March 25, 2011

Exceptional Service,
Exceptional Profit
The Secrets of Building a Five-Star
Customer Service Organization
Leonardo Inghilleri and Micah
Solomon
2010 Leonardo Inghilleri and Micah Solomon
Adapted by permission of AMACOM, a division of The
American Management Association
ISBN: 978-0-8144-1538-2

Introduction
The key to a successful business is customer loyalty.
Building enduring business relationships is a timeless strategy that transcends factors that are out of a
service organizations control, including technological changes, economies of scale, and exchange rates.
Solid customer loyalty serves as insurance against the
risks of a commodity being viewed as replaceable or
interchangeable.
In Exceptional Service, Exceptional Profit, Leonardo
Inghilleri and Micah Solomon share a variety of techniques pioneered by the Ritz-Carlton hotel chain,
Netflix movie rental service, and other companies that
have earned a loyal customer base. From mastering
the four elements of customer satisfaction to handling
service failures to personalizing the online experience, organizations can make the shift from reactive
to anticipatory service and build a base of clients that

will keep coming back for more.

Satisfaction Guaranteed
Inghilleri and Solomon consider customer satisfaction
a prerequisite to establishing loyalty. Although satisfied customers are still at risk of being wooed away
by a competitor, they will believe a business offers
a reasonable product or service and, if asked, offer
a positive assessment. The first element of customer
satisfaction is a perfect product, designed to be as
defect-free as possible, and supported by a supply of
staff and provisions that can maintain perfection in
the face of absenteeism, service issues, and other foreseeable boundaries.
Second, the product must be delivered by caring
people. For example, a customer might experience the
perfection of an on-time, comfortable flight, but a curt
and impolite ticket agent may adversely affect that

Business Book Summaries March 25, 2011 Copyright 2011 EBSCO Publishing Inc. All Rights Reserved

Exceptional Service, Exceptional Profit

persons satisfaction. Third, the perfect product must

also be delivered in a timely fashion, especially as the
definition of on-time is getting shorter and shorter.
If a service takes longer than the time anticipated, the
provider should communicate this ahead of time so
customers can reset their expectations.
The final element of customer satisfaction is an effective problem resolution process. A breakdown in
service or product quality can lead to an emotional
moment that can make or break the relationship with
a customer. Although avoiding such problems is the
ideal, an effective recovery can restore and even
strengthen a customers confidence in a businesss
capabilities.

Words Count
Language is the underpinning of all components of
customer satisfaction, from describing the product
to handling service failures. Inghilleri and Solomon
suggest that companies adopt a distinctive style of
speech, not just for consistency of service but also to
promote collaborative pride. For example, the RitzCarlton trains staff to use polite phrases such as My
pleasure, Right away, and Certainly, and forbids
okay, hey, and other less formal terms. The Ritz
style is so successful that it is imitated throughout the
industry.
The language a company adopts should take into
account what works best with customers as well as
what might turn them away from a product, and the
level of formality in which the company operates.
Once these phrases are worked out, a lexicon or language handbook should be developed. The language
must put customers at ease and not come across as
condescending or coercive. For example, instead of
the negative-sounding You owe, Solomon advises
using, Our records show a balance of
Staff should focus on their language during the most
crucial moments in their conversations with customers. Their hellos and goodbyes should be warm and
personal and dialogue about service failures should
be handled with grace. Negative nonverbal cues
such as looking at the computer screen instead of the
customer can hamper communication, and giving
directions without making the effort to show customers how to find their destination can also be unsettling.

Leonardo Inghilleri and Micah Solomon

Key Concepts
In Exceptional Service, Exceptional Profit,
Leonardo Inghilleri and Micah Solomon share a
variety of techniques pioneered by leading companies that have earned a loyal customer base,
including:
Providing exceptional service is the key to
building customer loyalty, which can ensure
the success and survival of an enterprise regardless of external forces such as economic
downturns and technological change.
Rather than merely reacting to customer
requests, organizations should strive to
provide anticipatory service by tracking
customer preferences and frequenting their
own facilities to understand what customers
experience.
A response to a service failure and the openings and closings of transactions are the
most crucial emotional moments in customer service.
Companies can distinguish themselves from
the competition by building web sites that offer
valuable information in both long and short
form to meet general needs, and features such
as chat buttons, toll-free numbers, email buttons, and options for the disabled for a more
personalized experience.
g g g g

Information about the author and subject:

www.leonardoinghilleri.com
www.micahsolomon.com
Information about this book and other business titles:
www.amacombooks.org
Related summary in the BBS Library:
Strategic Customer Service
Managing the Customer Experience to
Increase Positive Word of Mouth, Build
Loyalty, and Maximize Profits
John A. Goodman

