Recently I saw a recent article by Malu Dy Buncio, the link to the article is at the end of this posting. In her opening paragraph she said: "...Obviously the customer is ‘always right’ because the decision to hand over their hard earned money for your product or service lies with the customer." But she went on to state that at times a client may not be a good fit for the supplier.
This is definitely my experience also, and at times, I have even given contact information or alternative suppliers to the client.
It is always hard, especially for a sales person or even a company, to let an existing client go to another supplier. But there are times it may be best for both parties, and at times there may be a good strategy in doing this.
This does not mean though that you should not try to meet their needs and/or their expectations, initially. It is important though that we do not allow the client to think that they are right, if they are not, but this needs to be communicated with finesse and honestly, and sincerity.
A case in point: We were selling industrial flooring systems to the global pharmaceutical industry, which were for the most part epoxy based. The advantages are that they are essentially seamless, easy to clean, chemically resistant, and many times stronger than concrete and resistant to impacts and heavy forklift traffic, to mention a few of the advantages. However, they are not always that tolerant of flexing, "suspended" flooring. At that time they could crack and peel off.
After a full review of the physical area and conditions, it was clear that our product would not perform adequately and most likely would fail in a relatively short period of time, leading to dissatisfaction by the client. This would not be beneficial for our company's image and reputation.
Therefore, we recommended that they go to suppliers of polyurethane systems which product we did not have at the time. The customer was shocked that we would not sell them a system that they felt would meet their needs. We explained why ours was not the correct system in this specific case, and whom they might contact. However, we also explained in detail all the other instances where our system was superior.
In the end, the customer was happy that we were honest with them, and we got their business in all of their other plants that did not have "suspended slab" construction. They were pleased, and we were rewarded with regular ongoing business. In fact, they would call us when they had a need, as we were not always aware of new or "rehab" requirements that they had ongoing. What could be a better Win-Win?
Another instance, where there may be a strategic reason not to supply a client, is one where certain customers either are highly demanding and consume vast amounts of time and effort, and yet the requirement is very small, or, they are poor payers. Many times this kind of client fills both descriptions. If you "give" or allow your competition to take those clients, over the long run, your competition may have to go out of business as their costs of doing business may be much higher than yours.
Another situation, is, there are companies that intentionally do not want "zero" defects. Why, you might ask? Because having a positive customer experience is more memorable and makes a bigger impact and is communicated within the industry, than not having any experience at all. A specific manufacturer purposefully had a 1-3% defect rate. However, they increased their customer service department and gave them more leeway to handle complaints. The end result, was that the customers who complained about the "necessary" product, received excellent customer service and satisfaction, and the industry being supplied, heard these rave reviews, and many changed their suppliers to this great customer satisfaction manufacturer!
Thank you to Malu Dy Buncio and her article link below:
http://mansmith.net/index.php?option=com_content&view=article&id=298%3Ais-the-customer-always-right&catid=40%3Aservice-and-execution&Itemid=44
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