Basics III: Customers vs. clients in the construction industry: Why we only talk about target groups

In the construction industry, target groups are more diverse and complex: in addition to customers who buy directly, there are also clients who influence key decisions primarily on the basis of information. But how do you differentiate between these groups and what strategies are needed to address them specifically? Sometimes customers are clients at the same time. This article will help you to understand this.

This blog post - part of our series on technical marketing in the construction industry - offers practical insights and strategies for developing the right offer for each target group.

📚 Curious for more? Exciting case studies await you at the end to test your knowledge and climb the marketing Olympus of the construction industry! 🚀

In marketing, we often speak of ‘customers’, i.e. those who buy products or services and may use them directly or indirectly. Their decision is often influenced by the cost-benefit ratio, which is evaluated on the basis of available information and the specific context.

In marketing for the construction industry, however, this is much more complex. Here we also encounter clients – individuals or institutions whose decisions for or against an offer (product, software or service) are primarily based on theoretical information. Their choice is determined not only by hard facts, but above all by trust in the service and experience with the provider. For clients, price plays a rather subordinate role in the first phase of the decision-making process, since they initially focus on the quality and long-term benefits of an offer.

This dynamic is particularly challenging for marketing managers in the construction industry, since the decision in favour of a particular offer depends not only on price, but also on many factors such as trust, experience, technical requirements and the specific project constellation. Whether a target group acts as a customer or as a client depends heavily on the relationship between the offer and the type of use.

The difficulty of addressing customers and clients at the same time becomes particularly clear when a target group within the construction industry assumes both roles. A good example of this is a specialist planner who can be both a customer and a client for a supplier.

This dualism represents one of the biggest challenges in technical marketing for the construction industry.

Customer and client at the same time: an example from the construction industry

1. The specialist planner as customer:

   
   

   A specialist planner becomes a customer when they purchase or license a software solution from a provider (e.g. a software company for engineering applications). He pays fees for this software, whether in the form of a one-time payment, a subscription, or usage-based billing. Here, the specialist planner clearly acts as the customer of the software provider, since he acquires and uses a commercial product. The software supports him in creating calculations that are necessary for the planning and construction of a building project.

   
   

2. The specialist planner as a client:

   
   

   The calculations that the specialist planner performs with the software result in product specifications and technical recommendations These in turn are incorporated into tender documents or specifications. At this point, the specialist planner no longer acts only as a customer of the software provider, but also as a client, especially if the provider has integrated his own products as technical solutions into the software. The specialist planner's product recommendations have a direct influence on the decision of the client or architect

   
   

3. The duality of customer and client in the construction context.

   
   

   For the marketing manager of a software company in the construction industry, this means addressing the specialist planner both as a customer and as a client. This duality is typical of the construction industry. Specialist planners and other target groups not only act as users of a product, but also make a significant contribution to the marketing of a supplier's products through their recommendations and decisions.

   
   

   Marketing managers must therefore recognise that their target groups often play a key role as multipliers.

   
   

   • As a customer, the specialist planner consumes a product (the software) and expects security, user-friendliness and technical support.

     
     

   • As a client, he uses the software to make well-founded recommendations for construction projects, which in turn influence the planning and execution.

   
   

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Target groups in the construction industry

Due to these particularities and the frequent overlaps between the customer and client roles, this article will refer to the most important target groups in the construction industry by their usual designations or the terms used in the construction process – regardless of whether they take advantage of an offer, recommend it, specify it or ultimately consume and pay for it. These target groups include:

 Client

• Financier

• Architect

• Civil engineer (general)

• Structural engineer

• Inspector / building surveyor

• Engineers for the planning of technical facilities (TGA)

• Fire protection engineer

• Construction cost calculator

• Project manager

• Building information modelling (BIM) manager

• Contractor

• General contractor

• Prime contractor

• Subcontractor

• Site manager and his team on site

• Supplier

These target groups are not only traditional customers, but also clients who need to be advised or who recommend a quote and specify it. Marketing managers in the construction industry are faced with the task of developing tailored strategies that take into account both the needs of customers and the expectations of clients.

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The solution: marketing strategies for the construction industry

A successful marketing strategy in the construction industry must address both target groups equally.

Customers should receive messages that emphasise the functional benefits and practicality of a product. Arguments such as time savings, ease of use or cost efficiency appeal to this target group.

Clients, on the other hand, are persuaded by visions and long-term values – sustainability, energy efficiency or aesthetic advantages should be at the forefront here.

In addition, transparent communication plays a crucial role. A clear and effective message shows how the solution serves both sides.

‘Our insulation materials offer construction companies a fast and cost-effective solution while also ensuring maximum living comfort for building owners.’

For marketing managers, this means not only communicating technical details, but also emphasising the social and emotional values of a solution. Only if both sides are equally convinced can sustainable relationships and long-term success be achieved.

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SWOT-analysis as a tool

SWOT analysis can help marketers understand the different strengths, weaknesses, opportunities and threats of target audiences. Based on this, strategies can be developed that are tailored to specific requirements and meet the needs of both customers and clients.

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In the next step, the working methods and needs of the individual target groups are examined in more detail. Practical recommendations on how marketing strategies can be optimally adapted in the construction industry follow. This ensures that the duality of customers and clients not only remains a challenge, but is used as an opportunity for successful technical marketing. Marketing managers in the construction industry have an exciting and strategically important task ahead of them – it will be marketingtastic, we promise!

Questions that will take your marketing expertise in the construction industry to the next level!

Case study 1: The specialist planner as customer and client

A specialist planner uses engineering software that was developed by a software provider specifically for static calculations. The software contains product suggestions from the provider that can be adopted in service specifications. The specialist planner appreciates the user-friendliness and the possibility of using the suggested products directly for tenders.

Question: What role does the specialist planner play in this case?

A) He is only a customer because he has licensed the software.

B) He is only a client because he suggests products for projects.

C) He is both a customer and a client because he buys the software and passes on its recommendations.

D) He is neither a customer nor a client because he is only using the software on a trial basis.

Solution: C)

Explanation: The specialist planner is a customer because he licenses and uses the software. At the same time, he acts as a client because his product recommendations directly influence the decisions of the builders or architects. The duality is evident because he acts as a multiplier for the software provider's products.

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Case study 2: The target group ‘builder’

A builder is planning the construction of a sustainable office building. A supplier of insulation materials presents him with a solution that is both cost-effective and environmentally friendly. The supplier communicates that the materials are particularly easy to install, thus saving time and costs in the construction process.

Question: Which marketing argument is likely to convince the builder the most?

A) The easy workability of the insulation materials.

B) The long-term energy efficiency of the building.

C) The low purchase price of the materials.

D) The high availability of the insulation materials.

Solution: B)

Explanation: The client is primarily the customer. His decision is influenced by long-term values such as sustainability and energy efficiency, as these criteria affect the future use of the building. The processing or the price play a subordinate role for him.

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Case study 3: The general contractor as a customer

A general contractor decides to purchase precast concrete elements. The choice falls on a supplier that guarantees on-time delivery and offers the company extensive technical support. These precast elements will later be used in a project for a major client.

Question: What is the main criterion for the general contractor when making the selection?

A) The aesthetic added value of the precast elements.

B) The recommendation of the client.

C) The reliability and technical support of the supplier.

D) The sustainability of the prefabricated elements.

Solution: C)

Explanation: The general contractor is a customer whose focus is on reliability and technical support. These criteria are crucial because the general contractor must ensure that the prefabricated elements are delivered on time and can be processed without problems. Sustainability or aesthetic aspects are less relevant in this context.

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Further reading:

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