Is the Customer Always Right? Rethinking a Dangerous Service Myth

"The customer is always right." This phrase, long touted as gospel in the service sector, is printed on walls, chanted in training rooms, and whispered in tense complaint-handling meetings. But is it really true?

While there’s no denying the importance of customer satisfaction, taking this phrase at face value can lead to serious consequences — not just for service quality, but also for employee morale and organizational integrity.

Let’s unpack why this absolute belief needs a thoughtful reevaluation. Some real life scenarios I have observed are as follows:

1. Customers Can Be Unreasonable — and That’s Okay

Not every customer request is fair. Frontline employees often encounter customers who make exaggerated or unrealistic demands — some fueled by emotion, others by opportunism. In such cases, companies may choose to offer goodwill gestures to protect brand reputation. But employees should be clearly told:

“This was done to manage the situation, not because the customer was right.”

Blindly siding with the customer every time can disempower staff and set a dangerous precedent.

2. Fact-Finding Often Reveals the Truth

Many companies today rely on CCTV footage, recorded calls, and system logs to investigate complaints. More often than we’d like to admit, these reviews reveal that a complaint was exaggerated or completely fabricated. There are cases where the customer accused the staff of misbehavior — only for recordings to show the employee remained calm and courteous throughout. Such situations should be handled delicately but decisively.

3. Some Customers Game the System

An emerging challenge is the “discount-seeking complainer.” These are customers who know that by lodging a complaint, they may receive compensation — a waiver, discount, or gift. A 2015 research paper in the Journal of Consumer Research discussed this as “opportunistic complaint behavior” — a growing phenomenon where customers file complaints not to fix a genuine issue, but to gain something extra.

Without firm complaint-handling policies, these tactics erode both profitability and fairness.

4. The Habitual Complainers

Data often reveals repeat complainers — a small group of customers who account for a disproportionately large number of complaints. These individuals may use social media or regulatory threats to pressure staff. While some of their complaints might be genuine, many are part of a pattern of seeking attention, venting frustration, or manipulating outcomes.

Empirical research from service industries suggests that less than 5% of customers contribute to more than 30% of complaint volume (ASQ, 2020). Such patterns warrant a more strategic response, rather than knee-jerk appeasement.

5. Support Employees, Don’t Sacrifice Them

One of the biggest leadership missteps is blaming staff before investigating. If an employee is reprimanded based on a customer’s accusation — and later found to be innocent — the damage to motivation, trust, and morale is already done.

A better approach is a two-fold message:

• We value and act on all customer feedback.
• We equally support and trust our employees — unless facts suggest otherwise.

6. Sometimes, It’s Okay to Let a Customer Go

There are rare cases where a customer becomes a chronic source of toxicity — someone who drains time, demoralizes staff, and contributes little to revenue. Such customers are often:

• Habitual complainers
• Verbally abusive
• Quick to escalate
• Resistant to resolution

If they violate ethical boundaries or disrespect employees repeatedly, leadership may even need to end the relationship, professionally and within legal frameworks. This should however be reserved as a last option in very rare circumstances.

Final Thoughts

While “The customer is always right” remains a classic mantra, its true value lies in thoughtful interpretation, not blind adherence. Today, delivering exceptional customer experiences requires more than just pleasing the customer—it demands a careful balance between customer satisfaction and team well-being. It’s not easy, but it’s worth it. When your strategy is grounded in empathy, fairness, and a clear vision, you’re not just serving your customers—you’re building a sustainable, people-first business. And that’s the real win.