The benefits of knowing the difference between a Customer and a User

It is essential to understand the key distinctions between a Customer and a User, as this can be a determining factor in the overall success or failure of your product. Essentially, a Customer is the individual who possesses the purchasing power and ultimately decides what to spend their money on, whereas the User is the person who will be utilizing the product itself. 

In the realm of B2C business, the Customer and User are typically one and the same, with the exception of instances where a product is purchased on behalf of someone else (such as a parent buying an app for their child). However, in the B2B world, the Customer and User are often two separate individuals. The Customer is the one who holds the budget and makes the decision to purchase the product, which is then utilized by their team or teams (i.e. the Users). 

It is critical to differentiate between these two distinct groups because as you build and sell your product, you must consider the unique benefits that your product offers to both. For example, your product may significantly streamline and simplify the User's job, which can be an incredibly compelling selling point for the Customer. However, if your product presents a potential security risk or does not comply with local data privacy laws, it is likely that it will not sell. 

To ensure the success of your product, it is of the utmost importance that you assess whether the Customer and User are one and the same, and if not, make certain that your product satisfies the needs and desires of both groups. By doing so, you can ensure that your product is not only purchased, but also utilized and embraced by your target audience.

Know the difference between Customers and Users for successful innovation.