There are many differences between a client and a customer. But before jumping to the main heading first we should understand the meaning of client and customer briefly.
Difference between client and customer
- Client: A company or a person can be called a client as they receive professional services in exchange for money.
- Customer: A customer is someone who consumes the services as well as goods buying it from the shops.
Moving further we would find some differences between client and customer with the help of the following table:
| Differences | Client | Customer | |
| a) Meaning | A company or a person is known as a client as they receive professional services in respect of payment. | Whereas someone who buys goods and services from a shop to consume is called a customer. | |
| b) Goods | A client only receives services. They do not receive goods. | The customer receives goods as well as services. | |
| c) Place | The client do not need to go to shops to buy these services. Those services providers may be a company any individual or organizations like law offices, graphic firms, talent agencies, etc. | They are those who need to buy these goods and services from a shop, whether it may be a retail store, restaurants, supermarkets, wholesalers, or e-commerce websites like Amazon, Myntra or Flipkart, etc. | |
| d) Need a knowledge | They need to know about the experience, knowledge, and professional certificate (if required) of such service provider related to the respective work. | A client does not need any professional certificate and experience, they only need to know about such goods or services they are willing to buy. | |
| e) End-user | A client is an end-user of such services received. E.g.; a client uses these services to develop goods or services. | Whereas a customer may or may not be the end-user of such goods or services. E.g.: a customer may use these products or may gift them to someone. | |
| f) Expenses | Client needs to expense more to advertise their products. | A customer does not need to expense for advertisement. They only purchase goods from clients to use. | |
| g) Roles | They play a role of a client as well as a customer. As a customer, they buy those services developed by those professionals and as a client, they hire those professionals for developing these products. | Whereas a customer does not have any double-sided role. They only buy products or services to consume. | |
| h) Responsibilities | A client has many responsibilities like to advertisement, sales & distribution, warehouse maintenance, etc. | A customer does not have these types of responsibilities like a client. | |
| i) Relationship | There is a fiduciary relationship between a client and a company. A strong relationship where a business has to build a long-lasting relationship with their client to make them to come back. | A customer is only involved in the transactions with the company. It is probably a one-time purchase. Therefore a business can not build a long-term long-lasting relationship with the customers. j) Price Clients pay for the services that are required by their business.In SaaS, they can pay “per use” basis for looking to reduce their cost for the business. | On the other hand, some customers want to buy white goods, goods that match their tastes and preferences. They are not price sensitive. |
| k) Loyalty | Clients are loyal towards business. They have long-term relations with the organization or company. | Customers are not much loyal to the same brand or business or organizations because of the competitive market they shift towards another brand. | |
| l) Examples | Attorneys and Accountants have their clients, not customers. | Banking and restaurant have their customers, not clients. |
These are some questions that can be raised in your mind related to the above topic:
- What is the difference between client and customer in Banking?
Ans: In the banking sector banks are clients because they use professional services like accountants, Advocates, etc whereas account holders are the customers of that bank as they are getting banking services.
- What is the difference between client and customer in Real estate?
Ans: In Real estate, it depends on the type of brokerage agreement. If a person enters into a representation agreement then this will be called a client, But if a person enters into a customer service agreement then that person shall be called a customer.
- What is the difference between client and customer in Software as a Service (SaaS)?
Ans: Anyone who pays money to buys a subscription for your product is a customer, who will stay for a short term with a business. But a client is a loyal customer for your business who will stay with you for a longer period.
- What is a client in Business?
Ans: In the context of Business clients are the recipient of professional advice, or services and pay for that. It may be a company, organization, or a firm establishing long- term relationship with the business.
