Russell Bell: Customer ain't always right

Russell Bell PHOTO/FILE

THERE is an old adage in business that the customer is always right and it is particularly prevalent in retail.

The true test of any retailer is how complaints are received and managed. Far from being a negative event these should be treated as an opportunity to learn and improve service.

In the past month, I have encountered a number of businesses where a product we had purchased was not up to standard - I am not sure why this has happened so often. But, when the message was delivered to the vendors, in each case they handled it in exactly the right way. In the case of a trampoline purchased online for the kids' Christmas, a replacement was given to us as compensation and the business owner explained clearly the cause of the substandard product.

In another case, it was also interesting in that we purchased two items at the same time from a retailer and one was substandard and the other one was outstandingly good. So to that particular retailer, thank you and well handled.

On the other hand, what do you do if the customer is wrong when a complaint is lodged? This will happen from time to time and may be due to a general misunderstanding leading to an expectation gap or, alternatively, said customer might be taking the Micky.

An expectation gap generally arises from an impediment to communication between a supplier and a customer or where the product simply does not match up to what was anticipated. It is incumbent on those selling the goods to explain clearly what is being purchased and the purpose to which it will be applied.

If a customer has the wrong end of the stick, many theorists espouse that you have them leave thinking they were right all along. The rationale is that they will be back for more at a later time. What this doesn't consider, however, is the time and effort that is invested in dealing with a customer who just doesn't understand. In many cases, it may be more beneficial for you that you politely direct them to your opposition!

It is important to understand the real cost of doing business with particular customers because it might be that the work required to keep them happy is a cost which exceeds the benefit of keeping them.

I guess the key is finding balance. And it will always be a positive if your business is known for going the extra mile, but my advice is not to get caught in situations where your investment in the sale exceeds the margin returned to you.

-Balance Consulting is a Whanganui consultancy and part of the Balance Group. We will be running customer service training workshops in the near future. Please call Russell on 021 244 2421 or John Taylor on 027 499 5872, if you are interested.