They say “the customer is always right”, right? Well in this article we will examine five explanations that help to support this statement.Before we explore why the customer is always right, let’s acknowledge that some of you reading this may have examples of when customers have been wrong. Yes, it is true that there are some customers that are rude and obnoxious and you can’t seem to please them no matter how hard you try. But let’s look at the following list of reasons why despite some customer’s natural inclination to be nasty, they are still always right.Reason 1: What is a Customer? If you Google this question you will get a variety of definitions. The the most common: “A person that purchases goods or services.” This definition is fitting; however, I prefer a definition written by author Leanne Hoagland-Smith. She defines customers as “Individuals engaged in transactions for mutual benefit or gain.” The latter definition indicates that there has to be action on the part of the seller and buyer and the relationship has to be beneficial to both parties. This means that every person is not necessarily a customer.As a business owner you have the right to determine when a customer is no longer a customer. Be mindful though, that with this power comes great responsibility. You cannot afford to make the decision about who is a customer on face value alone. Don’t assume that the Wiz Khalifa look alike that comes into your store is there to rob or be rude to you. My husband and I are often followed around stores when travelling. It could be because we look too young to have disposable income, or it could be something else. The point is that when this happens to us we leave and the store owner loses a sale and a customer.Barring you making an incorrect assumption and in the face of a true offence, you as the business owner CAN sever your business relationship with the customer. When this occurs, they no longer have the right to be right. The lesson is, that yes, the customer is always right, but not all customers need to stay customers.Reason 2: “It’s cheaper to keep her” … and/or him in this instance. Statistics show that:l The chance of making a new sale to a new prospect are one in 14l Chances of making a sale to someone who has bought from you in the past but not necessarily a current customer are one in fourl Chances of making a sale to a current customer are one in twoAccording to the above referenced statistics, it makes sense to focus money and energy on existing customers. Don’t get so caught up in attracting new business that you neglect your existing customer base. Keeping customers includes keeping them happy.Reason 3: Once you have made a sale, understand that your work has just begun. In order to create a repeat customer you have to nurture your relationship with the person that has just made a purchase. You can do this by:l Anticipating their wants/needs.l Create added value services whenever possible.l Maintaining contact with them, and not just when you want them to buy something.l Delivering unparalleled service every time.Reason 4: Work with your customers to create expectations that can be achieved and if possible surpassed. Don’t promise the moon and stars if you can only deliver the moon. Be clear when it comes to setting service targets. When you exceed a customer’s expectations you increase the chance that they will be loyal to you. Remember you may be meeting your customer’s expectations, but there are always competitors who are looking to outdo you.Reason 5: Make sure your customers remain assets and not detriments. You may think that by giving your customer’s deep discounts that you are adding value, but you are really creating a bad situation that could be difficult for you to get out of. Do not create a scenario where your customer always expects a discount. Look for other ways to provide value while at the same time maintaining profitability.At the end of the day the customer IS always right and it is your job as the business owner to protect this truth by doing your part. Remember if there is no customer, there is no business.Learn more about “Maintaining New and Existing Customers” at Bermuda Economic Development Corporation’s upcoming seminar on Wednesday January 25, 2012 at Hamilton Princess. Log on to www.bedc.bm for more information and to register.Jamillah Lodge is a business development officer for Bermuda Economic Development Corporation. She specialises in providing aspiring and existing entrepreneurs with business development advice and loan guarantee assistance. In addition, she manages the marketing and communications plan for the Corporation and oversees the development of a mentorship and youth entrepreneurship programme. She has a degree in Business Administration with a concentration in Marketing. The opinions expressed in this article are those of the writer and should serve a general guide and should not be considered as replacement advice from a lawyer, accountant or other professional service provider. Readers should consult with the appropriate professionals as necessary.If you have questions about starting a business in Bermuda, just ask BEDC: Email us at info[AT]bsbdc.bm or call 292-5570.