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Learning From The Ritz-Carlton Customer Service Philosophy

We can learn much from the Ritz-Carlton Gold Standard and their exceptional customer service philosophy and orientation. “Putting on the Ritz” has always meant top-quality, the best of the best. Where did they acquire this reputation? From their customers – and it is well deserved. These numbers from a profit-perspective should look a lot more like 50-50 if you want to have the best reputation and the largest increase in customers and profits year-over-year. In a recent independent survey, 99 percent of guests said they were satisfied with their Ritz-Carlton hotel experience and over 80 percent stated they extremely satisfied.

The Ritz-Carlton focuses on taking care of their customers and employees and this creates an amazing standard of customer service. The key to impressive customer service is to create loyal customers. Loyal customers return again and again to spend there money and are less price sensitive. Satisfied customers might return, but are equally likely to go anywhere else and seek out the lowest price. Therefore, satisfaction is virtually meaningless and only customer loyalty truly counts.

The Ritz Carlton provides managers and employees with 250 to 300 hours of training in their first year Ritz-Carlton lets customers know that they are valued and encourages them to make the client and customer service their top priority. Trainers and managers focus on making sure the staff is well versed in the Ritz-Carlton Gold Standards. For the Ritz-Carlton these Gold Standards are not a procedure, they are philosophy and a way of life.

The Ritz-Carlton philosophy is that any employee who receives a complaint from a guest owns that complaint. First-line employees such as desk clerks, bellboys and housekeepers are empowered to spend up to $2000 to handle any customer complaints and managers can spend up to $5,000 without additional authorization.

The Ritz-Carlton has a manual for quality improvement and problem-solving procedures. The manual contains approximately 1000 potential problems that a client could have during their stay and the appropriate procedure(s) for dealing with each of these challenges so that the client is exceptionally pleased with the outcome.

With businesses typically losing 20% of their customers each year, we should clearly be spending more time, money and energy on customer service and retention than we are on marketing to new customers. The typical business spends 90% or more of their funding and focus on marketing to new customers and 10% or less on retaining old customers.
Mt Roskill Real Estate Agents