We can learn a lot from the Ritz-Carlton Gold Standard and its exceptional customer service philosophy and orientation. “Wearing the Ritz” has always meant the highest quality, the best of the best. Where did they get this reputation? From your clients, and you deserve it.

The Ritz-Carlton focuses on taking care of its customers and employees and this creates an amazing standard of customer service. In a recent independent survey, 99 percent of guests said they were satisfied with their experience at the Ritz-Carlton hotel and more than 80 percent said they were extremely satisfied. The key to impressive customer service is creating loyal customers. Loyal customers keep coming back to spend their money and are less price sensitive. Satisfied customers may return, but they are just as likely to go elsewhere and find the lowest price. Therefore, satisfaction is practically meaningless and only customer loyalty really counts.

The Ritz-Carlton approach to customer and employee relations can teach us a lot about exceptional customer service. How could you apply them within your company?

o Ritz-Carlton lets customers know they are valued and encourages them to make customer and customer service their top priority. Trainers and managers focus on making sure staff are well versed in the Ritz-Carlton Gold Standards. For the Ritz-Carlton, these Gold Standards are not a procedure, they are a philosophy and a way of life.

o The Ritz Carlton offers managers and employees 250-300 hours of training in its first year

o The Ritz-Carlton philosophy is that any employee who receives a complaint from a guest owns that complaint. Front-line employees, such as receptionists, bellboys, and housekeepers, have the power to spend up to $ 2,000 to handle customer complaints, and managers can spend up to $ 5,000 without additional authorization.

o The Ritz-Carlton has a quality improvement manual and troubleshooting procedures. The manual contains approximately 1000 potential problems that a client could have during their stay and the appropriate procedures to deal with each of these challenges, so that the client is exceptionally satisfied with the result.

Given that companies typically lose 20% of their customers each year, it is clear that we should be spending more time, money and energy on customer service and retention than on marketing new customers. The typical company spends 90% or more of its financing and focuses on marketing to new customers and 10% or less on retaining old customers. These numbers from an earnings perspective should look much more like 50-50 if you want to have the best reputation and the biggest increase in customers and earnings year-over-year.

Recommendations:

– Make sure your managers and leaders are teaching, practicing, promoting and living a customer service oriented philosophy / lifestyle.

– Clearly define your customer service standards and train your employees to meet the highest level.

– Make exceptional customer service an important element in employee evaluations.

– Make sure your staff have the ability to solve small customer complaints / challenges on their own, and train them to do it right.

– Identify specific problem areas you have in your company, brainstorm solutions, and then provide additional training and support.

– Edward Deming once said: “What is not measured, is not done.” How do you measure your results?

– Customer questionnaires and surveys are key. Be sure to ask open-ended questions that focus on the client. Loyalty – Not satisfaction.

Ritz-Carlton senior management knows that when employees are well trained, they do a great job. And when employees feel like they’re doing a great job, they feel great about their job. This results in lower staff turnover, creates a positive environment and is beneficial to employees, management and customers, and keeps profits on the rise. The Ritz-Carlton is a wonderful example of what a well-run organization focused on customer service can do when it creates a customer service mindset and win-win philosophy at all levels of the organization.

See my Resource Box below for TONS more Resources and Trainings!

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