Is the customer always right?

We’ve all heard the adage, “The customer is always right,” and if you’ve worked in customer service you know this is fundamentally false. The customer is often wrong. They try returning an item two weeks past the last day of returns. Try to return something you don’t even sell. Tell you the wrong thing then blame you when you do exactly what they asked of you. The list goes on.

However, once you reach management you understand that the phrase means something different, at least it did for me. As I was listening to the Manager Tools podcast they, I believe in the shot across the bow podcast I’ve linked to, explain that it is better to be effective than to be right. What this means is that it is better, in terms of leadership, to get a direct report to do what you say, than to agree with you that you’re right. The example I usually use is we had a policy at my old job that you must say “hello” to every customer who comes in and later “greet with engagement”. From numerous studies, it has been shown that good customer service is the best defense against theft. It doesn’t eliminate it, but it keeps the numbers down. Now we’ve tried explaining this, but people argue why it won’t work. Instead of trying to convince the sales associates we were right, we simply made it part of our shift evaluations. Knowing they are graded on this behavior, they execute the behavior, which not only leads to less theft but better customer service.

What does this have to do with the customer being right? I came to understand that the “customer is always right” doesn’t mean they know the rules or are ACTUALLY right, it just means that nothing good will come of arguing with them. Even if you win by denying them a refund or price change, what did you really win? Most likely you LOST a customer. You definitely didn’t win their praise, either online or to their friends.

I was just remembering an experience from years ago, probably close to 10, where a big box store sold me some frames that arrived broken. I ordered online, but figured since they were a national chain they’d take them back in store (this was before this was very common, but hell my little 7 store chain did it). They told me that since they didn’t sell those in the store I’d have to return them online. I tossed them in the garbage and bought all of our future frames and furniture purchases for my company from their competitors. They lost out on thousands of dollars because of this one interaction. The person who denied me the refund/replacement wasn’t rude, I just did not feel like dealing with a company that would make things more difficult on the consumer. Imagine if the sales clerk had also been rude, they would have lost my personal business, too.

The employee was right and I was wrong, but it still cost them my business. Was it worth it not to try and help me? I couldn’t even get a refund, because that had to be done online, too. I have authorized many returns, and in the majority of those transactions the customer spends more money right there and then. I was spot-checking some refunds for a report we began to run, and the majority of item returns had more money spent. Returned an item for $50, spent an extra $20. We had a fairly liberal return policy, even though because of the nature of the company everything went straight into the trash, and this was why. When it was strict we would see employees arguing with customers and denying them refunds or exchanges. How many customers did we lose before we made it more lenient? How is this good customer service?

It requires a different mental attitude. Instead of seeing the customer as an adversary you must vanquish, you try and help them solve a problem. We rarely give a refund, it’s mostly store credit, but I have, on occasion, authorized the return of money. Knowing that people who bring in an item usually spend more money, means that giving the occasional refund is not that big a deal. They will probably come back and spend even more. With most point of sale systems, you can track these things and can spot a customer who abuses the system.

“The customer is always right” requires you and your staff to see customers as people that need help. Instead of trying to convince the customer of how it is not your company’s fault, or that it’s our policy that…, instead listen to them and figure out how to make them happy and leave satisfied. Sometimes you won’t be able to satisfy them, and sometimes they’ll leave angry despite your best efforts, but as long as you try, it will go a long way.