Identify challenges in relationship development, including the somewhat controversial idea that "the

customer is not always right"

“The Customer Is NOT Always Right”

One challenge in developing relationships with customers is the idea that "the customer is not always
right." This can be a controversial idea, as some people believe that customers should always be treated with
respect and that their needs should always come first. However, there are times when a customer may be wrong
about something, and it is important for companies to be able to stand their ground and explain why the
customer is wrong. This can be a difficult challenge to overcome, but it is important to remember that the
customer is not always right. 

Not all customers are good relationship customers:

- wrong segment
- not profitable in the long term
- difficult customers

Why the customer is not always right

There are numerous, inter-related reasons as to why the customer is not always right. More importantly, giving
customers the ultimate negotiating power can upend and destroy the value that an organization creates for its
stakeholders. Reasons for why the customer is not always right include:

 Resource Constraints – every business operates under resource constraints that dictate the types of
products and services they can provide. Policies and procedures are one way to ensure that a business
operates within its constraints so that it can continue thriving. Letting customers defy these policies and
practices can dramatically impact operations and even run a business into ruin.
 Customers are not experts – while customers are great for understanding what they want from a business,
they are not the experts in the product or the organization. A series of interdependent decisions and
factors were considered in order to produce and deliver the product and service the consumer buys; a
customer request may not actually be feasible given all of these factors.
 Diminished value of employees – tilting all negotiating power to the customer leaves employees with no
authority or autonomy over their role. This can become incredibly demoralizing for frontline employees
who shoulder most of the burden of a disgruntled customer. The lack of empowerment and authority can
breed resentment and can lead to lower performance, toxic work culture, and high turnover.
 Drives divide between management and employees – adopting a customer is always right policy requires
enforcement of the policy by management. This reads as though employees cannot be trusted to resolve
issues within the business constraints and signals that employees come last.
 Customers that are no good for business – if it costs more to service a disgruntled customer than the
revenue they generate then the business should cut its losses and drop the customer. The cost of the
customer being right can extend beyond real dollars including loss of employees, serious disruption in
optimized operations, and even irreversible damage to corporate culture.

Why The Customer Is Not Always Right - Professional Leadership Institute