In the software-as-a-service (SaaS) model, customers are not just a source of revenue; they are the lifeblood of the business. Unlike traditional product-based businesses, where the transaction ends with the sale, SaaS companies thrive on long-term relationships, recurring revenue, and customer satisfaction.
Customer adages, or sayings about customers and their behavior, are often distilled into simple rules. While helpful, they can sometimes be misunderstood or applied incorrectly.
Most Commonly Misunderstood Customer Adages:
01. Customer is Always Right
Misunderstanding:
This is often taken to mean customers should get whatever they want, no matter how unreasonable their requests.
Reality:
The phrase was originally intended to emphasize listening to customers and taking their concerns seriously. However, it doesn’t mean businesses should tolerate abusive behavior or make unwise business decisions to appease a customer.
02. Customers always know what they want!
Misunderstanding:
The customers have a clear and accurate understanding of their needs and preferences which further leads them to the best possible solution.
Reality:
Customers are experts in their pain points and desires but not always in the best way to address them. Businesses should combine customer feedback with their expertise to offer solutions customers may not have imagined.
03. Customer Comes First!
Misunderstanding:
Customers’ wants, needs, and demands should always take priority above all else, including the business’s values, employees, and sustainability.
Reality:
While customers are undeniably vital to a business, they are one part of a larger ecosystem that includes employees, stakeholders, and the business’s mission. Prioritizing customer needs doesn’t mean neglecting these other elements—it’s about finding a balance.
04. Know Your Customer
Misunderstanding:
Businesses might assume this means collecting excessive data about customers or making assumptions based on stereotypes.
Reality:
It means understanding customers' needs, preferences, and pain points. This knowledge should guide meaningful interactions, not invasive practices.
05. Build It and Customers Will Come
Misunderstanding:
This assumes that creating a great product or service automatically guarantees customer interest, underscoring the complete ecosystem of the product and its potential reachability to target audiences.
Reality:
While timely availability and the quality of products are essential, effective marketing, customer engagement, and understanding of market needs are equally critical.
06. A Happy Customer Is a Loyal Customer
Misunderstanding:
Companies might believe that a single positive experience guarantees loyalty, which is strong enough to expect product advocacy from Customers.
Reality:
While satisfaction is crucial, loyalty depends on consistent experiences, trust, and emotional connections over time. One happy interaction isn’t enough to ensure repeat business.
07. Treat Every Customer Eqully
Misunderstanding:
Providing identical treatment to all customers regardless of their needs or relationship with the business.
Reality:
Fairness doesn’t always mean equality. Personalized service based on the customer’s history, value, and preferences often yields better outcomes.
Conclusion
Customers are the cornerstone of any SaaS business. Their satisfaction, loyalty, and engagement drive recurring revenue, provide valuable feedback, and fuel growth through referrals and advocacy.
Therefore, it is essential to gain a deeper understanding of customers without being influenced by the preconceived notions associated with these adages.