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Writer's pictureJanelle Ting

Customer Relationship Management 1.0

"The customer is always right" is a slogan coined by three successful retailers, Harry Gordon Selfridge, John Wanamaker, and Marshall Field, in the early 90s. It propagates the notion that customers should be treated as if they are always right, even in situations where it is clear they aren't.


This notion was well-received and brought in huge revenues for businesses that prioritised customer satisfaction. It worked in an era where it was common for big and powerful enterprises to exploit the consumers.


Although the intent behind this notion is noble, it has bestowed exceeding power to the consumers and led to many challenges in today's business landscape. The prevalence of social media further empowers consumers as it is easier now than ever to influence others with online reviews. A casual negative remark can have far-reaching impacts on small enterprises and freelance service providers especially.


As a small business owner and freelance florist, I place a high emphasis on customer satisfaction. It helps to build brand reputation and generates leads through positive WoM recommendations. On a personal level, seeing the smiles and appreciative texts from my customers brings meaning to my job. They are the reason why I can continue doing what I love, and I am always thankful for them.


However, two years into the business and after several encounters with difficult customers, I realised that "the customer is always right" is a flawed mentality that inflates one's sense of self-entitlement. Disturbingly, there are customers who threatened to report me to the police or post negative reviews on my social channels after I had refused a refund.

Screenshot of the conversation I had with a customer

Such encounters have taught me a lot about CRM and built my emotional resilience. My advice to new/ aspiring entrepreneurs is not to be afraid of rejecting unreasonable requests. Even today, I still find it hard to say no because the "the customer is always right" mentality is already deeply ingrained in me.


That said, business owners have the right and choice to decline any order. Conflict resolution and customer recovery are draining, and we can avoid all that by declining the order in the first place. Based on my personal experience, I came up with a 4As response guide:

"Assess" is the hardest step for me. Often, customers claim that they trust my recommendations when they order. However, as the delivery date draws near, some would make additional requests. At this point, I may have already invested some efforts to conceptualise or even ordered the materials (flowers in this case since I am a florist), and it does not make sense to decline the order. There is no foolproof formula to discern difficult customers, but I can share with you the ideal response.



I hope you have gained a new perspective from my post. To all entrepreneurs, do not be discouraged by the negative reviews. To all customers, please be kind and understanding. Let's make every transaction a pleasant one.


Love,

Janelle


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