{"id":58773,"date":"2022-01-09T16:05:09","date_gmt":"2022-01-09T20:05:09","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=58773"},"modified":"2022-01-21T16:13:37","modified_gmt":"2022-01-21T20:13:37","slug":"internal-and-external-customers","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/internal-and-external-customers\/","title":{"rendered":"How to Satisfy Both Internal and External Customers"},"content":{"rendered":"\n

What’s the difference between internal and external customers? How can you figure out what each type of customer wants?<\/p>\n\n\n\n

Management experts\u00a0Ken Blanchard and Sheldon Bowles explain in their business fable Raving Fans <\/em>that, in order to satisfy both your internal and external customers, you first need to find out what they want. That’s why feedback is so important to a business.<\/p>\n\n\n\n

Here’s how to satisfy both types of customers<\/a>.<\/p>\n\n\n\n\n\n\n\n

External vs. Internal Customers<\/h2>\n\n\n\n

When the authors talk about your customers, they\u2019re not just talking about the people who buy your products or services. Even if you\u2019re a freelancer or sole owner, your business has many internal and external customers or stakeholders. <\/p>\n\n\n\n

External customers<\/strong> are the people who see your business as a provider of something they buy. They\u2019re the people that you create your products and services for and bring in revenue. <\/p>\n\n\n\n

Internal customers<\/strong> participate in your business and are invested in your success. They include your team members, departments within your business, suppliers<\/a>, and manufacturers. <\/p>\n\n\n\n

Some experts disagree with the authors\u2019 suggestion that all parties invested in the success of your business should be classified as internal stakeholders<\/a>. Here\u2019s a more typical classification of stakeholders:

Internal Stakeholders:<\/strong>
-Owners
-Employees

External Stakeholders:<\/strong>
-Customers
-Suppliers
-Investors
-Creditors
-Media
-Communities
-Trade unions
-Government agencies

Further, many experts classify each stakeholder according to how much they contribute to your business, and whether they are directly or indirectly impacted by the success of your business. These classifications are useful to know when considering who to approach for feedback. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The Fable: Ask Your External Customers What They Think of Your Service<\/h3>\n\n\n\n

In the fable, once the Area Manager defines his vision, his Fairy Godmother takes him to meet the owner of a manufacturing plant to discuss the second secret to creating \u201cRaving Fans\u201d: Discover Your Customers\u2019 Ideal Service Experience. <\/p>\n\n\n\n

The owner insists that your vision needs to include everyone involved in the creation, marketing, and distribution of the product<\/strong>, as their input impacts the service your customers receive. When the Area Manager asks him to explain how to find out what customers want<\/a>, the owner tells him to simply ask, and then to listen both to what they say and <\/strong>don\u2019t<\/em><\/strong> say<\/strong>.<\/p>\n\n\n\n

(Shortform note: Up until this point in the fable, the authors focus on business-to-consumer relationships. The manufacturing plant is the first example in the book that demonstrates the principles in a business-to-business<\/a> context. The diversity of businesses in the fable clearly illustrates how different types of businesses can benefit from the \u201cRaving Fans” principles.) <\/p>\n\n\n\n

Find Out What Your External Customers Want<\/h3>\n\n\n\n

The authors emphasize that customers will often say one thing and mean another, and they stress that you need to look beyond what they say to figure out what they want. In particular, the words \u201cfine\u201d or \u201cokay\u201d indicate that they weren\u2019t that impressed with you but don\u2019t want to make a fuss. Perhaps they believe that you don\u2019t really care about what they think. This type of bland response indicates a problem with how they\u2019ve experienced your product or service. Remember, your customers are always judging you and will certainly be aware of the problems even if they choose not to complain<\/strong>.<\/p>\n\n\n\n

(Shortform note: This type of response doesn\u2019t always indicate a problem with your service. Customers often find it difficult to articulate what they want both to themselves and to others<\/a>. For example, a customer is trying to be healthy so orders a salad, but this customer really<\/em> wants a burger. Or, a customer doesn\u2019t know what to eat and relies on the restaurant to fulfill a need that hasn\u2019t been specified. In both cases, when asked how the meal was, the bland responses could imply dissatisfaction with the meal or the service, but they could also imply that the customer doesn\u2019t know her own feelings.)<\/p>\n\n\n\n

As well as listening to what they say, you must pay the most attention to their silence. Silence from a customer often expresses dissatisfaction<\/strong>. In short, the authors stress that all feedback you receive provides insights, and all feedback you don\u2019t<\/em> receive also provides insights.<\/p>\n\n\n\n

Shortform Exclusive: Feedback Framework for External Customers<\/h4>\n\n\n\n

Blanchard and Bowles don\u2019t provide actionable steps to obtain feedback or interpret customer silence, and this frustrates some readers. The authors also don\u2019t acknowledge that consumers are picky about how they spend their time and can be reluctant to respond to feedback<\/a> requests. With these points in mind, we\u2019ve created a framework to help you plan your approach to collecting feedback.<\/p>\n\n\n\n

Aim<\/strong> to collect feedback from people who have an interest in purchasing products and services from your company\u2014people who have previously interacted with your business or plan to do so. What you want to know:<\/p>\n\n\n\n