Customer vs. user: Why the difference matters in product decisions

In product development, distinguishing between 'users' and 'customers' is crucial, especially as product complexity increases. While these terms may be interchangeable in simple B2C contexts, where the user and customer are often the same, their distinction becomes vital in B2B and B2B2C contexts. A user directly interacts with the product, while a customer is the one who pays for it, which can lead to different needs and priorities. Misunderstandings between the two can result in misalignment, flawed priorities, and poor decision-making. Companies like Salesforce and Booksy illustrate the importance of this distinction, where users and customers have different roles and expectations. Understanding and catering to both groups can lead to better product prioritization, planning, and communication, ultimately leading to more successful product development. Recognizing the separate needs of users and customers ensures clarity in internal communication and decision-making, making it essential for teams to create distinct user personas and be vigilant about who is financially responsible for the product.