Difference Between Client and Customer from a Business Perspective

The primary difference between client and customer lies in the scope of the relationship each builds or wants with a business. The contrast is seen more in their characteristics and transactional nature.

Client vs Customer: Key Comparisons

Here are some of the essential bites on the difference between customer and client. Have a look at this table before we explain them more. 

Aspect	Customer	Client
Nature of Relationship	Transactional; short-term interactions	Ongoing; long-term partnerships
Purchase Type	Buys products or services	Seeks professional advice or solutions
Engagement Length	One-time or occasional	Extended, often contractual arrangements
Needs Fulfillment	Immediate satisfaction of wants or needs	Tailored solutions addressing specific needs
Focus on Value	Immediate value from products/services	Long-term value, improved operations, growth strategies
Type of Business	Retail, consumer goods industries	Professional services (law, consulting)

Who is a Customer?

A customer buys a product or service from a business to satisfy an immediate need or want. The customer can purchase one time or infrequently from a business. That, again, depends on whether the products or services are relevant to their transitory needs. 

Who is a Client?

A client seeks professional advice, services, or support for building a new product from a business in the form of a partnership over a longer period. The client and business sort out an agreement and work together, which may take weeks to years. Their need is not necessarily immediate. The business provides fully customised products or services for them, unlike the customer.

Example of Difference Between Client and Customer: Explanation 

You have a retail store. A customer comes to you to buy a dress. They may or may not shop from you later. Just because your store has the dress, the customer is satisfied with their immediate need. 

The customer is not a client because the relationship between the customer and your store is transactional. The customer is simply looking to purchase a product from you. The main focus is on the immediate value they receive from the dress, such as its price, quality, and convenience. 

But, suppose you want to take the retail store online. You will hire an agency that builds your website and manages your digital presence through marketing, graphic design, and such. Here, you are the client of the agency. You are buying the services they provide over an agreement. They rely on the feedback on the solutions you may have. This professional relationship is based on an agreement and a strategy that goes beyond a simple transaction.  

How Different Industries Refer to Client versus Customer 

In some industries, there is a clear difference between the two terms. 

For example, the term "client" is more commonly used in professional services industries, such as law, accounting, and consulting. The term "customer" is more commonly used in retail and consumer goods industries.

There are good reasons for looking at them separately. 

The term "client" is more commonly used in professional services industries because it conveys a sense of professionalism and expertise. In these industries, businesses typically provide high-value services that require high skill and knowledge. It suggests that the business is providing these services to another professional seeking their expertise and advice.

In contrast, the term "customer" is more commonly used in retail and consumer goods industries because it suggests a more transactional relationship. In these industries, businesses typically sell products that are intended for the general public. It suggests that the business is simply providing a product to someone who needs it. 

Isn’t a Client also a Customer? 

If you are familiar with B2B marketing terminology, the customer or buyer is referred to as a client. Some B2B marketing professionals, including Jeff Neal from Capital Coating, prefer calling their buyers to be clients. They consider the client is not just buying a ‘commodity’ like a customer but demands a ‘custom-fit solution’. These solutions are a ‘group effort’ of the company derived from feedback.

Types of Transactions: Customer vs Client

You can find out how the transactional nature varies between a customer and client. 

How a Customer Transacts with a Business

Customer transactions are typically one-time or sporadic interactions between a customer and a business. These transactions are typically characterized by the following:

• Standardised products or services: Customers everywhere typically purchase standardised products or services that are readily available and do not require a high level of personalisation or customisation.
• Immediate value: They are primarily concerned with the immediate value they receive from a product or service, such as its price, quality, and convenience.
• Transactional relationship: The relationship between a customer and a business is typically transactional, meaning that the customer is simply looking to purchase a product or service and does not expect ongoing support or advice.

How a Client Transacts with a Business

Client transactions are typically ongoing relationships between a client and a business. These transactions are typically characterized by the following:

• Customised products or services: Businesses provide customised products or services that are tailored to the clients’ specific needs and challenges.
• Long-term value: Clients are concerned with the long-term value they receive from a business, such as improved business operations, solved legal or financial issues, or developed growth strategies.
• Strategic partnership: The relationship between a client and a business is typically strategic, meaning that the client is looking for a partner who can help them achieve their long-term goals.

How Businesses Leverage the Characteristics of a Customer vs. Client

Here is how you can know the difference in characteristics from a business or marketing perspective. 

Customer Characteristics that Businesses Focus On

Customers are the lifeblood of any business, and understanding their inherent characteristics is essential for developing effective marketing, sales, and customer service strategies.

• Needs and wants: They have a variety of needs and wants they seek to fulfil through their purchases. These needs can be functional, such as the need for a reliable mode of transportation, or they can be emotional, such as the desire to feel stylish or confident.
• Decision-making process: Customers go through a decision-making process or typically called BOFU (bottom-of-the-funnel) when making a purchase. This process typically involves identifying the problem or need they are trying to solve, researching different options, evaluating them, and making a final decision.

• Purchasing behaviour: Their purchasing behaviour is influenced by a variety of factors, including their needs and wants, their budget, their perceptions of the product or service, and their past experiences with the company.

• Loyalty: Customers' loyalty to a company is influenced by the quality of the products or services they receive, the customer service they experience, and the overall value they perceive from the company.

In addition to these general characteristics, customers can also be categorised by their demographics, psychographics, and behavioral patterns.

• Demographics: Demographic factors such as age, gender, income level, and education level can influence customers' needs, wants, and purchasing behaviour.
• Psychographics: Psychographic factors such as personality traits, values, and lifestyle can influence customers' decision-making process and their perceptions of a product or service.
• Behavioural patterns: Behavioural patterns such as past purchase history, frequency of purchase, and sensitivity to price can help businesses identify and target specific customer segments.

Client’s Characteristics that Businesses Focus On

They seek professional expertise, advice, and solutions tailored to their specific needs and challenges. Clients value long-term relationships and are willing to invest more time and effort in working with a business to achieve their desired goals. The main characteristics are explored below. 

• Needs and challenges: They have complex and specific needs and challenges that they seek to address through their relationship with a company. These needs may involve improving their business operations, solving legal or financial issues, or developing new strategies for growth.
• Expectations: Clients have high expectations for the quality of service and expertise they receive from their providers. They expect their providers to have a deep understanding of their business and industry, and they expect them to be able to deliver solutions that are tailored to their unique needs.
• Willingness to invest: They invest time, money, and effort into their relationships with providers. They understand that achieving their goals may require a significant investment, and they are committed to working collaboratively with their providers to achieve success.
• Long-term perspective: They usually take a long-term perspective on their relationships with providers. They are not interested in quick fixes or short-term solutions. They are looking for partners who can help them achieve their long-term strategic goals.

In addition to these general characteristics, clients can also be categorised by their industry, size, and level of complexity.

• Industry: The needs and expectations may vary depending on their industry. For example, a law firm's clients may have different needs and expectations than a software development company's clients.
• Size: A large enterprise client may have more complex needs and expectations than a small business client.
• Complexity: A client with a highly complex challenge may require more specialised expertise and resources than a less complex one.