The customer is not always right or is the customer always right? – The times have changed.

“The customer is always right” is a phrase that’s been drilled into businesses, employees, and even customers themselves. But it’s not always accurate, and in many cases, it’s doing more harm than good.

This phrase was revolutionary in its times because consumer rights were nonexistent and sellers had all the power - it demanded dignity for buyers. But now is the time of viral reviews and rising workplace burnout.

This blog dives into why the “customer is always right” mindset needs a change—and how companies can build customer loyalty without sacrificing their team’s dignity.

Table of Contents

meme customer is not always right

What Are the Origins of ‘The Customer Is Always Right’?

The phrase is often attributed to Harry Gordon Selfridge, founder of Selfridges, or Marshall Field, a retailer in Chicago. It was the early 1900s and businesses had less competitive markets to attract and retain customers.

Back then, “caveat emptor” was a legal term used for the buyers, which means “let the buyer beware.” So, the idea “the customer is always right” made a lot of sense. Businesses wanted to create a welcoming environment where customers felt valued, and this mantra became a way to stress exceptional service.

But today the business strategies have completely changed. Competition is high, customer expectations are higher, and employees are demanding better treatment.

So, this century-old saying isn’t relevant anymore.

Related Read: What is customer acquisition?

Why Has “The Customer Is Always Right” Become Outdated?

The phrase “the customer is always right” was created to prioritize customer dignity and exceptional service. But over a century later, this slogan is losing its shine because the world has changed.

For one, employees are no longer willing to put up with toxic work environments. For instance, a 2021 Pew Research study found that 57% of workers who left their jobs cited disrespect as a key reason for quitting. Employees want to feel valued and respected, and they’re not afraid to speak up or walk away if they’re not getting that.

why us workers left the job

Customers have changed, too. They care more about authenticity and transparency than ever before. They want to support businesses that treat their employees well and stand by their values.

And let’s not forget the rise of social media. One bad interaction can go viral in minutes, and businesses can’t afford to ignore the impact that has on their reputation.

Why the Customer Is Not Always Right: 5 Truths You Can’t Ignore

The phrase “the customer is always right” might sound noble, but in today’s world, it’s a ticking time bomb for businesses. Here’s why it’s time to let go of this phrase.

meme customer is always right

1. It Fuels a Toxic Workplace

Forcing employees to cater to unreasonable customer demands sends a clear message: “Your business’s dignity doesn’t matter.” It tells your employees that their feelings don’t matter and their professional judgement isn’t trusted.

The insistence on “the customer is always right” might force the employee into apologizing repeatedly, even when the customer was wrong. Over time, this not only diminishes worker’s confidence but also creates a workplace culture where employees feel undervalued.

2. It Rewards Bad Behavior

Imagine a customer demanding a refund for a 3-year-old product. Rewarding such actions (to “keep the peace”) basically is rewarding the bad behavior.

Customers who get their way by being rude or demanding are more likely to keep doing it. And why wouldn’t they? It works! See how fraudulent returns alone have cost retailers $103 billion in 2024. But for every entitled customer who gets what they want, there’s an employee who feels disrespected and a business that loses a little more integrity.

Related Read: How to Deal with Angry Customers

3. It is Rooted in a Bygone Era

The phrase emerged in the 1900s, that’s over a 100 years ago. Back then, businesses had the upper hand. Customers did not have many options and there wasn’t much competition. Today, customers have endless options to choose from. They have access to reviews and social media that empower them in so many ways.

Secondly, what worked once for a face-to-face interacting world, might not hold up in our digitally connected world. Instead of an unyielding customer-centric approach, businesses now need to balance the scales between customer satisfaction and operational sustainability. This shift calls for an approach that values both the customer and the employee.

4. Customers Aren’t Experts (and That’s Okay)

Another aspect to consider is that customers, as important as they are, don’t always have the expert knowledge of what’s best.

They might have an opinion, but that doesn’t mean they’re right. Always agreeing with their claims can cause confusion about the authenticity of your product. Whether it’s product limitations or the matters of service delivery, there are enough options where the customer’s perspective may be off-base.

Sometimes, customers just need help. Train your staff to explain product features and offer clear solutions. This is how you reduce repeat issues and build customer trust in your business.

