The Golden Rules of Customer Service

The Golden Rule, "Do unto others as you would have them do unto you," may seem self-evident in the way we try to conduct our personal lives. Yet this axiom is assuming new importance as a guiding principle in the world of business.

To succeed, you must give your customers what they want, not what you think they want. And, because you never know who might eventually become a customer, that means providing courteous, friendly service to your suppliers and others with whom you come in contact, as well as current customers. If you want to keep customers coming back for more, practicing the Golden Rule has never made better business sense.

Here are three Golden Rules of customer service, from the Small Business Administration:

Golden Rule #1: Put the Customer First

"A strong customer ethic must guide your business from the inception," writes author and business owner Paul Hawken in his book, Growing a Business . "Whether you manufacture, grow, produce, distribute or sell, you are in a service business."

The first step in customer satisfaction is to set standards. Then make sure everyone in the company understands them. However, Hawken warns, if your employees are not customer-oriented, no standards or goals will change that. He explains, "We concentrate on hiring people who embody the quality of service for which we strive. It is difficult to teach someone to be helpful and serve others if he or she is misanthropic to begin with."

Hiring the best people means trusting them. Your employees should be able to do what is necessary to make the customer happy without fear of reprisal. Says Hawken, "Policies and procedures are helpful only as guides toward an end result. When employees run out of possibilities to make the customer happy, they must have the latitude to improvise to make it right."

Golden Rule #2: Stay Close to Your Customers

In the smartest companies, asking questions and listening carefully to the answers is an important part of customer service. These firms train their employees to focus on what the customer is saying, then tailor products or services to meet customer needs. In the words of one corporate executive, "Knowing what's on the customer's mind is the smartest thing we can do."

There is no substitute for getting out "where the action is" to learn from the customers themselves how you might serve them better. The best business owners not only are committed to staying close to their clientele but also identify with them. They give their customers the level of service they themselves would expect to receive. A good relationship with customers involves paying attention to every link in the distribution chain. That means listening to everyone who helps get your products to market and asking them for suggestions on improving your service. Be sure to take advantage of feedback from employees, especially those who deal with customers.

Losing a customer can be expensive. Studies by the Technical Assistance Research Programs Institute show that 91% of unhappy customers will never buy again from a company that has displeased them and will also voice their dissatisfaction to at least seven other people.

According to the Customer Service Institute, 65% of a company's business comes from existing customers, and it costs five times as much to attract a new customer than to keep an existing one satisfied.

Golden Rule #3: Go the Extra Mile

Many business owners search for a special touch that will help them stand out from the crowd. Discount coupons, longer hours, home delivery or free coffee, for example, all show customers you want to take that extra step to please them.

Some of the most effective "extras" are really very basic best practices for conducting business. These include answering the phone by the third ring, treating customers respectfully and courteously at all times, greeting them by name, answering their questions promptly and, if you can't, getting back to them with an answer as quickly as possible and manufacturing high-quality goods that work the first time and keep working.

Five Rules of Customer Care

• Conduct a customer survey. Talk to them. Ask questions. Learn their attitudes, what they want and what they dislike. Profit from the ideas, suggestions and complaints of your present and former customers.
• Check employees' telephone manners periodically. This is particularly important for small businesses, as bad telephone service can undermine other constructive efforts to build a profitable enterprise.
• Train employees in the rules, such as prompt answers and a cheerful attitude of helpfulness. Have someone whose voice is unfamiliar play the role of a customer or prospective customer, preferably a difficult one.
• Make customer service a team effort. Use group meetings, memos, posters and in-house publications to build customer consciousness throughout the organization. Continually emphasize that getting and keeping customers requires team play. Seek out employee input on how to improve customer service.
• Extend your efforts after hours. It's the friendly feelings people have that draw them to you and your business. Take advantage of the relaxed atmosphere of social occasions or a neighborly chat over the back fence to turn friends into customers, or to reinforce the loyalty of existing ones.

For more tips on customer service from the U.S. Small Business Administration, go to www.sba.gov .

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