Terms

Consumer

A consumer is an individual or group who purchases goods or services for personal use, acting as the final user in the economic distribution chain. While often confused with a "customer"—the person who buys a product—the consumer is specifically the one who ultimately uses it, a distinction important in both legal and business contexts.

Importance of Consumers in the Market

Consumers are the engine of any capitalist economy. Their demand for goods and services is the primary motivation for producers to create and innovate. Without this consumption, the entire economic cycle would stall.

Beyond just purchasing, consumer preferences directly shape market dynamics and trends. Businesses compete to meet these evolving needs, leading to better products and services. This influence extends from product design to marketing strategies, placing the consumer at the center of business.

Consumer Behavior Trends

Modern consumer behavior is rapidly evolving, driven by technological advancements and a shift in societal values. Consumers are no longer passive recipients but active participants in the marketplace, shaping how businesses operate. This has led to several key trends that define the current landscape.

  • Personalization: demanding experiences and products that are highly tailored to individual needs and preferences.
  • Prosumerism: shifting from passive consumption to actively co-creating products and influencing brands through online content.
  • Sustainability: showing a strong preference for eco-friendly products and supporting companies with ethical practices.
  • Digitalization: increasingly using online platforms for every stage of the buying journey, from discovery to post-purchase reviews.

Consumer vs. Customer

While the terms are often used interchangeably, key distinctions determine business strategy.

  • Consumer: The end-user of a product, who may not be the purchaser. Targeting consumers allows for personalized marketing and direct feedback, which is ideal for B2C companies building brand loyalty. However, their individual purchasing power is lower. Mid-market firms often target consumers to differentiate themselves in crowded markets.
  • Customer: The individual or organization that purchases the product. Targeting customers is effective for B2B or wholesale models, as they hold the buying power and may purchase in bulk. The disadvantage is a potential disconnect from the end-user's needs. Enterprises often focus here for large-scale distribution contracts.

Rights and Responsibilities of Consumers

Consumers are protected by a set of fundamental rights that ensure fair and safe transactions in the marketplace. These rights are balanced by responsibilities that empower consumers to make informed decisions and act ethically. This dual framework fosters a healthier, more transparent economic environment.

  • Safety: to be protected from hazardous goods or services.
  • Information: to be given the facts needed to make an informed choice.
  • Awareness: to be critical and conscious of prices and quality.

Impact of Technology on Consumer Habits

Technology, particularly the internet and mobile devices, has fundamentally reshaped the consumer landscape. It has empowered individuals with unprecedented access to information and a greater voice in the marketplace. This digital shift has created new habits and expectations that businesses must now navigate.

  • Empowerment: Instantly researching products, comparing prices, and reading online reviews before purchasing.
  • Personalization: Expecting tailored recommendations and marketing based on browsing history and past behavior.
  • Convenience: Shopping anytime, anywhere through e-commerce and mobile apps with fast delivery options.
  • Prosumerism: Evolving from passive buyers to active co-creators who influence product development online.
  • Engagement: Interacting directly with brands through social media, fostering a two-way dialogue.

Frequently Asked Questions about Consumer

How does a B2B company identify its end consumer?

B2B firms identify consumers by studying their client's end-users. This involves analyzing market data and user feedback to understand who ultimately uses the product or service, which helps refine their offerings and marketing to better support their immediate customer's success.

Isn't focusing on the customer more profitable than the consumer?

Not always. While the customer makes the purchase, consumer satisfaction drives long-term loyalty and repeat business. Neglecting the end-user's experience risks churn, making a consumer-centric view crucial for sustainable profitability and brand strength in competitive markets.

How has the role of the consumer changed with digital marketing?

Consumers have evolved from passive buyers to active "prosumers." They co-create value through reviews and social media, directly shaping brand perception and product development. This shift demands that businesses engage in constant dialogue and respond to real-time feedback to stay relevant.

Other terms

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Serviceable Obtainable Market

Serviceable Obtainable Market (SOM) is the portion of the market you can realistically capture with your current resources, sales, and marketing.

Serviceable Obtainable Market

Sales and Marketing Alignment

Sales and marketing alignment means both teams work in sync, sharing goals and data to boost lead quality, conversions, and company revenue.

Sales and Marketing Alignment

Sales Director

A Sales Director leads a sales team, develops strategies, and is responsible for meeting a company's revenue targets.

