BUSINESS RESEARCH

Customers: Who Are They? How Do You Serve Them?

Understanding who your customers are, and how best to serve them. is essential to the success of any organisation. This Hot Topic explores how to define and segment customers, identifies the importance of meeting needs and expectations, and offers practical strategies for delivering excellent service through both personal behaviour and organisational culture.

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Customers: Who Are They? How Do You Serve Them?

What is a Customer?

A customer is any individual or organisation that receives, uses, or benefits from the products, services, or processes provided by your business. Customers may be external - such as the public, clients, or partner organisations, or internal - such as colleagues and other departments (Johnston and Kong, 2011). Recognising both types is vital to ensuring consistent service across all touchpoints.

Types of Customers and How to Identify Them

Customers can be segmented in several ways:

  • Demographics: Age, gender, occupation, location
  • Behaviour: Buying patterns, service usage, complaints
  • Needs: Functional needs, emotional expectations, urgency
  • Relationship: One-time buyers vs. repeat or long-term customers

Identifying which customer group you’re dealing with allows you to personalise service and manage expectations more effectively (Kotler and Keller, 2016).

Why Customer Service Matters

Excellent customer service creates value, builds trust, and encourages repeat business. Poor service, by contrast, can damage reputations and cause customers to turn to competitors. According to research by Gazzoli, Hancer and Park (2010), perceived service quality directly influences customer loyalty, especially in competitive sectors.

Additionally, Zhao, Fu and Liang (2023) found that leaders who model strong customer orientation foster a positive team climate, which in turn enhances customer satisfaction. This suggests that customer service excellence relies not only on individual efforts but also on leadership behaviour and team culture. When employees perceive that their leaders prioritise customer needs, it strengthens their own service behaviours and improves outcomes.

Serving Customers Effectively

Key strategies include:

  • Active listening: Understand not just what the customer says, but what they mean
  • Empathy and emotional intelligence: Recognise and respond to customer emotions appropriately
  • Clarity and accuracy: Provide reliable, correct, and understandable information
  • Timeliness: Respond promptly to requests and queries
  • Problem-solving: Take ownership of issues and aim for first-time resolution

Arkadan, Macdonald and Wilson (2024) emphasise the need for a Customer Experience Orientation (CXO), a mindset that encourages journey-based thinking, identifying and resolving pain points, aligning internal behaviours with customer needs, and fostering cross-functional collaboration to ensure consistency across all customer touchpoints. This means great service is not just what happens in a moment; it’s designed and delivered across the whole organisation.

Digital and Remote Customer Service

In modern workplaces, much of customer interaction happens online or remotely. This increases the need for:

  • Clear written communication
  • Digital literacy
  • Ability to use CRM and ticketing systems
  • Understanding service across multiple channels (phone, email, live chat, social media)

These require slightly different skills but share the same goal: delivering a positive, seamless experience (Verhoef et al., 2015).

Meeting Diverse Customer Needs
Different customers have different communication preferences, cultural expectations, accessibility needs, and emotional triggers. Being inclusive means adapting your approach where needed, whether that’s using simpler language, offering translation support, or using alternative contact methods. Inclusive service not only meets legal expectations (such as the Equality Act 2010) but also broadens your organisation’s reach and improves perceptions of professionalism (Brady and Cronin, 2001).

Referenced techniques

Technique

Customer Relationship Management

This technique explains what Customer Relationships management (CRM) is, what benefits it can deliver, within which contexts it can be used, how it can be implemented and how CRM technologies can be deployed to support customer management strategies and objectives.

Technique

Customer-driven Strategy

Customer-driven strategy is an essential business philosophy that all organisations should embrace. The concept provides a detailed summary of the key elements of customer-driven strategy and offers critical implementation advice and success factors.

Technique

Customer Satisfaction

This concept discusses the notion of customer satisfaction and provides a critical examination of the strengths and pitfalls of organisational practice. The concept also suggests how to increase customer satisfaction by offering a step-by-step guide.

Technique

Customer Relationship Management Technology

The concept explains the importance of CRM for building and managing successful customer relationships. It describes the key components of modern CRM technologies and provides a summary of the strengths and weaknesses and what measures can be used to monitor the implementation of this technology.

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