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What Is an Internal Customer & a External Customer?

A Definition and Case Study

❶Again in previous lessons we looked at internal functions and how marketing can be used internally for the flow of internal services and communication. This is in practice by many of the companies so that their employee gets train and may deal with External customer effectively.

What Are Some Examples of Internal and External Customers?

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Sometimes you are the customer and sometimes you are the service provider. There are of course many other internal parts of the business. External customers are more likely to be customers, users, and stakeholders. Customers are those that exchange money for goods and services and consumers are those that actually use the product and as we said they may or may not be the same person. So a user is the same as a consumer. According to Blythe , stakeholders are people who are impacted by corporate activities.

An obvious stakeholder might be a shareholder since they have voting rights at annual general meetings. A less obvious stakeholder would be the person that owns the land next to your factory, or the family that is supported by the father that works in your warehouse. A connected stakeholder is one with the direct association with your business, and this would be a supplier or a shareholder. Obviously other stakeholders would not have the same strength of connection, for example in the case of the local community.

We going to look at Starbucks coffee as an example of a company that has both internal and external customers, and we should be able to apply some of the terminology that we introduced above. The internal customers will be the people that work within the business of Starbucks.

The internal customers will be everyone from the Board of Directors of the company, to the supervisors and team members that serve coffee at the customer interface. So information and communication will flow from the board of directors to the people on the ground, and data and feedback from customers can flow from the people in the coffee shops back to the internal customers in the marketing department.

They can affect a business by dissuading others from purchasing its product or service. It is important for companies to build a good relationship with external customers. By providing the best solutions, training employees and maintaining a high level of service, businesses can gain the trust and loyalty of customers. What Is an External Customer? Full Answer The ultimate goal of a company is to provide what customers want and need and to make sure that they are happy with their purchase.

Learn more about Customer Service. Why Is the Customer Always Right? The phrase "the customer is always right" originated in with customer service pioneer Harry Gordon Selfridge, who believed that excellent customer ser You May Also Like Q: What Is a Merchandise Associate?

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External customers buy your products and services. External customers do business with your company as employees, and their needs matter as well.

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Quick Answer. An external customer is a customer who purchases a company’s products or services but is not an employee or part of the organization. For example, a person who goes to a retail store and buys merchandise is an external customer.

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External and internal forces create conflict for employees within the workplace. With a struggling economy and ever increasing prices for gas, food, utilities, and other commodities, these external stresses place conflict on employees' home lives. This lesson will consider the internal and external customer, how marketing is used to build and nurture customer relationships, and will begin to build your knowledge on the customer loyalty.

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An internal customer can be a co-worker, another department, or a distributor who depends upon us to provide products or services which in turn are utilized to create a deliverable for the external customer. External Customers are those individuals who do not belong to company / organization in any aspect or may be the end user of the product. Basically the target area of any organization or the company is the External customer. He is not associated with the company. He does not .