Business Book Summaries March 25, 2011 Copyright 2011 EBSCO Publishing Inc. All Rights Reserved

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Exceptional Service, Exceptional Profit

All phone calls should be answered before the third

ring. Screening calls can alienate people; if necessary,
callers should be referred to the appropriate staff as
quickly and courteously as possible.
As more and more interactions take place over the
Internet, businesses should strive to come across as
more personal. Customers should be able to reply
to mass emails, all emails should contain a salutation, and live chat staff people should be named and
expected to communicate with participants as warmly
as they would in a face-to-face encounter.

A Careful and Thoughtful Recovery

Leonardo Inghilleri and Micah Solomon

The second step to recovery involves going over the

complaint with the customer, which fosters a feeling of collaboration in fixing the problem. The third
step is to fix the problem and then follow up, which
may mean replacing the service or product. Because
of the inconvenience the problem has caused, offering something extra might alleviate the customers
sense of injustice; this could be an upgrade or additional service, or the opportunity to provide valuable
feedback to help the company improve its product or
practices. The three-pronged approach to following
up includes:

1. The immediate, in which the staff person who

Although in a perfect world there would be no service
fixes the problem checks in with the customer
failures, handing them the right way can lead to customer loyalty. The first step is the
delivery of a sincere and personal Youll find an opportunity hidden inside your companys worst
apology that makes the customer moments: the opportunity to bring a customer closer to you.
feel as though he is being listened Indeed, you can learn to handle service breakdowns so masterto and valued, and that the staff
fully that they actually help you to create loyal customers.
person is on his side. Inghilleri
and Solomon recommend avoid2. The internal, involving making other staff aware
ing condescending statements such as, If what you
of the service failure so that they can learn from
say is correct, and stretching out apologies until the
the experience or keep it in mind when dealing
anger is diffused and customers express that they
with the same customer, and
understand that the failure is not the staff persons
fault. Questions such as, Did you plug it in? can be
insulting to a customer if asked too early.

About the Authors

Leonardo Inghilleri is Executive Vice President
and Managing Partner of West Paces Consulting, a subsidiary of the West Paces Hotel Group.
He has created the Ritz-Carlton Leadership
Center and Learning Institute and applied his
service expertise in working with Ritz-Carlton,
Walt Disney, and other companies.
Micah Solomon is President of Oasis Disc Manufacturing and founder of the College of the
Customer website. His techniques have been
featured in Success magazine, Seth Godins book
Purple Cow, and other case studies and profiles
in the business press.

3. The wrap-up, in which the staff person calls or

sends a handwritten note at the end of the recovery.
The recovery process is not complete without the
fourth step: the deposition, or documenting the problem in detail. The information should be entered into
an incidents box, problem log, or verbal report which
gathers data that can be further analyzed to pinpoint
patterns that can lead to identifying the underlying
causes for repeated service failures.
While not every staff person should be equally
involved in customer service or trained in the same
specialties, all employees need to be able to handle
customer complaints. Staff members who are empowered to resolve issues themselves or drop what they
are doing to find the right person who can resolve the
issue will help diffuse complaints. Also, sales reps
should be encouraged to offer something extra even
if the person they approach is already a customer, in
order to make up for their inconvenience.

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Exceptional Service, Exceptional Profit

Systematic Noting and Sharing

Excellent customer service is the result of custom
fitting. In order to provide individualized experiences, all of a companys employees need to use and
continually update a tracking system that contains
information about customers and their preferences.
Inghilleri and Solomon outline seven key principles
for building such a system:
1. Keep Your Systems Simple: The KYSS approach
ensures that a companys staff is not bogged down
by too many details and difficult-to-find data.
2. Anything important to the customer belongs in the
system: Categories such as roles, goals, and preferences can keep staff apprised of what the customer shows interest or takes pride in, as well the
best time of day for contact. Other types of information to have on hand include missteps from
prior transactions, current problems, any product/
services references made by the customer, input
from surveys or comment cards, known personal
ties to the establishment, number of purchases
and visits, notation if the customer has been difficult, and personal facts about marital status and
number of children.

Leonardo Inghilleri and Micah Solomon

artificial-sounding script.
7. Use technology in a clever, not creepy manner: Avoid
using intrusive questioning in online forms, make
certain questions optional, or explain the reasons
for asking them.
Clerks and other staff need to exercise caution; unless
it is necessary for doing business, asking the wrong
questions or revealing the wrong knowledge can be
an off-putting invasion of privacy.

