Lesson 1 - What Is A Customer

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Lesson 1: What is a Customer?

Specific Objectives:
At the end of the lesson, you will be able to:

a. Define what a customer is:


b. Identify the different types of customers; and
c. Evaluate how a customer impacts a hospitality enterprise.

Hunting for Information:

THE CUSTOMER

https://www.customerservicemanager.com/how-do-you-define-a-customer/

So what is the definition of a customer?


A customer can be seen as:
 A person on the receiving end of what the business offers
 Someone who is willing to pay a fair price for a quality product and wants to be neither over-
charged nor under-served
 The reason the company is in business
 Someone who has certain needs and wants them filled and who, if we cannot fill them, will go to
a competitor who will.
The quality of service is realised by the customer and is interpreted and perceived by him or her.
As mentioned, this means that quality of service is not defined by those who deliver it but by how the
customer perceives the level of service delivery.
The point above is there is really not one ‘thing’ called a customer. Customers are all individuals
and come with individual needs and expectations. Consequently, service cannot be generic and there
is no “one fits all” service delivery.
As each hospitality organisation caters to a range of types of customers, known as target market
segments, the challenge lies in being able to provide an offering to meet their individual needs.
We have to recognize each type of customer and treat them as individuals.
We must actually act in a manner that acknowledges that without them the business ceases to
function, and we have no jobs.

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The old saying ‘it’s the customers who pay your wages, not the boss’ is true. It has been so
often used, it risks becoming ignored but if you have ever worked in an establishment where trade has
been going down, staff hours have been reduced and others are being laid off, you’ll know what it
truly means.
Unfortunately, all too many premises and staff members only realise how true this saying is
when it’s too late when customers are voting with their feet and spending their money somewhere
else.
It is a very sobering exercise to see how many other hotels, clubs, restaurants and bistros exist
for the customer to choose from.
Most other places offer a similar product so it is often the service, the standard, level and how
that service is delivered, that differentiates one place from another.
Customer buying cycle

•Trial
•Awareness
Pre- •Selection Post- •Satisfaction
purchase
•Knowledge Purchase
purchase
•Buy •Loyalty
•Consideration
•Advocacy
Moments of Truth (MOT)

Any time when a customer comes into contact with an organisation or service, they have an
opportunity to develop an impression or opinion of the service or organisation. These occasions are
called ‘moments of truth’ coined by Jan Carlzon (1989).

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Types of customers

 External customers

These are customers outside of the organization. They see the business only as a provider of
products/services. Often, they are not directly connected to the organization.

 Internal customers

These are customers considered as part of the organization. They are stakeholders who take part in
the running of the business.
The Customer is …
You may have seen what follows on posters and
postcards around the place. Sometimes it’s hung up in
staff rooms and sometimes it graces the walls of the
manager’s office.
It is a pretty good description of who the customer is and
sends us a fairly clear message about how we should treat
https://www.openpr.com/news/2019265/leis
them. Here are a few descriptions: ure-travel-market-analysis-by-top-key-players-
group

 “The customer is not dependent on us, we are dependent on them.


 The customer is not an interruption to our work, they are the sole reason for it.
 The customer does us a favour by walking in or phoning up, we don’t do them a favour by
serving them.
 The customer is part of our business, not outside it.
 The customer is not a statistic. The customer is a flesh and blood human being with feelings and
emotions.
 The customer is not someone to argue with or match wits with.
 The customer brings us their wants and needs and it is our job to satisfy them.
 The customer is deserving of the most courteous and respectful attention we can give them.
 The customer is the lifeblood of our business, because without them there is no business.
“This is what a customer is”.

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