The phrase “the customer is always right” is one of the most recognizable, yet intensely debated, maxims in business history. This statement, which demands deference to the buyer, has been a guiding principle for nearly a century, shaping the nature of commerce and service. While its intent was to revolutionize customer experience, the philosophy has become controversial, leading modern businesses to question its literal application. Tracing the phrase to its origins reveals a shift from the transactional nature of early retail to a new focus on consumer trust and satisfaction, explaining why the idea became famous and why its literal interpretation is now widely considered outdated.
Competing Historical Claims for the Origin
The principle of prioritizing the customer’s perspective emerged in the late 19th and early 20th centuries, when the legal standard for commerce was caveat emptor, or “let the buyer beware.” This environment of distrust fueled the efforts of pioneering merchants to establish a reputation for fairness. American department store magnate Marshall Field is sometimes credited with the idea; the earliest known printed mention of the exact phrase appeared in a 1905 Boston Globe article about his Chicago business practices. Field promoted the idea that a successful enterprise must treat the customer as if they were always correct.
A similar sentiment arose in the European hospitality sector around the same period. Hotelier César Ritz adopted a French variant for his luxury establishments: “le client n’a jamais tort,” meaning “the customer is never wrong.” Ritz believed that a guest’s complaint should be immediately resolved without question. These parallel developments demonstrate that the concept was a revolutionary business idea, signaling a significant shift away from the seller’s dominance.
The Attribution to Harry Gordon Selfridge
The person most widely credited with popularizing the English phrase is Harry Gordon Selfridge. An American who had previously worked for Marshall Field, Selfridge opened his department store, Selfridges, in London in 1909. He adopted the slogan as a defining principle for his new venture, which departed dramatically from the traditional English retail model. Selfridge’s application of the maxim was a marketing masterstroke, designed to attract shoppers by promising a level of service and trust previously unknown in British stores.
Selfridge’s philosophy focused on creating a welcoming environment where shoppers felt empowered and valued, rather than determining who was factually right. He encouraged employees to resolve all complaints and make exceptions, understanding that long-term customer loyalty was worth the occasional short-term loss. This approach elevated shopping from a simple transaction to an enjoyable leisure activity, firmly embedding the phrase “the customer is always right” into modern retail language. His commercial success ensured that his name became inextricably linked with the maxim.
How the Phrase Became a Global Business Maxim
The success of retailers like Selfridge and Field demonstrated a direct link between customer deference and commercial prosperity. The maxim became a cornerstone of customer service training across numerous industries, including retail, hospitality, and service sectors, throughout the 20th century. Companies adopted it as a simple directive to frontline employees: prioritize customer satisfaction above all else.
This philosophy flourished in the post-World War II economic boom as market competition intensified. Businesses understood that unconditional customer acceptance could build the trust and loyalty necessary for repeat business. The idea spread internationally, with variations appearing in other languages, such as the German “der Kunde ist König” (“the customer is king”) and the Japanese “okyakusama wa kamisama desu” (“the customer is a god”). This widespread adoption cemented its status as the default philosophy for managing customer interactions for decades.
Why Modern Management Rejects the Philosophy
Contemporary business management increasingly rejects the literal interpretation of the phrase due to its negative practical consequences. Adhering blindly to the maxim often leads to the demoralization of employees, who feel unsupported when forced to side with an abusive or unreasonably demanding customer. When staff are consistently undermined in disputes, their trust in management erodes, leading to lower engagement and poorer service quality.
The philosophy also incentivizes dishonest behavior, as some customers exploit the policy to gain refunds or services beyond what is legitimately owed. Catering to these extreme demands consumes disproportionate resources, harming the business’s financial sustainability and its ability to serve reasonable customers effectively. Modern companies recognize that protecting employees from abuse and setting clear boundaries with unreasonable clients is necessary for a healthy, long-term business strategy.
Customer-Centric Alternatives
Instead of the outdated maxim, modern companies emphasize empathy and problem-solving without sacrificing employee well-being or business integrity. One popular alternative is the concept that “The customer is always right about their experience.” This perspective acknowledges the validity of a customer’s feelings and perception of the issue, even if the facts of the situation are different. The focus shifts from proving the customer wrong to understanding the underlying friction point that caused the complaint.
This approach is rooted in building mutually beneficial relationships and finding collaborative solutions, rather than unconditional surrender. Modern customer success models focus on “Customer Alignment,” where the business works to meet the customer’s needs within the realistic parameters of company policies. Empowering employees to listen actively and offer reasonable alternatives, while knowing they have management support, results in better outcomes and a more positive service culture.