The Profit / Happiness Paradox

Most companies exist to make a profit while (hopefully) making their customers happy. No doubt, if you’re employed in an organization led by someone other than yourself, this is likely the mantra that drives your company’s actions. It is business, after all.

But, what if we were to change that sentence around a bit? What if we made it say “This company exists to make its customers happy. If they’re happy, then the company will make a profit” instead?

The difference is subtle, but now more important than ever. What if more companies put the happiness of their customers before profits? What if they prioritized customer happiness and satisfaction above all else? I think, paradoxically, that prioritizing happiness over profits would actually have a dramatic and positive impact on a company’s profits in the long run. Sure, it’s a risky thought; but, good businesses, at heart, are built on risk.

In the words of Seth Godin, “Safe is risky.” You can do everything perfectly but, if it doesn’t make your customers happy, it isn’t going to work very well. If you’re willing to take the risk to make your customers happiness a priority higher than profits, then perhaps the wonderful profit genies in the sky will be good to you after all.