A majority of the time, the terms clients and customer are used interchangeably. However, most people are unaware of the fact that these terms are not synonyms. Additionally, it is integral to note the difference between the same and also understand why it is significant.
Generally speaking, a customer purchases either a service or a product. This service or product is usually from a business, store or shop. Clients, however, are the ones who use the professional services either from an organization or a professional person. The key difference is also the usage of the services or products.
As for customers, they buy the service or product, they make a transaction wherein there is no strong or fixed relationship with the company. Clients, on the other hand, refers to the individuals who purchase the services in order to get solutions or advice as well. Additionally, even though there is a transaction, the relationship of the client with the company is much more strong and more long-term as compared to customers.
There are numerous differences based on features, relationship with the company and more. To make things a bit clearer, customer-based services are retail stores, restaurants, parks, banks etc. Whereas, client-based services are mainly various agencies, for example, advertising, real estate, insurance etc, law firms to name a few.
Definitions
Customers are individuals who purchase goods and services from a company without establishing a long-term relationship with them. The main goal for the customers is to get the best quality of products at a good price.
Clients refer to those individuals who seek advice or other professional services from businesses or companies. They focus on building their relationship with the company based on trust. They usually seek service providers, which is more long term than the ones provided by customer-based companies.
Customer and client-based companies
There are several examples of customer-based companies, as their general focus is to sell their goods and other products to their customers. They try to do this by ensuring that the price and value of the goods are worthwhile. For example, restaurants, retail stores.
Client-based companies aim to serve the client through consultation or professional services. These services are generally legal or advisory and do not involve any goods or products most of the time. For example, marketing agencies, law firms and many more.
Relationship with the company
The relationship of the customers and clients with the company is what sets them apart. The customers make a transaction with the company in order to purchase products and services. Customers end goal is to purchase the goods they require. These purchases are also based on the value and price of the product.
The client, on the other hand, focuses on a proper strong relationship with the company before purchasing any professional services from them. The company aims at forming a long-term relationship with the clients in order to earn their trust.
Services
The company ensures good service to the customers by providing good quality products that are at affordable prices as well. The advertising of the company also focuses on the price and quality of the goods.
Client-based companies focus on convincing them to hire them to provide their clients with excellent professional service. Even while advertising, the company focuses on their reliability instead of prices and value.
Longevity and agreement
Customers are likely to make transactions and also purchase goods from a company very frequently, however, it is limited for a certain period of time. The relationship is comparatively short regardless of the number of times the transaction is made and no formal agreement is made either.
The clients, on the contrary, engage in a long term project with the company. Personal attention is required more for the clients. Client-based companies emphasise more on serving the clients, rather than providing products to them. A formal agreement with the client, with respect to deadlines, results of the projects and many more are required.
Conclusion
Both customers and clients are integral parts of the business world. Even though they may seem the same, the most striking difference between the two is in terms of serving and selling.
Some companies sell products and goods to individuals who are called customers. While other companies that provide professional services and consultancies to are called clients. As per the demands of the customers, the companies improve their products. As for client-based companies, they focus on providing them with the best professional service.
Frequently Asked Questions
- What companies or businesses are customer-based?
Businesses or companies that sell goods, or services are customer-based. Some examples of the same could be retail stores, banks, restaurants etc.
- What are the other words used in place of customers?
Customers are also called shoppers or buyers. Since their ultimate motive is to purchase a certain product and service.
- What are the services provided to clients?
The services depend on the client’s requirements. A majority of them include consultancies, professional suggestions in various fields, including law, marketing, real estate, insurance and many more.
- Are there any contracts for customers?
There is no fixed formal agreement between companies and customers. Since the purchase is limited and there is no requirement for a long term commitment either, there is no proper contract.
