An up-to-date interview on Ritz Carlton supports our earlier blog posts - How Ritz Carlton Stay at the Top (Forbes.com)
Ritz-Carlton has become a leading brand in luxury lodging by rigorously adhering to its own standards.
It is the only service company in America that has won the Malcolm Baldridge National Quality Award twice, and Training Magazine has called it the best company in the nation for employee training.
Its unique culture starts with a motto: "We are ladies and gentlemen serving ladies and gentlemen."
One of its remarkable policies is to permit every employee to spend up to $2,000 making any single guest satisfied.
Ritz-Carlton codifies its expectations regarding service in
- "The 12 Service Values"
- "The Credo"
- "The Three Steps of Service"
- "The 6th Diamond"
- and other proprietary statements that are taught to all 38,000 employees.
RELEVANT LINKS
The Ritz Carlton Experience - blog posted in 2007
Customer Is King - the book
33 comments:
Indeed, it is a nice benchmark for customer service, and reiterates the fact that one gets what one pays for.
It costs an average of $1200 per night room only, and another $80 per person for breakfast, $40 for in-room tea/coffee, all of which require tips be given.
I'm somewhat doubtful that each and every member of Ritz-Carlton staff is empowered to spend up to $2000 on individual guest satisfaction though; as in every business, checks and balances have to be firmly in place to prevent abuse, and to ensure profit quotas are met.
However, the ethos is superb. If only more businesses would focus on real customer relationships and investing in the future/people, instead of being obsessed with things that add absolutely no value to their brand.
Ritz Carlton is certainly a great brand and story.
The credo and repetition of it is fascinating. I had the pleasure of working with R-Carlton and Sandals in Jamaica some years ago. Both businesses adopt a similar model: fixed number of rules, daily team meetings to cover one canon each day.
Stayed at two and visited several on our stay there.
The results - what we saw - were impressive.
RC - As you appreciate the Ritz-Carlton credo, I highly recommend "Peak: How Great Companies Get Their Mojo from Maslow" by understated boutique hotelier "Chip Conley."
He applies adapted Maslow theories to his workplace, and it works a treat. His hotels are expensive, amazing, and always busy.
He's hitherto survived the dotcom disaster, two economic downturns, and stayed full without lowering his prices. It's a great read and completely related to your posting.
Will look up the book on Amazon.
Anyone interested in the hospitality industry and customer service needs to look at the R-Carlton model.
They seem to take customer service seriously as opposed to paying lipservice to it.
Have talked to more than several businesses about Cust Service but have rarely been convinced that they actually put the customer at the front of their minds (ahead of short term profits).
Robert
It's amazing that customers will pay high end prices for what should be business basics for all service sector organisations - emotional connection, feeling a sense of being in a loyal customer relationship, service from people that listen to your needs and will use their imagination to make your experience memorable (aka The 12 Service Values). This level of service should be a 'minimum benchmark' for ALL service sector businesses. Strangely most businesses opt to slash their prices in tough economic times rather than rally everyone together to up the ante on the service, i.e.'putting the customer first'. Speaking of 'tough economic climates' (being an optimist I'm reluctant to utter the 'r' word') for those of us on a tighter budget, moi, I'd recommend eeking out the pennies to experience a glass of bubbles at Tower 42, London for some 5 star treatment - they've just won 2 awards at last week's National Customer Service Awards - Front Line Customer Service Team and Customer Service Management Team of the Year.
Runnng a small chain of boutique hotels myself, it is incredibly difficult to maintain behind-the-scenes military precision and efficiency combined with a relaxed atmosphere front-of-house.
One is only ever as strong as the weakest link in the chain. One grumpy chambermaid can destroy literally millions of pounds of investment in a project.
I know to my own cost.
Peter
National Customer Service Awards seems like a weird idea, and sponsored by two of my most despised and hated of companies: RBS and Aviva.
My experience is that neither would know what a customer is if he or she punched them in the face. All rules, call centres and option 1 or option 2.
Ironic is an understatement.
Two themes are starting to appear in this blog:
1 what is exceptional should be the norm, the benchmark
2 we are amazed when we get the benchmark we expect
Why are we disappointed so much of the time? Why don't business 'get it'. This is NOT about awards and national guidelines. It is about common sense.
Bill
The name of the game is passion, determiniation, enthusiasm, excitement. Not guidelines. I'll quote the old man "'fighting for peace' is like a 'fun run' or f-ing for virginity'".
You can not legislate for passion. The passion must come first.
Otherwise it all gets upside down.
You can hear them in the board rooms of RBS. "I know what we could try. We could try some kind of thing that says we like customers. That should help my bonus. Yes, let's vote for another initiative. Haven't had one since the scorecard."
