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A customer is an individual or another business that buys goods or services from a business. Customers have needs: what a good or service must offer, and how it must be sold, for them to be willing to buy it.

The four main customer needs are price, quality, choice and convenience.

Customer needWhat it meansExample
PriceThe amount paid, and whether it fits the customer's budget or feels worth paying.A student with £35 to spend on a school bag looks for one within that budget.
QualityHow well made, reliable, long-lasting or effective the good or service is.The student checks the straps are strong and the fabric is waterproof, so the bag will last.
ChoiceThe range of options, such as sizes, colours, features or brands, so the customer can pick one that suits them.The student wants a bag with a laptop pocket in a colour they like.
ConvenienceHow easy and quick it is to buy and use, including location, opening hours, delivery, stock and payment.The student buys from a shop near home that opens after school, or orders online for next-day delivery.

The needs are linked. A bag that is cheap but falls apart quickly fails the quality need, and one that is strong but sold in a single plain design fails the choice need. A shop that has the bag in stock and is easy to reach meets the convenience need.

A business can be a customer too. A café buying coffee beans is a customer of its supplier, and its needs may include a trade price, consistent quality, a choice of roasts and reliable delivery.

Practise this