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Only on Are Customers Always Right?

Posted: January 11, 2012

In the spa and skin care business, the squeaky wheel almost always winds up getting the grease. Clients tend to be rewarded for complaining, but that strategy leaves money on the table, according to marketing consultant Betsy Kruger.

“No one likes hearing a complaint, so when a customer complains, they quickly and resoundingly rectify the complaint,” says Kruger, author of Top Market Strategy: Applying the 80/20 Rule. “The problem with this strategy is that disgruntled clients bring in less profit than loyal customers. Instead, your business should focus on gratifying your most profitable customers.”

Contrary to popular opinion, the customer is not always right, Kruger says.

“It’s wrong to reward complainers,” she says. “You should reward loyal customers since they reward your business with higher profit. You should value their business since loyal customers value your business.”

Kruger says the 80/20 rule governs all results, including profits from customers of your spa or skin care business.