Reasons Why the Customer is Always Right

“The customer is always right” is a common phrase that we’ve heard several times. It is an idea created in 1909 by American-British retail magnate Harry Gordon Selfridge to assure customers of superb service. This phrase is now used worldwide and has been used to transform businesses across the globe.

It is a phrase many believe in like Shalom Lamm, an American real estate developer. Lamm believes the customer has every right to complain when the service is not what they expect. He understands that the customer is the core of every business and treating them in the right way will lead to the prosperity of any business.

Who Are These Customers?

The phrase refers to customers with legitimate concerns or complaints. These are customers that did not do what they paid for or have had terrible service. Companies and businesses need to have policies that handle the concerns of these customers. Let’s look at the top reasons why the phrase stands and is in use up to now.

Customers Make the Business

Customers are the core of every business. Any business without customers is an organization pitching ideas to stones. Every business requires customers to make money and stay afloat. The customers must be treated right to feel appreciated and welcomed to come a second time.

The love and loyalty of a customer are everything to run a successful business. Businesses spend thousands and millions of dollars in advertising to get new customers. Surely businesses would not want to lose the same customers they spent a lot to acquire.

Sets a Standard for Customer Service

This phrase helps set a standard for customer service in your business. The customer service department will strive to achieve excellence knowing the importance of this phrase. Businesses need to have efficient communication channels. This helps customers find quick and easy solutions to problems regarding any product or service.

Businesses sometimes need to let the customer be right when there are disputes. It is a smart way to handle customers and build a brand.

Satisfied Customers Multiply

Happiness is contagious and when customers are happy, businesses can expect referrals. Shalom Lamm knows from experience that happy customers will always spread the word and refer you to new prospects. Most businesses get new customers from ads and referrals from previous customers.

Treating customers in the right way makes them brand ambassadors of your businesses out there. Most people who enjoy a 5-star experience always write a review on Yelp about the same.

Maintaining New Customers is Cheaper than Acquiring New Ones

With marketing channels becoming too expensive, it makes more sense to maintain old customers than acquiring new ones. It is cost-effective to keep old customers than find new ones. Customers that have bought from you previously are the best prospects with higher chances of buying again if treated right.

Unhappy Customers Can Be Expensive

Lastly, unhappy customers can lead to unnecessary expenses for businesses. A bad review will greatly hurt your business and push potential customers away.