The Customer is Always Right? Wrong.

Another unhappy customer grabs me today. Won’t even wait till I get to the Reception Counter. Starts discussing her complaint in the shop, rather than somewhere more private.

Asks me for a “goodwill gesture” as a “faithful customer” straight after “I’ll be calling my MP”. Well, that is an empty threat, but it is hardly likely to engender my goodwill.

Finally says “well, I never signed my contract, so you can’t enforce it”. So I go to the back office and check. It’s signed. All the contracts are. You don’t get to buy or site a caravan here without signing. And it’s signed by both husband and wife.

“well, your contracts are illegal, anyway”. No. They are a legally binding contract. They are based on a model contract that was developed in consultation with the Office of Fair Trading. Recently reviewed following further OFT consultation in 2005. How less illegal can a contract be than one that is specifically approved by the government body set up to protect consumers?

The caravan industry gets bad press from time to time. Usually caused by an operator who does not comply with industry standard practice. Our trade association has close ties with local and national government departments, and consults and advises on how we can adopt “best practice”. I’m proud to go along with this. It makes excellent business sense to run your business in an ethical, transparent, fair and even way.

However, this customer, being treated exactly the same as others, isn’t happy. She wants special treatment. Special treatment that will allow her to sell an 18 year old caravan to an unsuspecting purchaser. All she cares about is getting paid.

She doesn’t care that the buyer will be buying a worn-out caravan that does not comply to current standards of safety, energy efficiency or heat insulation. Yet she thinks that I’m the one in the wrong, by refusing the sale. If she carried out the sale, she would be giving her buyer genuine grounds to be very, very unhappy. But if the complaint hit the media, it wouldn’t be “I bought this caravan privately and it’s not the caravan park’s responsibility”, would it.

Oh no. It would be “rich unscrupulous caravan park manager sells death-trap caravan and buyer is almost poisoned by fumes from old-fashioned water heater”.

So, throw your sling-shots, madam. I am looking after my customers. Even though you’re not.

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On a similar topic,  I found the following article:

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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:

  1. Convince customers that they will get good service at this company
  2. Convince employees to give customers good service

Fortunately more and more businesses are abandoning this maxim – ironically because it leads to bad customer service.

Here are the top five reasons why “The customer is always right” is wrong.

 

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. Here’s how he puts it:

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 . . .

We run more than 3 million people through our books every month. One or two of those people are going to be unreasonable, demanding jerks. When it’s a choice between supporting your employees, who work with you every day and make your product what it is, or some irate jerk who demands a free ticket to Paris because you ran out of peanuts, whose side are you going to be on?

You can’t treat your employees like serfs. You have to value them . . . If they think that you won’t support them when a customer is out of line, even the smallest problem can cause resentment.

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.

4: It results in worse customer service

Rosenbluth International, a corporate travel agency, took it even further. CEO Hal Rosenbluth wrote an excellent book about their approach called Put The Customer Second – Put your people first and watch’em kick butt.

Rosenbluth argues that when you put the employees first, they put the customers first. Put employees first, and they will be happy at work. Employees who are happy at work give better customer service because:

  • They care more about other people, including customers
  • They have more energy
  • They are happy, meaning they are more fun to talk to and interact with
  • They are more motivated

On the other hand, when the company and management consistently side with customers instead of with employees, it sends a clear message that:

  • Employees are not valued
  • That treating employees fairly is not important
  • That employees have no right to respect from customers
  • That employees have to put up with everything from customers

When this attitude prevails, employees stop caring about service. At that point, real good service is almost impossible – the best customers can hope for is fake good service. You know the kind I mean: corteous on the surface only.

5: Some customers are just plain wrong

Herb Kelleher agrees, as this passage From Nuts! the excellent book about Southwest Airlines shows:

Herb Kelleher […] makes it clear that his employees come first — even if it means dismissing customers. But aren’t customers always right? “No, they are not,” Kelleher snaps. “And I think that’s one of the biggest betrayals of employees a boss can possibly commit. The customer is sometimes wrong. We don’t carry those sorts of customers. We write to them and say, ‘Fly somebody else. Don’t abuse our people.’”

If you still think that the customer is always right, read this story from Bethune’s book “From Worst to First”:

A Continental flight attendant once was offended by a passenger’s child wearing a hat with Nazi and KKK emblems on it. It was pretty offensive stuff, so the attendant went to the kid’s father and asked him to put away the hat. “No,” the guy said. “My kid can wear what he wants, and I don’t care who likes it.”

The flight attendant went into the cockpit and got the first officer, who explained to the passenger the FAA regulation that makes it a crime to interfere with the duties of a crew member. The hat was causing other passengers and the crew discomfort, and that interfered with the flight attendant’s duties. The guy better put away the hat.

He did, but he didn’t like it. He wrote many nasty letters. We made every effort to explain our policy and the federal air regulations, but he wasn’t hearing it. He even showed up in our executive suite to discuss the matter with me. I let him sit out there. I didn’t want to see him and I didn’t want to listen to him. He bought a ticket on our airplane, and that means we’ll take him where he wants to go. But if he’s going to be rude and offensive, he’s welcome to fly another airline.

The fact is that some customers are just plain wrong, that businesses are better of without them, and that managers siding with unreasonable customers over employees is a very bad idea, that results in worse customer service.

So put your people first. And watch them put the customers first.

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3 Responses so far »

  1. 1

    Chris Moran said,

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

  2. 2

    Mousie said,

    Great stuff! Have you ever considered a management post at your local hospital? The NHS could certainly do with some of this kind of leadership!

    You’re tagged by the way :o)

  3. 3

    Amberly said,

    My sentiments exactly and nicely put – you’re compeltly right on mnost accounts and i like the new slogan ‘put your people first and watch them put the customer first.’

    Cheers


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