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It should not be interpreted literally but in the view of the customer, as you should never make them feel like their choice is wrong.
Make them feel welcome at all times, basically.
I view this as a figure of expression, thus though a customer may not be right always, it is our duty to assist them in whatever emotional state they may be in.Therefore this is an absolute truth.
For me that's true. Customer is always right for those who are smart. But for the others using only this saying they are not smart. In other words "Customer is always right but some are not smart."
The customer is not always right but as a great customer Service professional, never make the customer feel wrong. Always give him the impression he is right and let your body language especially for facial expression convince him