In the world of business, the oft-repeated mantra “The customer is always right” is a guiding principle. However, sometimes the sacrilegious yet inevitable truth is that the customer is not always right. To manage this constructively, it’s crucial to first recognise the myriad ways a customer might be mistaken and understand the underlying reasons.
The common scenario that many businesses encounter is when customers expect the impossible triad of excellence – top quality, rock-bottom pricing, and immediate service. Logically, providing all three concurrently is an insurmountable task. The best quality typically won’t be the cheapest, the cheapest won’t be the best, and the fastest may not be the cheapest or the best. Yet, customers still demand all three, highlighting an impracticality where they are clearly wrong.
There is a compelling argument, as posited by Hal Rosenbluth in his book, “The Customer Comes Second,” that prioritising your team’s needs first allows them to better serve your customers. Consequently, the frequency of customer issues decreases, and the probability of a customer being wrong becomes less frequent. This emphasis on team care helps cultivate a supportive culture where employees are more likely to stand up for each other when a customer berates a team member unjustifiably.
In the technologically advanced era we inhabit, many businesses offer complex products or services that may be misunderstood by customers. This misunderstanding can lead to the improper usage of the product or service, diminished value realisation, and complaints. In such situations, the customer is wrong, but it may be the business’s fault for inadequately educating them or not positioning the product or service correctly from the start. Hence, a business’s investment in customer onboarding, education, and initial positioning is vital to avoid such situations.
Sustainability is crucial to any business’s survival, and a part of achieving sustainability involves understanding that not every customer is suitable for your business. Regrettably, there are bad customers who can drain resources, constantly haggle over price, delay payments, or generate excessive issues that eat up valuable time. The Pareto Principle applies here, as in many businesses: 20% of customers deliver 80% of the profit, while the remaining 80% of customers only contribute 20%. Moreover, the same 20% may account for the majority of your business’s challenges.
This does not mean we must indulge all customer demands or endure bad customers. Instead, it’s a call to recognise that not all customers are right for your business. It’s essential to discern between good customers, who appreciate and pay for the value you deliver, and those who drain your resources. This understanding allows businesses to target and focus their efforts on the right customers, leading to a more sustainable and flourishing business.
The concept of “the customer is always right” isn’t infallible. From desiring an impossible triad of excellence to a lack of understanding about a product or service, the customer can be wrong. It’s important for businesses to discern this and create a supportive culture, invest in customer education, and focus on the right customers for sustainable growth. The key to flourishing in the business world might very well be understanding that sometimes, the customer is wrong.
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