Think Like a Customer

One of the best ways for companies to determine
the effectiveness of their services is to have employees frequent their own services and facilities to get
a sense of what the customer is experiencing. For
example, a person dining alone may feel more comfortable if offered reading material. Inghilleri and
Solomon explain that building procedural anticipation requires managerial vision, judgment, and
persistence. But it brings you closer to achieving customer loyalty.

Inghilleri has worked with a team of Ritz-Carlton

employees on a Continuous Improvement System
known as Mr. BIV (Mistakes, Rework, Breakdowns,
Inefficiencies, and Variations in
work process). Each word in the
Dont be deterred from collecting informationin a sensitive
acronym stands for a possible
way, for respectful uses. There is little thats more important
cause of a defective situation that
to your growth as a company.
needs to be addressed immediately. It is important to find all of
3. The information needs to be available in real time: Bethe reasons for a problem, such as late room service,
ing able to recognize customers when they enter
and alert the appropriate people who can attend to
the place of business and addressing them in their
them. Employees who are responsible for defects
preferred manner decreases the risk of alienating
should never be attacked. There is a greater chance
them.
of discovering faults within an underlying process if
they feel comfortable enough to reveal issues,.
4. Preferences can change: It is a safer bet to ask customers to confirm a preference before delivering it
based on a prior assumption.
5. Moods can change, so track them: Noting the changes
in customers level of enjoyment over the course
of their experiences can help pinpoint what can be
done to improve their mood.
6. Avoid a wooden delivery: Customers should be
greeted and handled with enthusiasm, not with
their names mispronounced or inserted in an

Inghilleri and Solomon are advocates and adopters

of manufacturing-based systems and controls found
at companies such as Xerox and FedEx because they
help locate and reduce waste. Toyotas Taiichi Ohno
has identified seven examples of waste that can be
addressed to improve service and increase value:
unnecessary transport, excess inventory, excess and
non-ergonomic motion, waiting, overproduction/production ahead of demand, inappropriate processing,
and defects.

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Exceptional Service, Exceptional Profit

Leonardo Inghilleri and Micah Solomon

Service-focused teams might have reservations about

5. Empathic skill, or the ability to understand what
such systems because they feel that anticipating
customers are going through and interact with
customers needs ahead of time cannot be achieved
them accordingly
without excess inventory, and going to extra lengths
Employers should maintain high standards in hiring,
to satisfy the customer may not be the most efficient
as one inferior employee can slow down or comuse of time. However, companies can still strive to be
promise the service other employees are delivering.
efficient behind the scenes, using such methods as
Consistency in the recruitment and selection process
improving food preparation in kitchens or streamwill help employers develop personnel benchmarklining customer choices in online systems. Before
ing. It is also useful to compare new applicants to the
instituting any streamlining plan, it is important to
best current employees to see if their skills match up.
assess the value of the component to the customer.
Many people cannot pinpoint
Give that friendly, insightful, responsible applicant who has
what aspect of their experience
made it positive, and some form a knack for making people feel comfortable a shoteven if
emotional attachments to specific it means passing over an applicant with a rsum that more
customer service rituals that they closely matches the jobs day-to-day functions.
do not realize they missed until
Sending new employees off to be shown the ropes by
after they are gone.
just any co-worker will not ensure that the right tone
Internet businesses often have the advantage of being
is set on Day One. Instead, the CEO or other leader
able to provide anticipatory service by using software
can instill the core customer service principles, values,
algorithms. For example, Netflix can use the rental
and beliefs, and explain the employees important role
history of both the customer and others who have
in carrying out the companys mission. When new
made similar choices to offer recommendations for
team members walk into the company, they should
further orders. Because the information used is not
be provided with all the tools and computer access
too personal, Netflix can provide this service without
needed to do the job and be greeted with an attractive
crossing the line into creepiness.
orientation setting and materials.
Surveys can help businesses understand the
A well-planned training curriculum balances the
viewpoints of their customers. In-house three-topriorities of providing anticipatory service with
seven-question mini-surveys are more likely to yield
respecting the customers protective bubble, the
a high participation rate than those that are taken
unseeable sanctuary in which the customer expects to
home. In-depth surveys will provide the most useful
not be disturbed. Inghilleri and Solomon stress five
information if designed and administered carefully. A
principles:
specialized survey service can help companies craft
1. Service starts at the moment the customer comes in
meaningful questions and build in free-form text
contact with the staff person. A warm greeting must
fields for customers to articulate novel responses.
include eye contact and a smile.

