The Customer is Always Right, So Choose the Right One
The customer is always right.
This isn't a cliche; it's correct. No matter what any articles tell you about this saying be outdated, business owners know it still rings true. Customers keep the lights on.
Now, I'd argue we need to make a shift and say, "the customer is always right if you want them to keep paying you."?
If you want to blow up the sale, no problem; the customer can be wrong as all hell. However, if you're going to keep that customer, you'll have to listen to and correct their grievances.?
It's essential to segment B2C and B2B here a little bit, so I'll hop into how each should approach this saying and handle customers appropriately.
Let's start with B2C (business to consumer)
In these environments, retail workers aren't typically armed with the decision-making power to nix a sale because of demands from a customer. It's often in the company's best interest to (i) issue a refund or (ii) facilitate an exchange of product(s). Anyone who's worked in retail has most likely read and reread the company return policy before dealing with a customer issue.?
So how do you avoid customer issues in the B2C businesses?
First, it starts with product and product marketing. Your product should do what it says it will from the outset. Taking the time to educate the consumer before they purchase whatever you're selling will ultimately lead to less weight to carry by your customer service department on the backend of a transaction.?
Now let's look at B2B (business to business)
This is where it gets a bit tricky. In B2B, you shouldn't be an order taker but more so a trusted advisor to your client. That means although your customer may complain or want to go in a specific direction, it's your responsibility as their advisor to lead them on the correct path. However, decision-making power will ultimately lie with your client at the end of the day.
So if the customer is always right, you must choose the right customers for your business.
Using the matrix above, most issues come from the top-right quadrant. The high-paying/ high-headache customers. Although it feels like these customers are helping you keep the lights on, they are often doing more damage than good to your business.
Who do they hurt?
1. Your Staff
If you put your staff in front of demanding or rude clients, you're telling them you don't respect them as much as the bottom line. That's a recipe for disaster. Eventually, (i) the relationship with the client will hit a boiling point, and the deal will fall apart, and (ii) your staff will be emotionally drained/look for work elsewhere.?
2. Your Other Clients
You take the other clients you have on the books for granted because they pay on time, cause no headaches, and are great to work alongside. That is the wrong attitude. You should be doubling down your account management and services to the clients that are a joy to work with, not the other way around. Don't let the guise of invoice totals direct you away from serving the best customers to work with.?
3. Yourself?
If you, as the leader, manager, owner, etc., have to come in and 'save the day' regularly, it's a surefire sign you're dealing with a high-headache client. You might feel that you're helping the team by doing this, but it's far from the truth. Most times, you're actually (i) demeaning their decision-making ability and (ii) taking time away from your actual value add work within an organization.?
So, how do you choose the right customer?
Choosing the right customer starts with identifying who your customer is not. Listing the people you don't want to work with is the first step in finding out who you want to work with.?
Here are a few bullets from our internal "No-Fly List" document:
By creating a "No-Fly List" for your own company, you'll be able to quickly refer back when a lead comes in to see if they fit your pipeline.?
From here, write out what your dream client(s) looks like by creating a buyer persona.?Hubspot?has some good content to get you started with this. It's important to remember you can be fluid with your personas, and they?can?change over time.?
Before I go, I'll leave you with this: a bad customer can cost you more than your good customers can help you. Choose them accordingly.
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