What is meant by, "The customer is always right," is, "Stop treating customers as if they are wrong, even when they are." There are simply more effective ways to deal with customers. After decades of dealing with morons in various "customer service" settings, I now find myself on the other side of the counter, where I strive not to be "the moron in Customer Service." Even though I was probably one of the toughest customers a CSR had to deal with, I am one of the best CSRs around. Maybe I should have said, "because," instead of, "even though." Every time I find myself acting as a CSR, I place myself in the customer's situation and recall what it was like the last time I had a similar complaint. Note, I said, "recall," not, "empathize." Recall is real; empathy is feigned. That helps me understand what will actually correct the situation in the customer's eyes.
Customer service, like real estate, has three rules. They are:
1. Listen.
2. Listen.
3. Listen.
OK, some more specific rules (but you'll notice that they are all based on those three rules above).
I tell my associates to follow the 80/20 rule. Spend 80% of the time listening to the customer. Only spend 20% of the time with your gums flapping. You can't solve problems until you know what they are. The guy in front of you knows; you don't.
Acknowledge what he is saying. Repeat it if necessary so that he knows that you heard and understand what he is saying. "So the item rung up as $25, but the sign says $20?"
DO NOT apologize!! "I'm sorry" is almost always followed by "but..." That stinks, and nobody likes a stinky but. Instead, say something proactive like, "Let's see what we can do about that."
The customer may not always be right about everything they are saying, but there is some grain of error on your organization's (or possibly even your own) part. Listen for it. You can help by acknowledging it and possibly correcting it.
Focus on fixing things. No explanations. No mentions of internal policies or procedures. No jargon. The customer is looking for a fix. You may not be able or allowed to give him the fix he wants, but there is some fix you can do.
Never say, "no," or, "can't." If you have to refuse, propose an alternative instead. "I can..." "How about if I..." "That's something that __________ might be able to help you with. Let me call her over."
Don't externalize; internalize. You can't control anything external to you. You can only control your response. If you focus on the external things you can do nothing about, including customer behaving badly, you will accomplish nothing. If you focus on what you are doing and can do, you will find something you can do to improve the situation. (This one is actually a fundamental rule of being successful at anything: Stop blaming that which is out of your control, and look to what is within your power to increase the possibility of a positive outcome. Welfare queens violate this rule as a lifestyle. Profitable businesses live by it.)
This one may sound like the opposite of the above, but it isn't: Don't take it personal. The customer is often angry. He may try to make you feel sick inside too. So he might say some ugly things to you. As long as he does nothing illegal or violent, take it. Be the bigger person. If he is ranting and you continue to act rationally and toward solutions, he will start to feel self-conscious about his bad behavior, and it will subside. Asking him to calm down or not to use that language or telling him that he is upsetting the other customers will only aggravate him and increase the behavior. This rule is similar to the one above in that you cannot control his behavior, only yours. However, if you control your behavior, you will influence his almost all of the time.
This stuff works, and it is what comes to mind when someone oversimplifies by saying, "The customer is always right." If one must simplify all the rules of good customer service into one, this one would be best: "Listen."