By Dean Waye & Alan Gonsenhauser
It’s time to kill this phrase.
It’s hurting your business. It’s hurting your people. And it’s definitely hurting your profits.
“The customer is always right” made sense when customers had no megaphone. Now they have Twitter, TikTok, and review sites. One angry person can hijack your entire strategy.
That’s not customer service. That’s a hostage negotiation.
What Appeasement Actually Costs You
When you treat every complaint like gospel, you’re teaching your team something dangerous: their dignity doesn’t matter.
If a customer abuses your employee and you reward the customer anyway, what message does that send? That loyalty is one-sided. That you won’t protect your people.
This kills innovation. People stop trying when they don’t feel safe.
The retail and hospitality industries went first, ejecting or firing customers who verbally abused employees. The result? Higher morale, lower turnover, more creative energy.
They fired a bad customer and got a better company.
The Bad Customer Tax
Every business pays it. Most don’t realize it.
Bad customers cost you:
- Time wasted on unprofitable requests
- Employee burnout and turnover
- Opportunity cost of not serving good customers
- Cultural damage that spreads
Firing bad customers isn’t a loss. It’s an immediate ROI win.
How to Escape the Trap
Stop trying to serve everyone. Start serving the right people.
Here’s how:
Use AI to Find Your Best Customers
Let AI analyze your customer data. Find the patterns of your most profitable, collaborative clients. Then find more people like them.
Stop guessing who’s worth your time. Let the data show you.
Make Your Boundaries Your Brand
A company that knows who it doesn’t serve is magnetic.
Clear boundaries aren’t mean. They’re positioning. They say: we’re not desperate, we protect our people, we choose our partners.
In a world of bland people-pleasing, that’s remarkable.
Lead, Don’t Follow
When a customer makes a request, don’t just say yes. Ask why. Understand the real need. Then offer something better.
That’s how you earn trust without losing your backbone.
The New Rule
Great companies aren’t built by saying yes to everyone.
They’re built by saying no—strategically, confidently, and often.
The customer isn’t always right. But the right customer usually is.
Focus on them.