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?

The customer is not always right due to a number of interconnected factors. Giving customers the
strongest negotiating position, however, can completely undermine and destroy the value that a company
creates for its stakeholders. The following are some explanations for why the customer is not always right:

 Resource Constraints - Resources are a limited resource for every business, which limits the kinds of
goods and services they can offer. One way to make sure a company operates within its boundaries so it
can keep thriving is through policies and procedures. Allowing customers to disregard these rules and
procedures can have a significant negative effect on business operations and even lead to its demise.
 Customer are not experts – Customers are excellent at letting businesses know what they need, but they
are not the organization's or the product's subject matter experts. A customer request may not actually be
possible given all of these factors; producing and delivering the good and service the consumer
purchases required a number of interdependent decisions and considerations.
 Diminished value of employees - When all negotiating power is shifted to the customer, employees loses
all control over their position. For front-line staff members who deal with a lot of irate customers, this
can become incredibly demoralizing. Low performance, a toxic workplace environment, and high
turnover can result from a lack of authority and empowerment.
 Drives divide between management and employees - Adopting a "customer is always right" policy
necessitates management enforcement. This communicates that customers come first and that employees
cannot be trusted to handle problems within the confines of the business.
 Customers that are no good for business - The business should cut its losses and stop serving a
dissatisfied customer if doing so costs more than they contribute to sales. Beyond actual monetary loss,
the cost of the customer being right can also include lost workers, serious disruptions in optimized
operations, and even irreparable harm to corporate culture.

Why The Customer Is Not Always Right - Professional Leadership Institute