The maxim “the customer is always right” is a deeply ingrained philosophy in global commerce. It serves as a foundation for how companies approach service, returns, and loyalty. Understanding the origin of this powerful phrase requires investigating a revolutionary era of retail that first placed the consumer at the center of the commercial world. The evolution of this concept from a groundbreaking business strategy to a contested modern philosophy reveals a long journey.
The Primary Contenders for the Phrase’s Origin
The exact individual who first uttered the phrase “The customer is always right” remains difficult to pinpoint, but its popularization is credited to pioneering retail figures in the early 20th century. The earliest documented use in print appeared in a September 1905 article in The Boston Globe, which attributed the theory to Chicago department store magnate Marshall Field. Field, who owned Marshall Field and Company, was known for customer-friendly policies, including the slogan, “Give the lady what she wants.” The individual most commonly associated with the maxim is H. Gordon Selfridge, who worked for Field before opening his own eponymous department store in London in 1909. Selfridge adopted and heavily promoted the phrase as a central tenet of his new enterprise, while Swiss hotelier César Ritz championed a similar sentiment in Europe using the French phrase, “Le client n’a jamais tort” (“the customer is never wrong”).
The Business Climate That Popularized the Maxim
The phrase gained traction during a transformative period in the late 19th and early 20th centuries, marking a decisive shift away from the legal principle of caveat emptor, or “let the buyer beware.” Before this time, merchants held the power, and shoppers had minimal recourse for faulty goods or poor service. The rise of massive department stores in urban centers like Chicago, London, and Paris intensified competition. These large retailers needed to attract and retain a burgeoning middle-class clientele who spent on non-essential goods. By offering unprecedented services like tearooms and generous return policies, the “always right” philosophy became a risk-management strategy to build loyalty and trust.
Interpreting the Original Meaning
The founders of the maxim did not intend for “right” to mean factually or legally correct in every dispute. Instead, the philosophy emphasized that the customer’s perspective and satisfaction must always be validated and prioritized by the business. The phrase functioned as an internal operating instruction, empowering employees to resolve customer complaints swiftly and without argument. The true intent was to remove the employee’s ego from the transaction, instructing staff to treat customers as if they were correct to foster long-term loyalty. This approach signaled a willingness to absorb the cost of an occasional fraudulent claim as a necessary business expense, placing the responsibility for a smooth experience squarely on the retailer.
Why the Customer Is Not Always Right
Strict, literal adherence to the maxim has proven unsustainable and detrimental in the modern business environment. The most significant negative consequence is the erosion of employee morale and a resulting increase in staff turnover. When employees are consistently forced to tolerate abusive or dishonest behavior from customers, they feel unsupported and undervalued by management. The policy also incentivizes unreasonable demands and attracts challenging customers who exploit lenient policies for personal gain. Accommodating these few individuals drains valuable company resources, which ultimately diminishes the quality of service for the majority of respectful customers.
Modern Customer Service Strategies
Contemporary business strategy has moved past the literal interpretation of the old maxim, focusing instead on “customer centricity” and “customer loyalty.” This approach involves empowering frontline employees to use their judgment to resolve issues, while simultaneously providing them with clear support and boundaries. Employees are given the authority to offer reasonable solutions, such as refunds or credits, without needing a manager’s override, which leads to quicker resolution. Companies are also implementing formal zero-tolerance policies that explicitly protect staff from abusive customer behavior. By prioritizing employee well-being and setting fair expectations, businesses cultivate a positive internal culture that translates into better service for the majority of respectful customers.