Client Vs Customer: What Are the Differences?
Some people might think the difference between client vs customer is an argument of semantics, this difference will actually help you make strategic decisions about customer service.
A customer is someone who buys something, especially from a shop. Also known as a customer, a client is a person or business that hires a professional to perform a service for them in exchange for payment.
In this post, let’s review the difference between client and customer and why it matters.
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What is a Client?
A client is a more loyal customer. A client will continue to work with you and your product, as opposed to a customer who essentially made one purchase from you and never again. A client is a customer with whom you build a relationship.
This is not to say that users don’t feel a connection to a SaaS product or business. But the relationship will inevitably end quickly, if at all.
Contrarily, a customer will make a long-term investment in your product. To gain value over the long run, they want to establish a personal and lasting connection with your brand and business. Customers may only stick around for a month, but clients frequently stay with you for years.
Furthermore, a client is someone who does not focus on the immediate exchange of money for services. They are more concerned with the big picture and how your product can assist them in achieving success now and in the near future.
The relationship feels more like a partnership when money is put aside, which can boost customer satisfaction and loyalty for both the client and your company.
Characteristics of Clients
Here are some characteristics of clients.
Their Expectations Are Realistic
Since most clients are responsible individuals who have done their research prior to meeting you, they are known to have realistic expectations of your work potential. This is a crucial factor that makes working with them incredibly simple.
It will be so much easier to work for these profiles once you and your client are on the same page about the necessary details, such as the budget and end goal of the whole project.
They Highly Trust Your Expertise
A good client takes the initiative to advance the project and doesn’t hold back when communicating their needs, desires, and ideas in a way that is helpful and clear.
This attitude of theirs enables you to meet deadlines and produce a successful outcome that they will adore. They like to get involved, but they still leave you in charge to see how you handle things. Be careful right there.
They Are Open to Advise
You won’t need to go against the grain and defend each and every choice you make when your clients respect and trust you for your knowledge.
Even though your client may come to you with a preconceived notion of what they want, working with them will be much simpler if they can accept your advice.
What is a Customer?
The first thing you need to realize is that anyone who subscribes to your product as part of a SaaS business is a customer. This applies to every tier you provide, including Enterprise tiers.
A customer will choose the kind of service they want to pay for right away. They seek an immediate return on their investment. Though not all SaaS customers are clients, all SaaS clients are customers.
Customers spend money on precisely the SaaS product they require in order to use it right away and benefit from it. After a trial period or perhaps a billing cycle or two, they might find what they were looking for and depart.
Sometimes, customers’ needs were short-lived so they will no longer find using your product advantageous.
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Characteristics of Customers
They Might Come and Go Pretty Quickly
Customers spend money on the exact SaaS product they require in order to immediately benefit from it.
This implies that after a free trial period or perhaps a few paying packs, they will likely get what they want and leave. In other words, they might have transient needs and cease to value or be interested in your product as a result.
They Are Here for Convenience
Customers typically don’t rely on the benefits that a single company, store, or organization offers; instead, they are very likely to shop anywhere that is more convenient and offers a better deal.
This makes it slightly harder for you to achieve customer satisfaction since their needs and wants may vary wildly.
They Are Very Straightforward With What They Want from You
Businesses that provide a single service and provide physical goods or products instead of ongoing services are typically the ones that have customers.
For instance, food chains have customers. Since people do not have a long-term client relationship with these stores, they are very likely to choose a different store that is closer to their home or has lower prices.
It’s because these people select the goods or services they need and pay right away. Yes, they might return to the same store later, but trust me when I say it’s always for an immediate exchange in exchange for their money.
Similarities: Customer Vs. Client
No matter how long they’ve known you or how committed they are to working with you, both customers and clients buy from you.
Both need and deserve your attention with any problems that come up and the best customer service you can provide. Both are important to the success of your company, but the distinctions between them might shed light on the significance of your long-term success.
Key Differences: Customer Vs Client
- A client is, in essence, anyone who requests the company’s expert assistance or services. While a customer is someone who makes a purchase from the business of goods or services.
- Relationship: When a customer completes a one-time purchase, there is no formal relationship or agreement with the seller. However, clients commit to a longer business relationship, which may or may not end after the first purchase.
- Length of Time: In general, customers don’t trust goals with longer time frames. Instead, all they aim for is one-time sales. On the contrary, companies that have clients always have to put their best foot forward and see the time frame too, or else the clients might churn.
Read More: Consumer Vs Customer
Why Client Vs. Customer is Important?
Within the SaaS industry, the client vs customer dichotomy is key to your business strategy. Since clients will pay for your product for a much longer time, these relationships will usually require more time and attention, which means more resources dedicated to customer success.
Clients will be your most loyal customers, so it makes sense that you should strive for maximum customer retention of your clients.
It is important to remember that customer retention typically costs five times less than customer acquisition, which highlights how crucial it is to give your customers highly personalized, first-rate service.
Even better, you might choose to give your customers more specialized support. This is especially true for “Enterprise,” or top-tier package subscribers.
These customers will receive more focus and dedication on their needs in addition to cloud-hosted subscription software, enabling them to succeed to the fullest extent possible.
Wrapping Up: Client Vs Customer
The client vs. customer enigma is hopefully clearing up for you now. At the end of the day, as long as you are providing software-as-a-service with a multi-tiered subscription model, you have customers.
When you have dedicated customers, who stay with you for years and likely purchase the Enterprise Level or top-tier of your offerings, your customers become clients. To ensure that you can retain your most devoted customers for as long as possible, you can now offer them their own customer success manager.