Dictionary

Customer

“A person or organisation that pays for a product or service; the customer is not always the person who uses it.”

Why customer matters to a first-time founder

Customers create revenue by choosing and paying for the value your business provides. Knowing exactly who pays, why they buy, and what makes them stay keeps product, marketing, and service decisions grounded. In some models, the payer is not the person using the product. Confusing those roles can produce the wrong message, features, price, or support experience.

Examples of customer

A learning app is used by 500 pupils, selected by 20 teachers, and paid for by five schools. The schools are the customers because they buy the contracts. Teachers influence the purchase and pupils are users. Interviews with all three groups matter, but renewal pricing and procurement documents must address the schools’ needs and authority.

Common misunderstanding

A customer is not always the same as a user, consumer, lead, or beneficiary. The customer completes or funds the purchase; a user operates the product; a lead might buy later. Consumer law may protect an individual buying for personal use differently from a business buyer. The exact legal status and rights depend on the transaction and jurisdiction.

When to use it

Name the customer before designing an offer, setting a price, or choosing a sales channel. Write down who pays, who decides, who uses the product, and who can stop renewal. Revisit the answer when entering a new market or adding an intermediary. If nobody is willing and authorised to pay, you have interest or users, not yet a working customer model.