Saturday, July 3, 2010

...the customer is NOT always right

I know what you are thinking, I have lost my mind…. of course the customer is always right. Sorry to say but that is bad thinking. Now, the customer is always KING, that will never change but you have to understand that a customer is not always right.

A lot of the time the customer is wrong. Wrong about what is good for them, wrong about their needs, wrong about what furniture works well in their environment.

Always treat the customer as KING but don't fawn over them and agree with their choices if you know the choices are not good for them. Now, many times you won't be able to change a customer's mind. That's fine. You have done your best and that is all that matters. You can live with that. 

Always strive to be the best person you possibly can no matter what position you have at a company. Remember, whether you pick up a paycheck or not you are still working for yourself. Always strive to be a better person today than you were yesterday. Always look for growth as a person, as a salesperson, and as a business person. You won't regret.

But let's be honest...the customer is NOT always right.

One woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s [Kelleher, CEO of Southwest] desk, with a note: ‘This one’s yours.’

In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’”

The phrase “The customer is always right” was originally coined by Harry Gordon Selfridge, the founder of Selfridge’s department store in London in 1909, and is typically used by businesses to:

  • Convince customers that they will get good service at this company
  • Convince employees to give customers good service
Fortunately more and more businesses are abandoning this maxim – ironically because it leads to bad customer service. Why?

#1: It makes employees unhappy
Gordon Bethune is a brash Texan (as is Herb Kelleher, coincidentally) who is best known for turning Continental Airlines around “From Worst to First,” a story told in his book of the same title from 1998. He wanted to make sure that both customers and employees liked the way Continental treated them, so he made it very clear that the maxim “the customer is always right” didn’t hold sway at Continental.

In conflicts between employees and unruly customers he would consistently side with his people.

“When we run into customers that we can’t reel back in, our loyalty is with our employees. They have to put up with this stuff every day. Just because you buy a ticket does not give you the right to abuse our employees . . .”

So Bethune trusts his people over unreasonable customers. What I like about this attitude is that it balances employees and customers, where the “always right” maxim squarely favors the customer – which is not a good idea, because, as Bethune says, it causes resentment among employees.

Of course there are plenty of examples of bad employees giving lousy customer service. But trying to solve this by declaring the customer “always right” is counter-productive.

# 2: It gives abrasive customers an unfair advantage
Using the slogan “The customer is always right” abusive customers can demand just about anything – they’re right by definition, aren’t they? This makes the employees’ job that much harder, when trying to rein them in.  Also, it means that abusive people get better treatment and conditions than nice people. That always seemed wrong to me, and it makes much more sense to be nice to the nice customers to keep them coming back.

#3: Some customers are bad for business
Most businesses think that “the more customers the better." But some customers are quite simply bad for business.  Danish IT service provider ServiceGruppen proudly tell this story:

One of our service technicians arrived at a customer’s site for a maintenance task, and to his great shock was treated very rudely by the customer. When he’d finished the task and returned to the office, he told management about his experience. They promptly cancelled the customer’s contract.

Just like Kelleher dismissed the irate lady who kept complaining (but somehow also kept flying on Southwest), ServiceGruppen fired a bad customer. Note that it was not even a matter of a financial calculation – not a question of whether either company would make or lose money on that customer in the long run. It was a simple matter of respect and dignity and of treating their employees right.

Remember: Any customer worth keeping appreciates the effort you've put into trying to maintain their business, while protecting your own. They'll also admire you because you don't waver from what you know to be good advice, just because they've challenged you.

You know? Sometimes it's ok to say no to a customer...regardless of the economy.

No comments: