Is the Customer Always Right - Essay Example

Some Marketers Believe That The Is Always Right of the CGSR: level of the department or college: the of the name of the author: key words: Customer, strategic management, ethics, product, customer service Copyright, (name) , March, 2006. All Rights Reserved. Abstract This work observes the concept "The customer is always right" in terms of changing economic background. Experience shows that it is challenging for many companies to work and receive profit, basing upon this principle. There were three approaches worked out to change this concept due to the demands of present market reality. One of these approaches is based upon this concept, and it provides for customer-oriented strategy. The next approach described is the one that takes into consideration the interests of the company and employees, rather than customers' demands. The third one occupies the middle position, and calls for finding a common ground, where both the interests of the company and the customer will be satisfied. It is evident that all of these approaches cannot be regarded as the most effective strategy. Of course, all of them are to be observed and used while planning company's future. It seems that the third one provides the most favourable basis for creating effective strategy, but it also should be examined and completed. Some Marketers Believe That The Customer Is Always Right Management is an integral part of the modern society's activity. It is connected to all fields of activity and that is why it is necessary to know as much as possible about its laws and specificity. The directive philosophy in any strategic management development, no matter in the public or in private sector, are about appreciating what changes are required, how to realize and run these changes, and how to produce a schedule for supporting betterments that lead to better presentation. The problems of relationship between economy and ethics are examined and discussed by many scholars at present. More and more experts say about conflicts between these two spheres. But recently some of the most talented economists started to address most relevant problems in society at present. (Hunger) One of the founders of modern economics, Alfred Marshall wrote in his book that poverty and its elimination "give to economic studies... their chief and their highest interest". (qtd in Kabodian)But a complex structure of global economical processes today demonstrates that up-to-day ethical reflection is problematic today. And the statement of various economists to be occupied with making social "value-free" science, became a reason for ethicists and average customers to start a dialogue. (Kabodian) Amartya Sen, a scholar who was awarded Nobel Prize in Economics for establishing links between economy and ethics, states that economic strategies and methodologies are to be estimated in terms of their influence on the ability of individuals to function successfully in the society they belong to. This author points out that individuals should be treated as the agents of morality, possessing such features as responsibility, ability and freedom. The purpose, as defined by this author, is to view economic sphere and all other aspects of life through the scope of moral perspective. He adds the following remark on this topic: "What matters, finally, is how we see each other." (qtd in Hicks) It is not a secret that people are regarded and treated as customers within contemporary society. This concerns not only the sphere of consumption, but many other spheres of life, even those that are far from economy and finance. As Maier states, "In the business sector itself, "customer service," "customer satisfaction," and "customer loyalty" have become watchwords for marketing and strategic growth practices. From their market-based home, these concepts have seeped into other sectors". That is why understanding and evaluating the concept "customer is always right" has a significant meaning for many modern sciences and economic practice. Why is it considered that the customer is always right At first, because customer pays money for definite product or service, thus obtaining the right to possess it and use it. That is why customer has a right to demand that this product or service complies with his demands. In case something is wrong, the company must satisfy the customer's needs. (Becker) But there is one more aspect of this problem, and this aspect is often used by the opponents of his concept for proving its unfoundedness. It often happens that the company obeys to the customer's demands even in case he is not right just not to start conflict and keep this customer to bring him again later. It results in situation when the employee is forced to listen to unreasonable complaints of the customer, agree and repair the damage even if it was caused by the customer. Many marketers speak about moral and money losses that are caused by implementing this concept and think over changes that could improve the situation. (Dekenah) The concept "Customer is always right" is still relevant for many companies and firms, and is one of corner stones of strategic management. Multiple guides and instructions are worked out to provide effective and stable working process addressed to satisfying customers' needs and demands regardless of the degree of customer's rightfulness. These guides instruct managers and sellers how to attract consumer, satisfy his need and encourage this consumer come back again. These instructions include many various tips, but all of them derive from the statement that the customer is always right. Here are basic ideas of providing successful service based upon this concept: 1. It is suggested that this concept is to be written down in order every employee see it and follow it. This should be the main directive for those who contact the clients. It is recommended that this concept is developed and complemented with other customer-oriented principles, for instance, suggesting customers that are for some reason dissatisfied with the service, discounts at any time. This should be done even in case the company loses on it, as such policy will help to bring this customer back again. 2. The guides recommend establishing special support services to instruct employees how to gain service superiority over competitors. These services should teach employees how to prevent the problem or resolve it in case it occurs. 3. Those employees who succeed in delivering successful customer services should be awarded. This will encourage the rest of the staff and positively influence the working process as a whole. 4. The staff should be aware of how good services influence profit and perspective of the company in general. The employees should realize that their future depends upon their attitude to customers. 5. In case the company has the same level of quality and productivity as the competitors, customer services will be a deciding factor of attracting the consumers. 