Importance of Internal and External Customers - Essay Example

The importance of external and internal customers is of equal importance for the survival of the business. According to Martinez & Hobbi (2008), the functions of both the internal and external customers are interrelated in affecting the efficiency of the business. Internal customers are the human capital that constitutes the factors of production. The expertise of the internal customers determines the quality of the output which influences the external customers. In a service industry, for example, the knowledge and skills of the employees influence the end product which determines the satisfaction of external customers.

In Hill & Allen (2007) the external customers also influence the operations of the organization. A service industry like the Insurance industry is usually operated by the needs and wants of the external customers. The needs or complaints of the external customers are normally factored in by the organization with great interest. In return, the organization executes its demand with effective conditions in order to suit its tastes and preferences.

Martinez & Hobbi (2008) explain that internal customers facilitate the marketing of the organization's services. The internal customers through effective communication and delivery of the services influence the customers’ perception. The Insurance Industry is one slippery sector that is entirely operated by the act of faith. The internal customers are required to fully disclose the benefits and terms and conditions of the policy so as the external customers can be convinced in order to purchase the product.

Hill & Alexander (2006) explain the external customers act as a measure of the organization’s performance. The effectiveness of an organization’s operations can be evaluated based on the external customers’ feedbacks. A company that pollutes the environment can receive negative comments regarding activities and vice versa. In addition, the quality of its services and products can be evaluated based on their numbers (sales), feedbacks, and support.

The services or products delivery of the internal customers is high on the organization’s support. The health sector, for example, is a vital industry that is hugely dependent on their motivation. Lack of effective intrinsic or extrinsic rewards can lead to disastrous service delivery by them (Martinez & Hobbi, 2008). Their performance level is highly dependent on their employers’ motivation.

The internal customers like the suppliers highly determine the effectiveness of the organization. If the suppliers deliver the materials at the wrong time, the company is sure to inconvenience its delivery. Additionally, if the suppliers deliver falseful materials, the company is going to face the consequences on its behalf (Martinez & Hobbi, 2008). Read More