Madge
or was it IIP or was it lean manufacturing or time-based management or quality or TQM or Kaizen or business process re-engineering or performance management or six sigma or one minute management or team based management or excellence or matrix management or ...
RC
RC. I agree with the other fads you have listed, especially IIP and the cruel Welch-esque Six Sigma. However, Lean is one of the most useful and adaptable tools for any business that I've used.
However, like the DC tool-kit, it is only useful if one knows the concept and Lean tools intimately. This takes far more time than most "consultants" are willing to spend, (I've spent 15 years learning and applying, and still only scratch the surface) and it also assumes one knows something about what it takes to keep the lights on, and the family fed; most consultants have never had to worry beyond annual holiday destinations. It helps to have fallen in battle, in fact, it's imperative.
Also, and as Lean is so steeped in culture, one has to be culturally savvy in order to apply the tools; original culture (Japan, and the Japanese using nature as a foundational model for achievable, lasting results) and the culture one is applying Lean within.
I have, and still do, successfully combine it with, amongst others, your Kick-Start and Customer is King tools. It's provided me with consistent results in people, quality, sales and bottom line.
Frea said....
Completely agree that passion, energy and actually giving a 'hoot' about your customers are what makes the difference. But I've got to say after 3 months of being on the road speaking to 100s of businesses I can think of only a handful of people that I've met that genuinely have this energy that's capable of inspiring a whole organisation to raise its service standards.
Seriously, these passionate individuals are a rare breed. I've spoken to a lot of FTSE 100 companies in recent weeks that are having to go back to basics - e.g. 'Who are our existing customers?' for starters?
I've met some customer service champions that are passionate but are fighting an internal battle to be heard above the loud number crunching.
Therefore I'm supportive of quality standards that help businesses adopt best practice....in the absence of those rare leaders that can genuinely inspire great service.
Frea (from Customer First UK - so not biased at all!)
ps You'd think 'normal' customer service would be common sense, but 75% of organisations don't achieve 'Putting the Customer First' because....believe it or not..they don't follow up customers post service. It seems that most have forgotton to politely ask 'how was it for you, dear?!'
Frea
How totally and utterly depressing (not you but the state of affairs that you describe).
For once, words fail me.
Madge
Madge,
Hey, even when Pandora opened that box there was still hope!
Frea
"You cannot be serious" - "75% of organisations don't achieve 'Putting the Customer First' because they don't follow up customers post service."
What fools are you working with? I find it hard to believe that 75% of businesses do not follow up post service unless you mean banks, accountants, estate agents, doctors.
As a structural engineer, it is the follow up that enables us to stay close to the client.
WM
Stuff Pandora - it is time that customers/clients voted with their feet and their voices.
Madge
WM
Just reaching out to the UK Service Sector which accounts for 3/4s of our GDP. We've worked with about 30 markets within this sector - and yes those you refer to have certainly been knocking on our door. But we've barely scratched the surface.
I've spoken to a couple of FTSE 100s this week who've both told me that they're having to reskill their workforce to rebuild relationships with their customers...and develop selling skills - because for the past 10 years they've just been order takers. 'Takers, not givers.'
Madge, 'stuff them?' Scarey thing is that it could be the 'customer who is stuffed'. Customer walks out...but where to? Who can the customer trust and believe in to 'put them first?!' (Hint, hint! :-))
Um don't normally get into debate but had a quick look at the website and straight away it says NATIONAL STANDARD which equates to British Rail, Royal Mail and all other so called national institutions. What are you trying to say?
Your "Eight Top Tips for Pleasing your Customers all Year Round". Pleasing!!!! I would worry if my customers were only pleased. Pleasing your customers is not good enough for anyone. Surely.
Later you say "Our Preferred Business Partners are highly respected, valued and recognised in the quality and customer services arena." and this explains it all cos you only have one that you can find!
Hate to be picky but this potential customer has missed something.
Brilliant idea
Brilliant direction
Not sure if your (Cust 1st) Business Link roots (mediocre, bland unfocused, employee-led indifference) isn't showing.
Sorry for the outburst. Will go and drink large G&T!
Madge
Cust First has a point if the service sector is a s poor as Frea makes out.
Are they the answer? Madge clearly thinks not.
I am with Andrew - Cust First needs to get into bed with Craven or similar - have you read Customer Is King? Kick-Start? Have you seen the man? You will want to bite his arm off!
Bill
Ouch!
Stop attacking Frea. Back to the plot. R-Carlton is stunning and v expensive. So is Sandals. Also try Le Merideien Been to all. Nothing has touched since. But five star should be five star. Smooth operators.
