The Million Dollar Greeting. Dan Sachs
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millennials have to learn to appreciate the value of hospitality without relying on the older practices of mentoring and apprenticeship, a change that is only going to become more pronounced as they rise to leadership positions throughout the service economy. This is a problem because the new workforce has less exposure to the customer’s need to be recognized, appreciated, and respected, especially given the challenges posed by technology when it comes to personal interactions.
Most best-in-class organizations in this book understand that younger employees are less likely to have an inherent understanding of how to manage direct relationships over time. This means that in addition to accepting the value of efficient product delivery, businesses must teach their employees communication and relationship-building. (As the businesses profiled in this book have done, and done well.)
Of course, many service sector organizations have a training program of some kind, but new employees do not necessarily have the same tools at their disposal to establish a culture of exceptional service that previous generations had. At the same time that there’s been an increase in formal customer service training programs in most companies, there has also been a decrease in what I’d call “informal” customer service training. In the past, experienced employees passed their knowledge to the next generation of workers, so even after the week or two of training ended, there was still plenty of on-the-job instruction. Although many factors have contributed to the decrease in informal training, the consequences will continue to be felt for years due to this large demographic switch.
All of which is to say, the organizations that can harness the energy of millennials and master this challenge will increase customer loyalty and profits.
Accountability: Where the Rubber Hits the Road
Throughout the examples in this book, we will see the motivations and associated habits of great leaders. Each of them has a unique story, but they all share certain common traits. In the end, there are five characteristics that seem to weave in and out of each story: authenticity, accountability, culture, community, and vision. These values manifest themselves in hiring practices, training routines, performance reviews, corporate communication, and beyond.
Not all of these traits are easily mastered, however, as Susan Salgado, the hospitality consultant, explains, “Leadership is where the rubber hits the road, and where we see the most clients struggling with it is in accountability. They’ve got a vision of what they want the customer experience to look and feel like, but they are not good at holding people accountable to that.” It’s not surprising to hear that accountability is important, but, as you will read throughout the book, these leaders seem to hold themselves to a higher standard of accountability than others I have met. They recognize that vision alone is not an adequate substitute for consistent behaviors that support their vision.
One story that comes to mind from the book is from Richard Coraine, chief of staff at Union Square Hospitality Group, one of the country’s largest and most acclaimed restaurant groups. He likens accountability to cleaning a kitchen. You tell an employee to clean the kitchen, and the dedicated employee thinks he’s done an excellent job. Then, you run your finger under the counter and find it dirty and wonder why the employee thought the kitchen was clean when it obviously wasn’t. But, you, the manager, did not explain to the employee what you meant by a “clean” kitchen at the outset. As a result, you are disappointed, the employee is frustrated, and the kitchen is not clean. Who is to blame?
Great leadership requires a consistent embrace of behavior that begins and ends with accountability. Especially in an age where younger employees are less likely to trust authority and are looking for a collaborative work environment, it is imperative that leaders consistently deliver authenticity and accountability in the workplace. As you will read in example after example, when employees feel like there is meaning and accountability throughout the organization, they will deliver exceptional service to customers.
You Need the Right Tools
Some businesses in the hospitality sector, including hotels, restaurants, and coffee shops, have developed a methodical, data-driven structure to the steps of service in order to retain customers and increase profits. You as the customer don’t realize any of this; all you know is that these businesses deliver memorable experiences not just occasionally but all the time. They’re the places you come back to again and again because you know you’ll experience excellence, no matter where or what time of day you arrive. Many of these tools have existed since the first days of the modern restaurant 250 years ago, when the first restaurants were called Maisons de Santé or “Houses of Health” in Paris. However they developed, they continue to play a large role in satisfying you as a customer.
I believe that harnessing the tools of the hospitality sector and applying them purposefully to other aspects of the service economy, such as medical and financial institutions, online retailers, and telecoms, will not only help companies develop formal training practices but also lead to a return on investment (ROI) with increased profits.
This book will begin by exploring the origins of customer service. It will then review some of the key components and models of quality service delivery, and then it will discuss the best practices with industry leaders throughout the service economy. You will read about how great organizations hire the right employees for their culture, motivate and train their staff, and set up structures to ensure great service, whether they employ thousands of people worldwide or a few hundred in suburban Chicago. You’ll see how investments in training have paid off with increased loyalty, revenue growth, and, ultimately, increased profitability.
As Susan Salgado puts it, “It’s not like it costs money to do this. We’re talking about how we treat people, and it’s not necessarily about throwing free stuff at them. It’s not going to decrease your productivity. In fact, you can increase productivity significantly because you’ll have fewer customer complaints you’ll have to dig your way out of.” In the end, leading through hospitality is a commonsense formula for success and offers ways for making all of us smile just a bit more often.
Understanding the Basics
Isn’t it wonderful to find a product you love? When I think about it, the mattress I’m currently using is spectacular and well worth the premium I paid for a good night’s sleep. However, after about a year, I started noticing some inconsistencies in the structure of the product. Some parts felt worn and uneven and I wasn’t sleeping as soundly, so I called the store where I purchased the mattress to discuss the issue. Prior to the call, I found the receipt and noticed it had a ten-year warranty that said I was entitled to a full replacement if the mattress was defective, which it seemed to be. However, after speaking with a young and inexperienced salesperson, I could immediately tell that resolving my problem wasn’t going to be easy. In fact, it took multiple calls over several weeks before the company finally accepted responsibility for the product failure. Even though I got what I wanted (and was entitled to), by the end of the ordeal I wasn’t relieved or thankful. I was extremely irritated.
Here’s how this example should be illustrative for every company in the service economy, including yours. The hassle of taking time out of my day to repeatedly deal with the matter soured me on the company to such an extent that I will never purchase a similar mattress again even though it is by far the best one I’ve ever had. While this is a simple example, it highlights the reality that the “best in class” service providers have already figured out: wonderful products are nothing without exceptional service.
Hospitality Leading the Way
Unlike many other industries, the hospitality industry is built on the relationship between an organization—whether a restaurant, hotel, or even a casino—and its target customer. Moreover, hospitality businesses have had to focus on customer service for years to retain and broaden their customer base. As a result, these organizations have developed significant systems and points of service that not only differentiate them from each other but also from the rest of the service economy.
In many cases, exceptional customer service providers in the hospitality industry must navigate constant internal physical and interpersonal constraints while simultaneously managing the expectations of their customers. The only way hospitality companies have been able to meet high expectations is