Sales Director

Outbound Sales

Outbound sales is when reps proactively contact potential customers through cold calls or emails to generate leads and build a sales pipeline.

Outbound Sales

Digital Sales Room

A Digital Sales Room is a private online space where sellers share all relevant content with buyers to streamline the sales cycle.

Digital Sales Room

Pain Point

A pain point is a specific, recurring problem your target customers face, causing them frustration, inefficiency, or added costs.

Pain Point

Applicant Tracking System

An Applicant Tracking System (ATS) is a software application that manages your entire hiring and recruitment process from a single dashboard.

Applicant Tracking System

Sales Plan Template

A sales plan template is a reusable document that outlines your sales strategy, goals, and tactics, providing a clear roadmap for your team.

Sales Plan Template

Closed Question

A closed question is a type of query that elicits a simple, often one-word answer like 'yes' or 'no,' or a specific, factual response.

Closed Question

Target Account List

A Target Account List (TAL) is a focused list of high-value companies that a business specifically aims to convert into customers.

Target Account List

Cost Per Click (CPC)

Cost Per Click (CPC) is a digital advertising model where an advertiser pays a fee each time one of their ads gets clicked by a user.

Cost Per Click (CPC)

Voice Search Optimization

Voice search optimization is the process of optimizing your content, SEO, and online listings to appear in and rank for voice-based searches.

Voice Search Optimization

SFDC

SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.

SFDC

Nurture Campaign

A nurture campaign is a series of automated messages designed to build relationships with potential customers and guide them toward a purchase.

Nurture Campaign

Revenue Operations (RevOps)

Revenue Operations (RevOps) is a business function that aligns a company's sales, marketing, and customer service teams to drive predictable revenue.

Revenue Operations (RevOps)

Customer Loyalty

Customer loyalty is a customer’s devotion to a brand, shown by their repeat purchases and engagement, driven by positive experiences and trust.

Customer Loyalty

Infrastructure as a Service

Infrastructure as a Service (IaaS) is a cloud computing service that offers essential compute, storage, and networking resources on-demand.

Infrastructure as a Service

Scalability

Scalability is a company's ability to handle increased workloads or market demands without a drop in performance or a spike in costs.

Scalability

Psychographics

Psychographics categorizes people by their attitudes, interests, and lifestyles, revealing the 'why' behind their purchasing decisions.

Psychographics

Quality Assurance

Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.

Quality Assurance

HubSpot

HubSpot is a customer relationship management (CRM) platform with tools for marketing, sales, and service, all aimed at helping businesses grow.

HubSpot

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the predictable income a company expects to receive from its customers over a one-year period.

Annual Recurring Revenue (ARR)

Load Testing

Load testing is a type of performance testing that determines how a system behaves under both normal and anticipated peak load conditions.

Load Testing

Business Intelligence

Learn about business intelligence, including key components of business intelligence, the role of BI in decision making, business intelligence tools and techniques.

Business Intelligence

Touches

Touches are the individual interactions you have with a prospect throughout the sales process, from emails and calls to social media messages.

Touches

Technographics

Technographics is data that outlines a company’s technology stack, helping B2B teams identify prospects based on the software and hardware they use.

Technographics

Email Personalization

Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.

Email Personalization

Cost Per Impression

Cost Per Impression (CPI) is the price an advertiser pays for each time their ad is displayed to a user, irrespective of clicks.

Cost Per Impression

AI Sales Script Generator

An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.

AI Sales Script Generator

Account View Through Rate

Account View-Through Rate (AVTR) is the percentage of target accounts that see an ad and later visit your website without clicking on it.

Account View Through Rate

Demographic Segmentation in Marketing

Demographic segmentation divides a market into groups based on traits like age, gender, and income, allowing for more targeted marketing efforts.

Demographic Segmentation in Marketing

Spiff

A spiff is a short-term sales incentive, often a cash bonus, paid directly to a salesperson for selling a specific product or service.

Spiff

Product-Led Growth

Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.

Product-Led Growth

Hybrid Sales Model

A hybrid sales model blends traditional and digital sales methods to engage customers across multiple channels and buying preferences.

Hybrid Sales Model

Loss Aversion

Loss aversion is our tendency to feel the sting of a loss more acutely than the pleasure of an equivalent gain.

Loss Aversion

Employee Advocacy

Employee advocacy is the promotion of an organization by its staff members, who share positive messages and content through their personal networks.

