expand: date=October 2008

A customer is someone who makes use of the paid products of an individual or organization. This is typically through purchasing or renting goods or services.

The word historically derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future. The shopkeeper remembered the sizes and preferences of his or her customers, for example. The word did not refer to those who purchased things at a fair or bazaar, or from a street vendor.

Types of Customers

Customers can be classified into two main groups: internal and external. Internal customers work for an organization, possibly in another department or another branch. External customers are essentially the general public.

Internal Customers

• People working in different departments of the vendor's organization
• People working in different branches of the vendor's organization

External Customers

• Individuals
• Businesses or businesspeople, including suppliers, bankers and competitors.
• NGOs, Government Bodies, Voluntary Organizations.

Needs and Expectations

Customer needs may be defined as the facilities or services a customer requires to achieve specific goals or objectives. Needs are generally non-negotiable, but may be optional or of varying importance to the customer. In any transaction, customers seek value-for-money, and will often consider a range of vendors' offers before settling on a purchase.

Customer expectations are based on perceived values of facilities or services as applied to specific needs. Expectations are influenced by cultural values, advertising, marketing, and other communications, both with the supplier and with other sources. Expectations are negotiable and modifiable.

Both customer needs and expectations may be determined through interviews, surveys, conversations or other methods of collecting information. Customers at times do not have a clear understanding of their needs. Assisting in determining needs is a valuable service to the customer. In the process, expectations may be set or adjusted to correspond to known product capabilities or service levels.