Jan
... but most customer service is not great. Look at the entry at http://robert-craven.blogspot.com/2009/07/naming-and-shaming-royal-mail.html to see how good large organisations (eg R Mail) are at customer service.
So, should we leave them to do a bad job? Should we (or someone) try to help them?
If so, are Customer First, as self-appointed ex-Quango, the right people?
When you look at their website do you think "Gosh, these people really know what they are talking about! I must phone them right now so that my business can see immediate improvements in sales and profits!" If this is the case then Customer First will do well.
Has anyone ever said "The BL is so much better since Custoemr First was introduced." Has anyone even noticed?
Jim (BL)
Yes, back to the plot. I think we're all coming from the same place - passionate about excellent customer service being the norm and not something that one has to shell out £1k a pop for.
Individuals should be treated with respect, honesty and integrity, no matter how much they pay. Here at Customer First we're striving to work with businesses that have the same set of values - that want to make a difference - that want to be remembered because they went that extra mile.
That's a good reason to get out of bed each day. Hand on heart, we're coming from the right place...and most importantly we're getting out there and chipping away at it.
Merry Christmas to all and hope that 2010 brings some memorable positive service experiences!! :-)
And they all lived happily ever after.
Or did they? Great dialogue going on here. A pleasure to read.
Andy, don't go winding things up just when we've all calmed down.
And yes some cracking dialogue.
Madge
Happy with the general discussion but feel that there seems to be some hostility going on. Hidden agendas or too much gin?
Glad to see that hostilities have been suspended.
Tracy
Ritz Carlton embodies the whole customer service ethos in a large organisation. We do not need to totally reinvent the wheel when someone has already done it for us.
Nick
PS I work for a bank and it shouldn't take brain surgeon to work out how to put the customer at the centre or start of every activity.
Decent customer service should be a right.
More on this please Mr R.C.
Just trying to buy insurance from PetPlan. They have failed to phoneback three times (as promised). I give up.
Also spent last night trying to change Easyjet flights (where there is no 'back' button on the site).
So frustrating. And unneccessary.
Tracy
Frea
How totally and utterly depressing (not you but the state of affairs that you describe).
For once, words fail me.
Madge
Frea said....
Completely agree that passion, energy and actually giving a 'hoot' about your customers are what makes the difference. But I've got to say after 3 months of being on the road speaking to 100s of businesses I can think of only a handful of people that I've met that genuinely have this energy that's capable of inspiring a whole organisation to raise its service standards.
Seriously, these passionate individuals are a rare breed. I've spoken to a lot of FTSE 100 companies in recent weeks that are having to go back to basics - e.g. 'Who are our existing customers?' for starters?
I've met some customer service champions that are passionate but are fighting an internal battle to be heard above the loud number crunching.
Therefore I'm supportive of quality standards that help businesses adopt best practice....in the absence of those rare leaders that can genuinely inspire great service.
Frea (from Customer First UK - so not biased at all!)
ps You'd think 'normal' customer service would be common sense, but 75% of organisations don't achieve 'Putting the Customer First' because....believe it or not..they don't follow up customers post service. It seems that most have forgotton to politely ask 'how was it for you, dear?!'
Yes, back to the plot. I think we're all coming from the same place - passionate about excellent customer service being the norm and not something that one has to shell out £1k a pop for.
Individuals should be treated with respect, honesty and integrity, no matter how much they pay. Here at Customer First we're striving to work with businesses that have the same set of values - that want to make a difference - that want to be remembered because they went that extra mile.
That's a good reason to get out of bed each day. Hand on heart, we're coming from the right place...and most importantly we're getting out there and chipping away at it.
Merry Christmas to all and hope that 2010 brings some memorable positive service experiences!! :-)
Will look up the book on Amazon.
Anyone interested in the hospitality industry and customer service needs to look at the R-Carlton model.
They seem to take customer service seriously as opposed to paying lipservice to it.
Have talked to more than several businesses about Cust Service but have rarely been convinced that they actually put the customer at the front of their minds (ahead of short term profits).
Robert
Indeed, it is a nice benchmark for customer service, and reiterates the fact that one gets what one pays for.
It costs an average of $1200 per night room only, and another $80 per person for breakfast, $40 for in-room tea/coffee, all of which require tips be given.
I'm somewhat doubtful that each and every member of Ritz-Carlton staff is empowered to spend up to $2000 on individual guest satisfaction though; as in every business, checks and balances have to be firmly in place to prevent abuse, and to ensure profit quotas are met.
However, the ethos is superb. If only more businesses would focus on real customer relationships and investing in the future/people, instead of being obsessed with things that add absolutely no value to their brand.
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