Internal vs. External Customers

Difference Between Internal and External Customers

Individuals in the field of commerce are very much familiar with the terms Internal and External Customers. For those who are not into the study of the market, they simply understand that a customer is one who buys or trades goods and services for a certain amount. However, Commerce has subdivided the term “Buyer” or “Customer” into two: Internal and External.

Internal Customer

Internal customer refers to an individual, group or persons, or division/ unit in one company who purchases the product/ services o9ffered by the company they are working for. Example: A teacher has taken up a nursing course in the school where she is teaching College English. Internal Customers are connected with the company from whom they are buying the goods and services.

One of the advantages of this practice is that it develops awareness among the employees on how to deal with external customers and on how to treat these customers, thus, it improves their work performance and enhances the quality of their products.

External Customer

External customers are those who seek to purchase goods and services that are not associated or part of the company which produced the wanted goods. These are customers who do not belong to the organization customers who don’t belong to the organization. They are simply outside buyers of the goods and services offered by the company. External customers may also refer to people who purchase a certain product which are affiliated in the same industry, but again, not of the same company.