External Customer

Published by MBA Skool Team, Last Updated: January 22, 2018

What is External Customer?

An external customer is what is commonly referred to as a ‘customer'. He/She 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, visitors that visit the attractions, the guests that stay in hotels, the diners that eat in restaurants are external customers. External customers are often contrasted with internal customers who are customers of the company and are also a part of the organization like the employees of the company.


External customers are essential to any business as they provide a revenue stream, make repeat purchases and refer your products to other people. Or alternately, they may also dissuade others from becoming customers of the company.


Internal customers also play an important role in the success of a business. For example. if a salesperson does not work well with customer service representative, it may result in a poor level of service.


An Example

Consider the case of Starbucks Coffee. It has both internal and external customers.The internal customers will be the people that work within the business of Starbucks like the Board of Directors of the company, the supervisors and team members that serve coffee


External customers will be the everyday public that come in and buy coffee.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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