the customer has the right to products or services like feedback forms and recommendations while the client does not.
Conclusion
To sum up, the major difference between customer and client is about selling and serving. However, both are very vital to any business both in the short run and long run. The companies should tailor their products to meet the customer’s demands and provide services based on the requirements of the client so that they can satisfy their customers and clients.
If you have any questions, do not hesitate to leave a comment in the box below. We are glad to help you out. If you find this post useful, you can share this with your friends.
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