mckinsey

Customer vs. Client: Help Your Company Figure Out Which Types of Customers It Needs

Customer vs. Client: Help Your Company Figure Out Which Types of Customers It Needs

At its core, the customers vs. clients debate boils down to what kind of company management wants to build. Being a “client business” implies providing a higher level of service and custom work than being a “customer business” does. That makes the economics of the businesses obviously different, but the decision also has major implications for the skill sets the business must recruit, the margins it can expect, and the partnerships it may need in order to succeed. It’s hard to find a meaningful aspect of the business that isn’t impacted by this decision.