Puttin' on the Ritz: Does Your Guest Service Compare?
Probably not, but it can!
Well we made it! One year has passed since the launch of All Things Retail. I wasn’t sure at the outset about several things:
Could I publish an issue every single week? (done!)
Would readers subscribe and join me on this journey? (almost 7,500 have subscribed, so far!)
Will I be able to truly add value the reader’s businesses? (anecdotally, many readers have commented that they have derived meaningful value from All Things Retail; hopefully you have as well!)
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This week we are going to jump into the subject of guest service, and one of the best providers of it anywhere, the Ritz-Carlton chain of hotels. Props to Dick LoPresti, who introduced me to the Ritz Credo and service values many years ago at Party City. I have been a believer ever since!
What does a hospitality chain have to do with the retail business? Guest service is what! The concept of serving the customer at the highest levels possible is extremely powerful, and can (should) be adapted from industry to industry. I have written on several occasions that customer service in retail today is fair at best, and those merchants that can offer something better than fair will enjoy a competitive advantage. Imagine if the service you offer was truly superb? How dramatically would that set you apart from your competition? What level of customer loyalty would result? Would you attract new shoppers based on word-of-mouth and social media/proof virality?
The Ritz-Carlton is widely regarded as one of the classiest and highest quality hotel chains anywhere. They have a long and storied history, but let’s focus on the “now”. The Ritz operates luxury hotels and five-star resorts worldwide and have built their outstanding reputation on providing superb guest service. They have one of the highest J.D. Power ratings in this category and have won more awards for customer service than anyone can track.
So if you are ready to explore a framework for improving your guest service, read on!
Gold Standards
The Ritz established its “Gold Standards” early on, and has been living by them every since. They speak clearly about the values, expectations, and philosophy regarding guest service, as well as the brand. These standards are taught to all team members and the expectations for adherence to them is high. Having such clarity, consistency, and simplicity in a set of operating principles has created not only a high level of commitment to these standards, but also a competitive moat that will not be breached easily.
The Ritz goes a step further and publishes the “Gold Standards” on their website for all guests to see. Creating these service expectations in the minds of their customers effectively creates an additional level of burden for every Ritz team member to adhere to them consistently.
From the Ritz website:
“Our Gold Standards are the foundation of The Ritz-Carlton Hotel Company, L.L.C. They encompass the values and philosophy by which we operate and include:
The Credo
Motto
Three Steps of Service
Service Values
The 6th Diamond
The Employee Promise”
The Credo
The Credo is the overview, the broad promise, of how the Ritz-Carlton and its employees will service its guests. This sets the expectations for every guest and from every employee.
The Motto
If you were unfamiliar with the Gold Standards, you still may have heard this motto as it has been written about often and is quite famous:
“We are ladies and gentlemen serving ladies and gentlemen.”
This certainly communicates the message that employees must treat Ritz-Carlton guests with dignity, but also infers that they must act the same way toward their colleagues. Perhaps most importantly, it serves to raise the self-esteem of each team member as it places them on the same level (in the eyes of the Ritz) as their guests.
Three Steps Of Service
The Three Steps of Service are simple to understand, easily remembered, and provide a great base for building additional guest service expectations from. These steps call for giving guests a warm and sincere greeting using their name, anticipating and fulfilling their needs, and saying a fond farewell, again addressing them by their name.
Twelve Service Values
These service values are the core elements that Ritz-Carlton employees must understand and commit to as they perform their work. Note that the verbiage is not structured as the company defining deliverables (ex: “all employees must be responsive”). Instead, the wording is all about each team member making these commitments to themselves. A small but powerful difference.
I build strong relationships and create Ritz-Carlton guests for life.
I am always responsive to the expressed and unexpressed wishes and needs of our guests.
I am empowered to create unique, memorable and personal experiences for our guests.
I understand my role in achieving the Key Success Factors, embracing Community Footprints and creating The Ritz-Carlton Mystique.
I continuously seek opportunities to innovate and improve The Ritz-Carlton experience.
I own and immediately resolve guest problems.
I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met.
I have the opportunity to continuously learn and grow.
I am involved in the planning of the work that affects me.
