Is "the customer is always right" still a valid rule in modern business?

Is "the customer is always right" still a valid rule in modern business?

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The phrase “the customer is always right” was coined in an era where businesses sought to protect customer satisfaction at all costs. While customer centricity is vital, this mantra is overly simplistic and often counterproductive today.

Problems with this myth:

  • Abusive behavior is enabled: Some customers exploit this phrase to mistreat employees or demand unreasonable concessions.

  • Employees feel unsupported: Constantly siding with customers demoralizes staff, reducing morale and productivity.

  • Not all customers fit the brand: Some may not align with the company’s values, product offering, or culture—and that’s okay.

Modern perspective:

  • Focus on mutual respect between customer and business.

  • Prioritize fit over volume—not all customers need to be served.

  • Empower employees to make judgment calls based on context.

Customer-first, not customer-only:

  • Businesses should strive for excellent service and active listening, but not at the expense of ethics, boundaries, or team wellbeing.

  • Align customer engagement with long-term brand reputation and internal culture.