Last Updated on November 25, 2022
“Customer” and “client” are often used interchangeably. If you use the two words interchangeably, you’re not alone. In fact, the difference between “client” and “customer” has confused many in the business world. However, there is a distinct difference between a customer and a client.
After reading this article, you may be tempted to change your business strategy to account for these differences, but I guarantee you’ll at least learn a lot about the definitions and what they mean. Explore the difference between a customer and a customer and why it matters, but first, define them separately.
Who is a customer?
A customer is a person or business that purchases something from a store, store, or organization. This definition of the term customer allows us to understand that customer is a word commonly used to refer to regular purchases. This makes sense because the word itself is derived from the Latin “custom,” which in its simplest form means “practice.”
Therefore, we understand that a potential customer is a regular buyer or has a habit of buying.
However, if you have a SaaS business, the word “customer” in this case will refer to anyone who buys a subscription to your product. You see, what makes a customer a client at this point is that they choose the specific type of service they want to pay for right away. And in return, they demand an immediate exchange of value for the price they paid. So this shows us that all SaaS customers are customers, but not all SaaS customers are customers.
CUSTOMERS HAVE DISTINCT CHARACTERISTICS, HERE ARE SOME OF THEM;
- They could come and go pretty fast.
The customer pays for the exact SaaS product she needs for immediate value. This means they are more likely to get what they crave and go for a free trial period or perhaps a paid package. In other words, their needs may be short-lived. Therefore, I will no longer find value in your product or show any further interest in it.
- Customers are here for convenience.
Customers generally do not rely on the benefits offered by a single company, store, or organization. They are most likely to shop for more convenience and better prices. This makes customer satisfaction a little more difficult to achieve as their needs and desires can be very different.
- They are very candid about what they want from you.
Typically, this type of business has customers who offer one-off services and are more likely to offer physical goods or products than other services. For example, a grocery chain has customers. Because people don’t have long-term customer relationships with these stores, they are more likely to choose new stores that are closer to where they live or offer lower prices. Choose the right service or product and pay immediately. Of course, you may return to the same store later, but trust me, they always want an immediate exchange of their money.
Who Is a Client?
Clients are essentially people who use the services of a company or organization.
What is your first impression here?
I mean, the client is closer to the standard version of the customer. a version of “prayers answered”
That’s because clients are deeply involved in certain types of purchases and services.
What exactly does that mean? This means that clients are not only customers but also more loyal customers. They are the clients with whom you develop a professional relationship. Clients will maintain this ongoing relationship with you and your service for as long as possible.
CHARACTERISTICS THAT CLIENTS POSSESS
- Their expectations are realistic.
Most clients are known to have realistic expectations about your job potential. This is a key factor that makes working with them so much easier, as it’s a responsible profile that they’ve done their homework for before meeting you. These profiles make working with them a lot easier when you and your client are on the same page for the necessary details such as budgets and end goals for the entire project.
- They trust your expertise very much.
Honest clients will actively pursue their projects and will not hesitate to communicate their requirements, wishes, and ideas in a clear and constructive manner. This attitude of theirs allows you to meet deadlines and achieve effective results that they completely love. You are responsible for watching. Be careful there.
- They are on hand to offer advice.
When customers trust you and respect your expertise, you don’t have to go against the grain and justify every little decision you make.
Your clients may know what they want when they first approach you, but working with them will be a lot easier if you can take their advice.
Customer vs. Client: A Key Difference
Bottom line, the easiest way to see and understand the key difference between customer and client is: Most of the time, a customer makes a single transaction, but the client places great trust in your ongoing and personal services. So as a business owner, you have two options. Either you provide products to meet customer needs or you provide continuous service according to client’s requirements.
Now, it’s true that both of these identities make occasional purchases, no matter how long their relationship with you lasts. And both of these customer relationships require the same personal attention and high-quality client service, but small differences can help you achieve long-term success. Primarily in the SaaS industry, customer-client litigation is key to advancing your business strategy.
How?
Well, the answer is quite simple.
Since clients will be willing to pay for your product for much longer. Your relationship with them will often require resources dedicated to customer success.
These clients will be your most loyal ones, so of course, you will try to retain as many as possible. It’s just normal—and necessary. It has been claimed that the cost of customer retention is five times lower than customer acquisition, emphasizing the importance of quality service and highly personalized support for your customers.
At some point, you might even consider offering more personalized support to your customers. Especially, those who sign up for “Enterprise” or “Top” plans.
These clients will receive the care, dedication, support, and outstanding service your company needs, which is all they need to achieve the greatest possible success and business goals.
Now, I’ll also talk about these differences under three headings, just to make sure you fully understand.
Clients care about price and value
Clients are known to pay for a one-time purchase and are generally not identified as end users or consumers. For example, a potential customer might purchase a gift from a department store for his child’s birthday. making him the customer and his child the consumer. This is why, in most cases, advertising aimed at attracting customers’ attention is often focused on price and value. When advertising is aimed at consumers, it usually pays attention to the quality and effectiveness of the individual. Client-focused businesses require people to shop online, eat in, or shop in their stores.
Clients care about experience and reliability
On the other hand, to attract new clients, you need to focus on your company’s reputation. You also need to have experience solving similar problems as potential clients. Think of it this way: a supermarket can advertise low prices, and how many years they have been in business and confidently achieve positive results. Now that makes sense, doesn’t it?
So, as a client-focused company, you need to present yourself as an organization that wants to convince potential customers to work with them. And, therefore, refer others to them.
How to Convert Prospects Into Long-Term Customers or Clients
There are ways to build closer, longer-lasting, and more personal relationships with your customers, effectively turning them into loyal clients.
Take Starbucks or Nordstrom as examples. They have been successful in building customer loyalty with the help of innovative rewards programs, that are gradually becoming more personalized to each customer through smartphone technology. With direct customer contact and constant feedback, you can provide personalized services, recommendations, and special offers on products tailored to each customer’s needs. This leads to the first blossoming of a lasting relationship with each client; try it and see for yourself.
Conclusion
All businesses have customers, but not all businesses have clients. By definition, clients will receive more personalized attention and have better employee access by having a dedicated customer success manager or case manager.
It’s important to keep these differences in mind when developing your customer service strategy. If you have customers, you will support them. However, if you have clients, you will deliver a specific CSM to help your most important customers achieve greater success. In many cases, you can provide both customer service and clientele support.
Before you go…
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