Is the customer always right? Well, maybe not always! Are there people who return merchandise they have damaged? Do customers verbally abusive to you or your people. What about customers who only buy on clearance sales or special offers and try to take advantage of you and your businesses? Are there people who throw themselves in front of a bus or take falls on business properties in order to sue? The customer is not always right but the right customer should always be made to feel that they are.

On close investigation, most organizations discover they have three groups of customers. The smallest group is responsible for between 150 and 300% of profits. The largest group contributes nothing to profits and the next largest has a significant impact on profits, a negative impact.

Before sending the last two groups (unprofitable customers) to the competition ask: “Can this customer be made profitable by minimizing the cost of serving them?” If the answer is no, send them to the competition. If they’re dishonest with warranties, returns or satisfaction guarantees, they’re trying to rob you, have them arrested!

Success in business is about meeting the legitimate needs of customers in a superior and profitable way. The sole purpose of a business is to make a profit and that can only be done by satisfying the customer. If you fail they will take their business elsewhere.

The overall attitude of excellent customer service must be one that is constantly focused on making a profit while solving the customer’s problem with the least amount of customer inconvenience.

Nordstrom has “a no questions asked,” return policy and doesn’t require a customer receipt. Nordstrom believes it’s better to reward the 95% of people who are honest with a “no hassle” return policy than to punish everyone because of 5%, who may take advantage.

Nordstrom’s endorses this customer service policy and has done all it can to train and create a customer service culture. They want satisfied customers and the only thing they ask an employee to do in satisfying a customer is to use good judgment. You and your people must know when an unprofitable customer is trying to abuse you and defend yourself by saying no.

“You have to put the customers second to ensure the best customer service,” according to Colleen Barrett, Southwest Airlines president and COO. “With the Southwest Model for Leadership,” she said, “employees are the company’s No. 1 customer.” If employees feel good about what they’re doing on a daily basis, satisfied employees will deliver the same sense of friendliness and care to Southwest passengers.

Herb Kelleher, founder of Southwest Airlines said: “We hire based on attitude because, with the right attitude, we can train for skill.” PetSmart has moved interviews with potential employees from the back office to the sales floor. A manager starts a conversation with a customer and then steps back to watch how the job candidate interacts with the shopper. “It gives a good read on the person,” says Barbara Fitzgerald, senior vice president of store operations.

If you expect your customer to be honest, shouldn’t your customer expect the same from you? According to Fast Company.com: “Imagine walking into a Circuit City prepared to buy an expensive digital camera and being told you could get it cheaper at Best Buy. Sound crazy? If a customer shopping for car insurance calls Progressive, that’s pretty much what happens. For years the company has handed out rivals’ rates to potential customers. It’s a bold piece of Progressive’s plan to foster long-term customer loyalty.”

Success in business is about making a profit by meeting customer needs in a superior way. How can my business and I do that you may ask? “We feel really close to our customers,” says Audrey Dumper, Vice President of Marketing for Trader Joe’s East. “When we want to know what’s on their minds, we don’t need to put them in a sterile room with a swinging bulb.” Trader Joe’s does not rely on a carefully calibrated contact center or extensive customer research; rather employees are trained to have a simple human conversation and listen to profitable customers.

In delivering superior customer service you and your organization must realize that not everyone should be a customer, only those who are profitable. It’s the job of the successful organization to create a new method of serving those who are currently unprofitable or fire them. It’s equally important to recognize that if a customer is abusive, dishonest with warranties, returns or satisfaction guarantees, perhaps you should call the cops!

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