Glossary
What Is a Customer?
A customer is any individual, business, or organization that purchases a product or service from another party. Customers are the ultimate source of revenue and the primary focus of every CRM platform.
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A customer is an individual or organization that buys goods or services from a seller in exchange for money or other value. The term is often used interchangeably with 'client,' though 'client' typically implies a longer-term, advisory relationship (e.g. clients of a law firm), while 'customer' is broader and includes one-time purchasers.
Types of Customers
B2C Customer
An individual consumer buying for personal use (e.g. someone buying a phone for themselves).
B2B Customer
A business buying for organizational use (e.g. a company purchasing CRM software for its sales team).
Internal Customer
Employees or departments within an organization who consume the output of another department.
External Customer
Anyone outside the organization who buys its products or services.
Loyal Customer
A repeat buyer with high lifetime value and strong brand affinity.
Prospect (Future Customer)
A qualified lead who has not yet purchased but is in the buying funnel.
Why customers matter to a business
Without customers, a business has no revenue. Beyond the obvious, customers provide: (1) recurring revenue when they renew or repurchase, (2) word-of-mouth marketing through referrals, (3) product feedback that drives improvement, and (4) data that informs strategic decisions. This is why every modern business invests in CRM (Customer Relationship Management) software — to organize, retain, and grow its customer base.
Customer vs Consumer vs Client
These terms are often confused: A customer is anyone who buys. A consumer is the end-user (the customer may not be the consumer — a parent buys toys, the child consumes). A client is a customer in a service-based, often ongoing, advisory relationship (lawyers, accountants, consultants have clients).