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An internal customer is an employee who purchases products from their employer, either as part of the production chain or at a discount. It is important for businesses to include internal customer support in their overall customer strategy to increase productivity and motivation.
An internal customer is a customer who purchases products manufactured by the employer. The term can be applied in a variety of situations, including business structures where one department actually purchases products from another as part of the production chain. Other times, an internal customer is simply an employee who has purchased a finished good or service directly from the employer, sometimes at a discount from the price that is charged to other types of consumers.
The concept of an internal customer is slightly different from that of an external customer. External customers are buyers who are not part of the business organization. For example, if Company ABC chooses to purchase widgets from Company XYZ and the two companies are not subsidiaries of a larger trading operation, the purchase is said to be external. If ABC and XYZ were actually owned by the JKL company and operated as subsidiaries of that parent organization, then the purchase would be considered internal.
Many different types of businesses enjoy a volume flow of business from internal customers. Retail organizations often offer employees the opportunity to purchase goods at a discount, a move that prompts such employees to meet their needs by shopping with the employer rather than buying from a competitor. Similarly, agents and administrative staff working with insurance agencies may choose to take out policies with their employer rather than with other agencies. Even people who work with communications companies may be offered services such as DSL or audio conferencing services at a discount not easily available through other providers.
One of the challenges for any business is finding ways to include internal customer support in the overall customer strategy. Since the focus of many customer service and support operations is directed outward, the needs and concerns of a customer who are part of the organization can be overlooked. This can be counterproductive on multiple levels, sometimes to the point of losing business and having a negative effect on how the employee perceives their contribution to the company’s success. Choosing to include components that provide incentives to each internal customer as well as giving them the opportunity to receive assistance as and when needed will often not only increase the desire to buy from within, but will also have the benefit of motivating those employees to be productive in the workplace as possible.
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