6. Customer services are to be developed and advanced constantly. 7. The customer is to be treated with love and respect. The most valuable features for effective customer services, as defined by the specialists are "attention, dependability, promptness and competence". (30 Ways to Show Your Customers They're Always Right) These are the basic ideas worked out by those who support customer-centered policies. It is evident, that implementing such concepts into practice demand much money and efforts addressed to teaching employees, promoting the ideas within the staff and supporting the results of their implementation. It is no wonder that more and more companies think over the changes in management and company policy as to prevent spending funds for customer-centered approach that doesn't bring so much as it is spent on it. According to researches carried out at the market at present, customer satisfaction has decreased within last 10 years, and customer-centered approach cannot prevent it. Thus, one of key issues thought over by specialists in strategic management is the efficiency of this approach. Many companies has rejected it, making customer and seller equal in the process of selling products or services. "Even the best companies screw up once in a while and it's hard to keep ALL customers happy ALL the time, but respect is a different matter all together. If you want to be treated with respect, you must be respectful towards other people. But sometimes it sure feels good to say goodbye to a customer, and to free yourself up so you have more time to take care of the good ones that are fun "to be of service"!" (Black, p. 48) The managers of these companies worked out special guides instructing employees how to keep up good service without obeying to customers' demands and whims that are often unreasonable. a. Emotions are to be avoided. If the problem occurs and a customer acts rude, employee should address his superior to resolve the conflict basing on the facts, but not the problems invented by unsatisfied customer. b. In case the business starts to bring less profit, it is advised to calculate how much time and money in spent on reactions to complaints, or settling down problems, or seeking the ways of satisfying the customer. Sometimes it would be more profitable to get rid of such annoying customer together with conflicts, complaints and loses connected to him. c. It is necessary to take into consideration that most problems occur due to lack of mutual understanding and communication. It is important to listen to customer attentively if they tell about the problems quietly without insulting employee, and correlate these problems with company's mission and purposes to find a common ground. d. The golden rule "Treat people the way they want to be treated" by Tony Allessandra should be taken into account. This is close to the concept "the customer is always right", but it is nevertheless different. It means that the consumer is to be respected, but it does not mean that the employee should be humiliated, as it often happens when the concept "the customer is always right" is in charge. (Freed) As both these conceptions are diametrically opposed, there is one more approach, which is closer to the middle. This approach is centered neither on client nor on employee; it resides on finding a ground favourable both for the employee and the customer: "No one is right all the time. However, your operating principle does need to center on the customer. And, for your purposes the customer is always right. Every successful business owner makes decisions based upon the perception of what customers want. To be successful, you have to offer the right products, at the right prices and offer merchandise when and where customers want it". (Dekenah) The scholars, supporting this approach, advice to take into consideration the viewpoint of the customer, rather than to be directed by it. The decisions made by employee should be sensitive to customer's needs. Of course, customers are attracted by quality services and convenient environment, and the company should provide this for them. This approach suggests working out an operating concept of how to deal with the complaints of the customers. These complaints appear even in terms of quality products or services, so such concept should be ready to use. The company should use these complains as the basis for development and improvements. It is possible to turn unsatisfied consumer into a satisfied consumer. And this does not demand much time and effort, the key features for this are patience and willingness to settle down the conflict. (Edmonds) Having observed these three approaches to customer service, it is possible to make the following conclusion: client-centered strategy has lost its efficiency and relevance and is to be changed. But the question remains - what changes are to be implemented as to reach the purposes both of the consumers and producers. The customers should receive the products or services they pay for, and feel satisfied with these products or services, and the company should sell the products or services and not lose on it. Probably, the most effective of three approaches described above is the one that occupies the middle position. The concept it is based upon takes into account both the interests of the customer and the company's profit. It also does not demand that the employee be tolerant to insults or humiliation in order to keep the customer. But this approach is to be provided with many theoretical instructions for the employees teaching how to communicate with the consumers quietly without losing patience. The aspect of language is extremely significant here, and many modern psychological theories point out this factor, because communication is a universal tool for resolving any conflict for mutual benefit of both sides. References Hicks, D. (1999). The customer is not always right. Sojourners. Available at http://www.findarticles.com/p/articles/mi_qa3849/is_199903/ai_n8829088/print Maier, T. W. (2001). Customer Service Is an Oxymoron. Insight on the News. Vol. 17, January 1. 30 Ways to Show Your Customers They're Always Right (2005). Entrepreneur.com. available at http://www.entrepreneur.com/article/print/0,2361,312114,00.html Becker, H. (2005) Is the Customer Always Right Available at http://www.halbecker.com/index.html Dekenah, M. (2002). The Customer Is Always Right...... Available at http://www.marcspages.co.uk/articles/index.htm Freed, J. (2004). The customer is always right Not anymore. AP Breaking News. Available at http://www.sfgate.com/ Kabodian, A. (1996). Customer Is Always Right!: Thought-provoking Insights on the Importance of Customer Satisfaction from Today's Business Leaders. McGraw-Hill Education Black, N. (2004). Two Sides to Every Coin...the Customer Isn't Always Right!Dnj Books. Edmonds, J. (2002). Caring for the Customer (Super S.). Butterworth-Heinemann Hunger, J.D, Wheelen, T. L. (2002) Essentials of Strategic Management. Prentice Hall. July 16, 2002. Read More