How to Deliver Great Customer Service

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7. Sometimes It's the Little Things That Matter
Small gestures that anticipate customers' needs or attend to their comforts -- such as offering a cold glass of water on a hot day or a children's area with toys -- go a long way toward winning them over.

8. If You Can't Help a Customer, Point to an Establishment That Can
And saying "You might try Smith's, on Main Street" won't make nearly as strong an impression as confirming that Smith's has the item in question and giving directions to Main Street. "This is the ultimate in customer service," says Tom Maydew, regional director of the SBDC in Pocatello, Idaho. "That customer will be back."

9. Show Your Appreciation
One important element of retaining customers is communication. Willson suggests a personalized thank-you note after a deal or sale -- "If Nordstrom's can do it, everybody can do it" -- and even a follow-up phone call a month or so later. In a retail business, loyalty programs or rewards cards drive repeat business (as well as help you collect information about what your customers are buying). Many businesses send out birthday and holiday cards; Proffer prefers marking the anniversary of a client's or customer's first purchase.

10. Treat Your Best Customers Better
If your company relies on a relatively small number of clients to provide a disproportionately large share of revenue, it makes sense to devote a disproportionate amount of time and energy to serving them. (Think of airlines and the escalating benefits in their frequent-flier programs.)

Some luxury retailers and services practice "clienteling," by which all of the activity around every customer -- every conversation, every visit, every transaction -- is logged with contact management software. Most businesses need not go that far, but it's well worth keeping your best customers informed. You might, for example, keep track of their preferences and let them know when new merchandise arrives that they are likely to be interested in. You might also organize appreciation days just for those clients, or invite them to private pre-sales in advance of the public.

Resolving Customer Disputes

It's bad enough when a customer is unhappy with your product or service. But if the attempt to redress the problem is frustrating or fruitless, it makes matters much worse. A satisfied customer may tell one or two friends about your company, says Richard Proffer, but "an angry customer might tell a dozen." Some aggrieved customers can never be placated, but, more often, successful dispute resolution lies in a business owner's hands.

Solve the problem when it occurs. It's always best when people on the floor or in the field are the first line of response, say Proffer and Marc Willson. Vest them with authority to resolve certain types of problems themselves.

Don't greet agitation with agitation. "Our first tendency is to match our tone to their tone, but you don't want to do that," says Proffer. "If we stay calm, their voice will start coming down, and they'll begin to relax."

The Five A's. Proffer says it's helpful to think of resolving a dispute as a five-step process called the Five A's: Acknowledge the problem. Apologize, even if you think you're right. Accept responsibility. Adjust the situation with a negotiation to fix the problem. Assure the customer that you will follow through.

Don't forget salesmanship. The skills and techniques of good selling discussed earlier are even more valuable in difficult situations. Address customers by name, and repeat what they've said. "Whether you resolve the issue or not," says Willson, "they'll see that you have their best interest in mind."

Hiring for Service

For employees who interact with customers, technical proficiency at the job isn't enough. Nor is passion for your product or service. Staff members who deal with customers ought to be intuitive, empathetic, and good listeners. Here are tips for vetting those traits.

Interview in a neutral, public place. Tony Maggiotto suggests meeting the prospect in a café or restaurant to see how he or she interacts with other people -- like the wait staff.

Ask the right questions. Ask questions about how the applicant reacts to a situation. For example: "Tell me about a recent situation in which you had to deal with a very upset customer." Check references in the same fashion. You should also ask questions to see how well the interviewee listens and processes information. "Outline a problem and ask them to respond to that," suggests Susan McCartney. "Even if they ask you questions to clarify, I would give them points for that."

Resources

Inc.'s collection of customer service articles is at www.inc.com/customer-service.

The Customer Service Zone (customerservicezone.com) has aggregated hundreds of articles from around the Web on dozens of customer service topics -- and it's all free.

Customer Service Manager (customerservicemanager.com) offers many short articles on customer service topics authored mostly by consultants.

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