I am proud of my professional appearance, language and behavior.
I protect the privacy and security of our guests, my fellow employees and the company's confidential information and assets.
I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.
The 6th Diamond
Here is how the Ritz defines “The 6th Diamond”:
“Mystique, Emotional Engagement, Functional”
Huh? Actually, it’s quite clear after a bit of thought. This is how the Ritz-Carlton expects to surpass even the best levels of service provided by others (in theory, “5-Star or 5-Diamond” service).
At the base are the functional items that the customer is expecting, e.g. a clean room, quick check-in, quality surroundings, daily housekeeping, etc. The middle and top of the diamond is where the core differentiation occurs. By anticipating and fulfilling each guest's needs, they create an emotional engagement with the customer. As the team goes above and beyond to serve the guest, the mystique of the Ritz-Carlton is created and ultimately expanded. The 6th Diamond is expected to "build strong relationships and create Ritz-Carlton guests for life".
The Employee Promise
The Ritz-Carlton recognizes what we all hopefully realize, that its team members are its most valuable resource. They even state that in their Employee Promise:
“At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests.
By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company.
The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened.”
Every Ritz-Carlton team member reflects the brand promise, so you can imagine the company takes the selection process very seriously. Candidates must be sociable, caring, interested in learning, and have the spirit to serve. “We don’t hire for technical talent but natural talent,” says the General Manager of the Ritz-Carlton in Cancun, Mexico. The theory is it’s easier to train employees to learn technical skills (ex: housekeeping) than it is to replace the natural talent of anticipating a customers’ needs, being sociable, having a positive demeanor, and more.
Every employee completes at least 250 hours of training in their first year. Recognizing that team members have different learning styles, the Ritz offers orientation in different formats, such as one-on-one coaching, online training, classroom training, or week-long seminars.
“We take training and learning very seriously. We focus on the design of learning, measured competency, and whether the skills learned are truly being delivered to the customer. We are on a journey right now where we’re evolving from a training organization into a learning environment. We understand very clearly that 70 percent of learning realistically is on the job. This feeds through to operational certification, making sure that within the employees’ first 21 days, they are certified within their jobs, and in alignment with the Gold Standards for the hotel.” says a Ritz spokesperson.
Employee Empowerment
If you hire great people, teach them well, ensure they understand your brand mission, it stands to reason that you should trust them to make decisions (and provide them the authority to do so) that are in the best interest of the business and its guests. The Ritz does just that.
Every team member is given wide latitude to resolve customer issues without the need to ask their supervisor for permission. When facing a problem, employees are entrusted with the power to do what seems best at the moment. Without that empowerment, customers must typically work their way up the chain of command (the classic “I need to speak with your supervisor” that we all hate) and repeat their story to several people before hopefully getting their problem solved. A recent survey reveals that “82% of customers say the number one factor that leads to a great customer service experience is having their issues resolved quickly.”
An added benefit is that empowered employees care more about their work knowing they are trusted, valuable, and able to solve guest issues. The freedom to take initiatives and express creativity without asking permission from a manager allows them to feel a meaningful pride of ownership in their work.
Steve Jobs was a Believer
When Steve Jobs was getting ready to open the first Apple stores in the early 2000s, he asked his employees to share their best experiences as customers. A similar answer came back from almost all of them: the most enjoyable customer experience took place at a Ritz-Carlton hotel or resort.
So Jobs sent all his future store managers to the Ritz-Carlton hospitality training, which emphasizes the brand’s philosophy of offering personalized service and anticipating guests’ needs. These techniques eventually set the foundation for Apple stores. Walk into an Apple store today and you’ll notice the same personable and straightforward approach to customer service as the Ritz—a warm welcome, friendly demeanor and once they get to know your name, a personalized greeting.
If it was good for Steve, it should be good for all of us!
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Quotes of the Week:
“We are superior to the competition because we hire employees who work in an environment of belonging and purpose. We foster a climate where the employee can deliver what the customer wants. You cannot deliver what the customer wants by controlling the employee.” – Horst Schulze, Former Ritz Carlton President
“The most important thing in communication is hearing what isn’t said.” – Peter Drucker, Best-Selling Author