Employee Advocacy

Electronic Signatures

An electronic signature is a digital method for getting consent on electronic documents. It's a legally binding way to sign agreements online.

Electronic Signatures

Custom API integration

A custom API integration is a bespoke connection between software, enabling them to communicate and share data to meet unique business requirements.

Custom API integration

Revenue Intelligence

Revenue intelligence is the process of collecting and analyzing customer data to provide insights that help sales teams make smarter decisions.

Revenue Intelligence

Deal Closing

Deal closing is the final step in a sales cycle. It's when a prospect signs a contract and officially converts into a paying customer.

Deal Closing

User Testing

User testing involves observing real users interact with a product to identify usability issues and improve the overall user experience.

User Testing

B2B Marketing Channels

Learn about B2B marketing channels, including maximizing B2B channel effectiveness, & exploring digital vs. traditional channels.

B2B Marketing Channels

Lead Qualification

Lead qualification is the process of determining which prospects are most likely to become paying customers based on predefined criteria.

Lead Qualification

Lead Qualification Process

The lead qualification process is how you determine which prospects are most likely to become customers by evaluating them against specific criteria.

Lead Qualification Process

Outbound Leads

Outbound leads are potential customers a business proactively contacts through outreach like cold calls, emails, or social media.

Outbound Leads

Video Hosting

Video hosting is a service that allows users to upload, store, and share video content online, making it accessible for playback anywhere.

Video Hosting

Marketing Budget Breakdown

A marketing budget breakdown is a detailed plan that allocates your total marketing funds across various channels, campaigns, and activities.

Marketing Budget Breakdown

Soft Sell

A soft sell is a low-pressure sales tactic that uses subtle persuasion and relationship-building to gently guide customers toward a purchase.

Soft Sell

Adobe Analytics

Adobe Analytics is a leading web analytics solution for gaining real-time insights into user activity across websites and mobile applications.

Adobe Analytics

Robotic Process Automation

Robotic Process Automation (RPA) uses software bots to mimic human actions and automate repetitive, rules-based tasks on digital systems.

Robotic Process Automation

Buying Committee

A buying committee is a group of stakeholders within an organization who are jointly responsible for making major purchasing decisions.

Buying Committee

Sales Development Representative (SDR)

A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.

Sales Development Representative (SDR)

LPI

LPI, or Lead Per Inquiry, is a key metric that measures how many leads are generated from each inquiry in a marketing campaign.

LPI

Vertical Market

A vertical market is a niche where businesses cater to a specific industry or group of customers with specialized needs, not the mass market.

Vertical Market

Salesforce Object Query Language

Salesforce Object Query Language (SOQL) is a query language used to search your organization's Salesforce data for specific information.

Salesforce Object Query Language

Multi-touch Attribution

Multi-touch attribution is a marketing analytics method that credits multiple touchpoints on the customer journey for a conversion.

Multi-touch Attribution

Quarterly Business Review

A Quarterly Business Review (QBR) is a recurring meeting to assess performance against goals and align on strategy for the next quarter.

Quarterly Business Review

Sales Demo

A sales demo is a presentation where a sales rep shows a prospect how a product or service works and solves their specific problems.

Sales Demo

Digital Strategy

A digital strategy outlines how your business will use online channels, data, and technology to achieve its goals and connect with customers.

Digital Strategy

Complex Sale

A complex sale features a long sales cycle, multiple stakeholders, and a high-value transaction, demanding a strategic, consultative approach.

Complex Sale

Sales Kickoff

A sales kickoff (SKO) is an annual event for a sales team to celebrate wins, align on goals, and get motivated for the upcoming year.

Sales Kickoff

Workflow Automation

Workflow automation uses rule-based logic to run a sequence of tasks that would otherwise require manual human effort to complete.

Workflow Automation

Compounded Annual Growth Rate

Compounded Annual Growth Rate (CAGR) measures the mean annual growth of an investment over a specified period of time longer than one year.

Compounded Annual Growth Rate

Click-Through Rate

Click-through rate (CTR) is a metric that measures the percentage of people who click on a specific link, ad, or call-to-action.

Click-Through Rate

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance

Ad-hoc Reporting

Ad-hoc reporting is the creation of one-off reports to answer specific business questions as they arise, providing instant, targeted insights.

Ad-hoc Reporting

Unique Value Proposition (UVP)

A Unique Value Proposition (UVP) is a concise statement that clearly communicates the unique benefit a customer gets from your product or service.

