Client v’s Customer: What’s the Difference, and Why do we Need to Treat Them Differently?
At Xenos Business Excellence, we are the UK-licenced provider of Tenacity® : an internationally-proven method for helping B2B service providers to maximize client retention. So what is a “client”, as opposed to a “customer”?
Many people think a “client” and a “customer” are the same thing. In reality, there are differences between a client and a customer. Indeed, understanding that difference can be crucial and decisive, depending what business you’re in.
But when it comes to these two words, there’s a reason for pausing on them and being particularly thoughtful about what we choose.
Client vs. customer differences
According to the Oxford dictionary, a customer is “a person or an organization that buys goods or services from a shop or business,” and a client is “a person who uses the services or advice of a professional person or organization.” So you could say: customers buy products, and clients buy advice and solutions. In the end, what people are buying is less important.
Because both clients and customers buy something from an organization, the two terms are often used interchangeably .But for us at Tenacity®, that’s where the similarity ends.
We think about it like this: customers are mainly taking part in a one-time transaction to satisfy a short-term or singular need, while clients are taking part in a business relationship over time that satisfies a series of needs.
Why the client and customer difference is important
When an organization has a relationship with a client vs. a customer, the entire strategy around service, support, and the overall client experience changes. Instead of relying on a frontline customer service team that churns through phone calls, emails, and chat sessions, the organization focuses on building and nurturing a connection with each client by elevating the level of access and personalization it provides.
This is not to say customer service teams — in the way we described them above — aren’t necessary or don’t provide value, because they certainly do. We just mean that once your business turns to thinking about its customers as clients, there’s much more that needs to go into the concept of “client service” than what would otherwise be offered.
Ultimately what we’re talking about is taking an interest in your clients’ success and doing everything you can to ensure it.
The role of client success
Client success is not just about support, or the immediate steps or actions needed to solve a problem or fulfil a request. It’s about developing a partnership, cultivating empathy, and optimising clients' overall experience with the organisation. Client success comes from listening to and interacting with clients in authentic, productive ways, as well as seeking answers to questions like:
Is the client optimising our service to obtain maximum value ?
Is there expert knowledge or advice to give the client that would add to the perceived value of our ongoing offer?
What are the client’s long-term goals and what part can our service play in helping them to achieve them?
Are there issues the client has, that are not necessarily within the scope of our agreement which we could help them solve.
Client success, in many ways, is also reciprocal.
Whereas a customer can walk away if all they needed was an immediate answer to an urgent issue, maybe dropping the service after one the initial term, a client sticks around — often for years. Clients are interested in the full breadth and depth of your service offering. They willingly give feedback that can be used to improve the service you offer, not just to them but to all your clients.
Together, an organization and its clients go forward, each impacted by and invested in each other’s outcomes, and that is what Tenacity® strives to achieve with you.