At the end of the day, businesses have expertise for a reason. It’s perfectly okay—and sometimes necessary—to gently push back when a customer’s view might lead to misunderstandings.

5. It Sabotages Authentic Relationships

The whole point of any successful business is in genuine relationships—both with customers and employees but the whole point of “the customer is always right” is to build customer loyalty and relationship only. 🙂 Companies rigidly following “the customer is always right,” mantra, can create an imbalance between its customers and employees relationship - defined by a customer-sided power dynamic.

It is notable to understand that when employees feel respected and empowered by their employer, they naturally extend that respect to customers. Authentic relationships grow on empathy and shared goals—not on blind compliance.

How “The Customer Is Not Always Right” Helps Businesses?

Shifting away from the “customer is always right” phrase can bring positive changes in relationships with your customer and internal teams.

Prioritizing fairness vs. customer appeasement:

  • cuts unwanted costs
  • builds customer’s trust
  • and brings long-term profitability

“Customer is not always right” approach helps businesses set boundaries and build stronger brand goodwill.

If a business stops catering to unreasonable customer demands, it protects its bottom line and team success. Here’s how L.L. Bean saved $250 million annually after tightening its return policy to restrain abuse.

These strategies balance firm boundaries with mindful communication, and save brand reputation. In the longer run, businesses see improved customer lifetime value (CLTV) and bring the right customers to the business.

The outdated approach of “the customer is always right” may cost you more than you think in both immediate and long-term ways.

What Is The Cost Of “The Customer Is Always Right”?

This slogan is not just outdated, it is expensive. Here are four ways this slogan can cost you.

  1. Tolerating bad customers costs you good employees.
  2. Bad customers steal resources from good ones. Time spent placating unreasonable demands takes focus away from loyal clients.
  3. Some customers will never be happy. Chasing their approval wastes time and energy with no return.
  4. Reasoning with uninformed customer demands wastes resources. Customers rarely see the full picture of your operations.
  5. Unrealistic expectations cost you everything. Overpromising to please everyone risks your reputation and bottom line.

How “The Customer Is Not Always Right” Can Balance Service and Employee Happiness?

“The customer is not always right” has the ability to create a balance between excellent customer service and a happy workforce. The way is to empower your workforce - which only then leads to exceptional customer services.

Empowering employees starts with actionable protocols. Here’s how service and employee happiness balance can be achieved:

  1. Train teams to de-escalate conflicts and enforce policies. One way to do so is to conduct extensive in-house and customer surveys to identify high-risk interactions early. Try Churnfree for free fro its wide-range of survey options.
Churnfree
  1. Train managers to step in during hostile interactions.
  2. Post clear policies and train teams to enforce them kindly.
  3. Use tools to analyze sentiments to preempt conflicts. Hospitality giant Marriott uses AI tools to flag abusive language in reviews, protecting staff from unwarranted attacks.
  4. Protect staff to sustain long-term success by providing counseling and peer support networks.

This way you bring balance between employee and customer loyalty through fairness and not by forced compliance.

Also Read: What is the most direct cause of customer loyalty?

Conclusion

The question, “Is the customer always right?” isn’t always straightforward. It’s tempting to go above and beyond for every customer. But at the end of the day, every customer interaction is a two-way relationship. If it’s not mutually beneficial—or worse, if the customer is abusive—it’s okay to walk away.

So, the next time a customer shares feedback or raises a concern, consider whether it aligns with your business goals or not. If it does, fantastic—it’s a chance to improve. If it doesn’t, thank them for their input and focus on the customers who truly value what you offer.

Related Read:

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Customer service for retention to secure client loyalty

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Customer service interview questions

FAQs

Are there situations where the customer is wrong?

Absolutely, customers can be misinformed, make mistakes, or behave inappropriately. In such cases, it is important that you address the situation professionally so that the customer is satisfied with fairness and company policies.

How to tell a customer they are wrong?

Be transparent and do not hide anything. Give them all the facts and then explain to them what they are thinking wrong and what alternatives you are offering. Key is to be sensible and calm.

What are the benefits of supporting employees over unreasonable customers?

When you back up your team against unreasonable customer demands, you create a workplace where people feel valued. Happier employees stick around longer. A happy team will go the extra mile for your customers. The result? Fewer customers walking away and more staying loyal to your brand.