Home > Business management, Buyer behavior > The customer is always right.

The customer is always right.

A recent Harvard Business School post (Create a Simple Strategic Principle – Management Tip of the Day – September 23, 2010 – Harvard Business Review.) is about strategic principles.  Having a strategic principle against which employees can test their decisions helps companies stay focused on the most important business.  The customer is always right is one such principle.   

We know that the customer is not always right.  There are customers who play games, who get close to or cross over the ethical line, or who aren’t profitable. These are the customers we don’t want.  It is management’s job to avoid acquiring or get rid of these customers…what the accounting firms call “selectivity.” 

When management establishes and diligently oversees policies to screen out undesirable customers, they can confidently ask employees  to make decisions based on the principle that the customer is always right.  That’s a recipe for business success.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: