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The customer is always right

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You always hear people say the customer is always right, but how often do companies stand by this policy?  Stew Leonards gets it.  They even carved this message into a large rock in front of their stores to make sure it was clear to their customers and employees.  If you are responsible for marketing, sales or service you should take a good look at your service policy.  It has been my experience that more often then not, companies try to prove to their customers that they are right, even if it means loosing a customer. It happened to me today with one of our smaller marketing partners.  I asked for a small refund because of an error in their service and the response I received was "the contract states...". 

Now there is a time and place for contracts.  However in this circumstance I don't care what a contract states.  Just show some good faith that you care about my problem and issue the credit.  99% of the companies we work with for this service will issue the credit and do so with a smile and an apology for the inconvenience.  The power of positive word of mouth is more effective then any contract or marketing effort while negative word of mouth travels faster, lasts longer and will make a contract seem insignificant.  I guess this company (intentionally leaving out the name - for now) doesn't understand those basic marketing principles.

Let's see how this plays out in the next few days but it doesn't look good for the relationship.

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2 Comments

[-] Posted by member1632216 on 08/21/2007 4:43 AM
I had a case with a customer once.
Our company is a family business and has a policy that when a customer buys goods to a certain amount, they will get a 10% discount; below that amount, it will be regular price. We talked to our employees about this policy and everyone understands it very well.
One day, a regular customer came in, bought our goods and the total amount due for his item was short of the required amount for the discount.
Because he saw me at the cash register on that particular day, and knew that I'm the owner, he still asked for the discount, and argued that my mom gave him discount in the past (I knew he was lying, 'cause my mom never gave discounts).
If I gave in to the customer's demand, I would be sending mixed messeges to our employees, but if I stood my ground and refuse the discount, I risk losing that customer.
Worse thing is, that particular customer will not ask for the discount if I were not at the cashier ringing him up that day.
In the end, he paid the full price, although he was very disappointed and unhappy.
So, was my action justified or for the sake of customer loyalty, should I have just given him the discount?
Any comment or advice appreciated.
Thanks!
[-] Posted by Josef Katz on 08/21/2007 7:46 AM
You had a policy and stuck to it. In my example Stew Leonards had a policy about returns and customer's opinions. They are not offering a discount. Overall I think you did the right thing (I am assuming the shortage was more then a few cents and that you pointed out a way to become eligible for the discount). The purpose of your discount was to reward customers who purchased a certain amount of product. If you gave the discount below that amount you would get on a slippery slope and before long everyone would be asking for the discount regardless of how much they spent. If customer loyalty is the concern you could set up a points type program that rewards every purchase over time with a discount or reward based on all their purchases. In your case the customer was asking for something extra. If your customer was asking to return a product because it was faulty then we would have another discussion.
Thanks for the note.
Josef
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