Customers vs consumers: Key differences between the two groups

What is the difference between a customer vs consumer?

A customer is the person who buys a product or service, while a consumer is the person who actually uses it.

• A customer pays for the goods. The consumer may or may not be the same person.
• Customers can buy to resell. Consumers only buy to use.
• Each group needs its own marketing plan.

Most companies work hard to attract more customers to their brand. A large customer base brings in more profit. As a result, the business can keep running and grow over time.

Sometimes a customer is also the consumer. This happens when the buyer uses the product or service for their own benefit.

However, there are a few key differences between them. Because of this, each group needs a different business and marketing approach.

Types of customers

A good marketer always works to draw customers to their goods and earn loyalty. Without clients to serve, there is no point in running the business. For a deeper view, it helps to study customer analysis before you build any plan.

Customers usually fall into two groups.

Resell/trade customers

Resell or trade customers are people who buy a product to sell it to others. They do not use the product themselves. Instead, they act as a link between the maker and the end user.

The main examples of resell customers are wholesalers and distributors.

Final customers

Final customers are different from resellers. They buy a product for their own use, needs, and wants.

A final customer does not buy for profit. Instead, they buy to use the product or to give it as a gift.

Who is a consumer?

A consumer is the person who uses a company’s products and services. They are known as the end user of any goods in the market.

A customer may not use what they paid for. A consumer, however, uses the goods for their own needs.

Consumers are useful to a business because they can judge and analyze the quality of a product. In addition, the consumer mindset shows what is in demand right now.

Types of consumers

Makers need to spot the different types of consumers. This helps them offer products that match each taste. It also links closely to smart customer segmentation.

The following are the main types of consumers.

Extrovert

These consumers prefer unique or branded items. Once they trust a brand, they tend to stay loyal to it.

In addition, extrovert consumers can become brand advocates. They will recommend a product if they think it is high quality.

Inferior goods

Inferior-good consumers are people with low incomes. Because they have less money, they buy only what they need for daily life.

Commercial

Commercial consumers can also be called bulk consumers. They often order goods in large numbers, whether they need them right away or not.

Usually, a commercial consumer links special needs, such as emergencies, with their buying choices.

Discrete

As the name suggests, this consumer often chooses a discrete way to buy. For example, they may pay a large amount for specific needs, such as clothes, cosmetics, jewelry, or electronics.

They also tend to avoid cutting costs on goods they see as essential.

Customers vs. Consumers: Differences

Learning the customer vs consumer difference makes both groups easier to tell apart. So here are the key points that set them apart.

The terms customer and consumer are often used to mean the same thing. However, a marketer sees a clear difference between them.

Every person is either a consumer or a customer. Sometimes they are both at once. Still, these words carry different meanings.

So when do we use each word? The points below will help you make the distinction. Mapping the full customer journey also makes the split clearer.

Who is a customer?

A customer is a person who buys a product or service from a business. They can also be called a client or a buyer.

A good example is someone who pays for an item in a shop. As long as money changes hands, the person counts as a customer.

• Definition: The customer buys the goods, while the consumer is the end user.
• Resale: Consumers cannot resell the products, but customers can resell the goods after they buy.
• Payment: A customer must buy a product or service to be called one. Meanwhile, a consumer does not need to buy at all.
• Motive: Customers buy for resale or for use. Consumers only have use in mind when they look for products.

Customers vs. Consumers: Are both groups important?

Both the customer and the consumer matter in the idea of consumerism. If either group is missing, the economic chain can break. As a result, this may cause problems that hurt the wider economy.

Demand is the main root of any product or service. Most makers launch new goods based on what consumers and customers want.

The two groups have different needs. Because of this, companies keep launching new products and strengthen many industries. They may not be the same person, but both deserve your marketing effort. Strong customer satisfaction keeps both groups coming back.

Frequently asked questions about customer vs consumer

Is a customer always a consumer?

No. A customer buys the product, but they may not use it. For example, a parent who buys a toy is the customer, while the child is the consumer.

Can a consumer also be a customer?

Yes. When you buy a snack and eat it yourself, you are both. So the same person can hold both roles at once.

Why does the customer vs consumer difference matter in marketing?

Each group makes choices for different reasons. As a result, you need separate messages for the buyer and the end user.

Who should a brand focus on first?

It depends on your product. Still, most brands need to keep both the customer and the consumer happy to grow.

Key takeaways

• A customer buys the goods. A consumer uses them.
• The same person can be both, but the roles are still different.
• Customers can resell products, while consumers only use them.
• Each group needs its own marketing plan.
• Brands grow when they serve both the buyer and the end user.