“The customer is always right” defines the mentality of many companies’ customer service policies. A company often submits to a person’s complaint in fear of reputation damage. Companies’ eager-to-please approach sometimes attracts money-hungry customers who are not always right. Here are some examples of companies that maintained their dignity by recognizing the customer is not always right.
In 2008, during the recession’s lowest point, American auto industries’ reputation and sales suffered. Many Americans felt the main auto companies, such as General Motors, Ford and Chrysler, didn’t deserve government money to sustain their businesses. Ford encouraged any positive fan base but took legal action against a fan Web site named therangerstation.com when it used Ford’s logo to sell memorabilia. The fan site posted Ford’s charge of $5,000 to its site, but instead of admitting its fault, it denied the truth. Outraged fans reacted to the fine claiming that Ford picked on the “little guy.” When Ford’s social media director Scott Monty noticed this buzz he responded in a tweet stating that he would find out more information from the lawyers and get back to them. Monty provided the public with updates until the truth came out: therangerstation.com illegally profited from using Ford’s emblem. As American as it gets: The truth shall set Ford free.
Go to the mattresses (at Ikea). Just weeks before Ikea opened a store in Moscow, Russia, the local electrical service approached Ikea demanding a large bribe for the use of electrical power. How did Ikea react? They went to the mattresses. Instead of paying an outrageous fee, Ikea rented generators to support the grand opening. Ikea cleverly avoided Russian’s organized crime because they didn’t fear criticism or worse consequences—they did what was right.
So, companies, before you admit you’re wrong and beg your customers for mercy, evaluate the facts. I wish that I had realized the customer is not always right when I worked as a waitress.
3 Comments
November 2, 2009 at 3:11 pm
I agree with you that many customer service policies include the words “the customer is always right.” I also think that policy provides an opportunity for people to take advantage of the business. I have personally witnessed store employees be verbally abused by consumers who have a problem or make a statement. I agree with you that companies should evaluate the facts prior to admitting their wrong. Maybe businesses should implement the idea that they are innocent until proven guilty. I think it was smart of Scott Monty to respond to the threats through Twitter. He handled the sticky situation the correct way. I also think Ikea’s example was interesting. Many businesses face bribery frequently. The fact that Ikea did not give in shows that they are a strong business that everyone can count on to do the right thing.
November 2, 2009 at 11:46 pm
Hey, Emily! Thanks for the insight. I checked out Ikea’s blog to see if they mentioned the controversy in Russia, but found nothing. Although, if you are looking for an aesthetically pleasing blog to detract your studies go to http://theikeablog.com/.
November 4, 2009 at 7:17 pm
Katelyn,
I read with much interest your great article about the customer not always being right. I agree with your premise and maybe can add another dimension.
I teach some college Organizational Management courses and emphasize that a company must strive to be in conformance with customer expectations. That requires the company to be proactive in explaining the limits on quality and quantity of what they can provide and sometimes explaining why they can’t provide some unrealistic customer expectations.
For example, I was having lunch a while back at a popular restaurant and I normally ask for two extra sides of honey mustard. When I looked at the menu there was a small note attached inside that explained that they were sorry to limit giving extra honey mustard because they did not want that extra cost to force them to increase the price of a hamburger.
I gladly accepted that explanation and they remained in conformance with customer expectations.