Unique Value Proposition (UVP)

Sales Playbook

A sales playbook is a guide that outlines your sales process, best practices, and tools to help reps sell more efficiently and consistently.

Sales Playbook

Account-Based Sales Development

Account-Based Sales Development (ABSD) is a focused strategy where SDRs target key stakeholders within specific, high-value accounts.

Account-Based Sales Development

No Spam

“No Spam” is a commitment to sending only relevant, solicited messages. It means avoiding bulk, unwanted emails to respect the recipient's inbox.

No Spam

B2B Buyer Intent Data

Learn about B2B buyer intent data, including sources and types of buyer intent data, & key benefits of leveraging buyer intent data.

B2B Buyer Intent Data

Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a system of integrated software that businesses use to manage and automate their core day-to-day processes.

Enterprise Resource Planning

Cold Calling

Cold calling is a sales tactic where reps contact potential customers by phone who haven't previously expressed interest in their product or service.

Cold Calling

Inbound Lead Generation

Inbound lead generation is the process of attracting potential customers to your business with valuable content and tailored experiences.

Inbound Lead Generation

Request for Proposal

A Request for Proposal (RFP) is a formal document that outlines a project's needs and invites qualified vendors to submit bids to complete it.

Request for Proposal

Cloud Storage

Cloud storage is a service model where data is stored on remote servers and accessed from the internet, rather than on a local drive.

Cloud Storage

Account

An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.

Account

Subject Matter Expert

A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.

Subject Matter Expert

BAB Formula

Learn about BAB formula, including implementing BAB in sales strategies, crafting an effective BAB pitch, & comparing BAB with other sales frameworks.

BAB Formula

Lightning Components

Lightning Components is a UI framework for building dynamic web apps for mobile and desktop devices on the Salesforce Lightning Platform.

Lightning Components

Programmatic Display Campaign

Programmatic display campaigns use automation to buy and sell digital ad space in real-time, targeting specific audiences across the web.

Programmatic Display Campaign

GDPR Compliance

GDPR compliance means following the EU's strict data protection laws to ensure the secure and lawful handling of personal data.

GDPR Compliance

Regression Testing

Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.

Regression Testing

Email Engagement

Email engagement measures how your audience interacts with your emails. It includes key actions like opens, clicks, replies, and forwards.

Email Engagement

Brag Book

Learn about brag book, including crafting your outstanding brag book, essential components of a brag book, & brag book vs. resume: unveiling the differences.

Brag Book

Request for Information

A Request for Information (RFI) is a formal process for gathering information from potential suppliers before issuing a more detailed proposal.

Request for Information

Nurture

Nurture is the process of building relationships with potential customers, guiding them through the sales funnel with personalized communication.

Nurture

Cloud-based CRM

A cloud-based CRM is a customer relationship management tool hosted online, letting teams access and manage customer data from anywhere.

Cloud-based CRM

Expansion Revenue

Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.

Expansion Revenue

Git

Git is a distributed version control system that tracks changes in code, allowing developers to collaborate and manage project history effectively.

Git

Google Analytics

Google Analytics is a web analytics service that tracks and reports website traffic, offering insights into user behavior and marketing effectiveness.

Google Analytics

Employee Engagement

Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.

Employee Engagement

B2B Data Platform

Learn about B2B data platform, including key benefits of B2B data platforms, choosing the right B2B data platform, challenges in implementing B2B data platforms.

B2B Data Platform

Performance Plan

A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.

Performance Plan

Customer Relationship Management Systems

A Customer Relationship Management (CRM) system is a tool that centralizes customer data to help manage interactions and nurture relationships.

Customer Relationship Management Systems

Sandboxes

A sandbox is an isolated testing environment where new or untrusted code can be run safely without affecting the host device or network.

Sandboxes

Overcoming Objections

Overcoming objections is the process of addressing and resolving a prospect's concerns or hesitations to move a sale forward.

Overcoming Objections

Account-Based Everything

Account-Based Everything (ABE) is a strategy aligning sales, marketing, and success teams to focus on a specific set of high-value accounts.

Account-Based Everything

Freemium

Freemium is a business model offering a product's basic features for free, while charging for advanced or supplemental features.

Freemium

Account Mapping

Account mapping is comparing your customer list with a partner's to find common prospects and unlock new sales opportunities.

Account Mapping