Recruit and Retain the Right People

Inghilleri and Solomon believe that personality traits

play a more important role than job-specific experience when it comes to finding the right staff to interact
with customers. Their top five desirable traits are:
1. Genuine personal warmth

2. Learn to read the subtle verbal and non-verbal messages the customer is delivering. For example, if the
customer maintains eye contact, it usually means
that they are hoping to be asked if they need assistance.

3. A team orientation

3. Adjust to the pace of the customer. Some customers

may be on a leisurely vacation while others are
more stressed for time.

4. Conscientiousness in carrying out work

4. The bubble is the sanctuary of the guest. The timing

2. An optimistic attitude

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Exceptional Service, Exceptional Profit

of attending to a customer depends more on the

customers schedule than on the servers to-do list.
5. Closing the sanctuary door--or not. If customers do
not need service, the staff person should recognize
this, thank them graciously, and leave them alone.

Leonardo Inghilleri and Micah Solomon

company outside of their assignment as well as with

their families and communities.

The Price of Value

Companies should not have to spend all of their revenue building customer loyalty, but some invest more
in resources to ensure an excellent experience. For
In order to reinforce the companys service model
example, ESF summer camps in Pennsylvania and
and support employees, managers should hold daily
Connecticut hire older and more experienced counstandup meetings focusing on a single aspect of serselors and offer a lower staff-to-camper ratio than
vice, allowing everyone to join in the discussion.
the average camp, and the investment has paid off.
Positive parental word-of-mouth
has made it possible for the comLoyalty makes customers less price sensitive, more willing
pany to expand. Other benefits of
to spend money with you, more willing to take a chance on
making those types of investments
extensions to your product line (assuming you dont abuse this include fewer turnovers among
trust in inappropriate ways), and much more immune to com- staff and clients, lower insurance
rates, and a decreased chance of
petitive entreaties.
negligence lawsuits.

A Visionary, Supportive Guide

An organizations service production capability can be

compromised before the day begins; for example, an
employee could bring his preoccupation with an issue
outside of work to the job. Leaders need to master the
tools of constant reconnection with workers in order
to keep them engaged with the organization. Inghilleri and Solomon outline what they consider to be the
five most important characteristics of a strong leader:
1. Vision: envisioning the organizations future and
direction and communicating it clearly to others.
2. Alignment: simplifying complex or abstract ideas
into a single, more accessible idea to focus the
companys efforts.
3. Standard Setting: establishing, implementing,
and enforcing consistent, effective performance
standards.
4. Support: providing workers with the training and
resources necessary to perform their tasks effectively.
5. Motivation, recognition, and reward: encouraging employees to succeed, and celebrating and
rewarding their achievements.
Moral leaders regard their employees as people, and
whenever possible include them in decision-making.
They support employees involvement in areas of the

Inghilleri and Solomon offer a few caveats. First,

companies should watch out for lily gilding, or
offering customers a fancy feature or service that may
not interest them. Second, what customers expect or
receive across the industry should also be considered,
and much can be learned from shopping the competition and surveying customers about the competition,
as long these activities are done anonymously.
Third, in considering the equation Value = Personal
Benefit minus Cost and Inconvenience, businesses
have to consider what the Personal Benefit would be to
their target market. While Wal-Mart may be all about
low prices, Nordstrom customers expect higher quality and more personal service and are willing to pay
more for it. However, some customers are sophisticated enough to recognize overpricing. Finally, nickel
and diming can turn off customers; as the successful
car dealer Carl Sewell asserts, if a friend would not
charge for a service, neither should the business.

Master the Internet Tool

With its broad reach, the Internet holds an enormous
potential for many customer-oriented enterprises.
However, those who choose this avenue of service
need to prepare to execute it correctly and in ways
that honor each customers individuality. A disgruntled customers complaints can lead to a public
relations fiasco. Therefore, Inghilleri and Solomon

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Exceptional Service, Exceptional Profit

Leonardo Inghilleri and Micah Solomon

recommend that companies make themselves easy to

reach, respond promptly to public complaints, and
authorize an appropriate leader or other staff person
to make those responses. If there are evangelists
loyal customers who will publicly endorse or defend
a companyasking them to add their positive opinion to the forum can help control damage. Trolling,
or having staff pose as customers, can backfire and
should be avoided.
Individualization can be built into a web portal in several ways. Even though most sites feature Frequently
Asked Question lists that take care of many customers efficiently, there must be an option to receive more
assistance if someones answer to Did this answer
your question? is no. To deal with differences in
attention spans and the amount of time customers
can spend, customers can access a
short copy, or brief description Being the go-to
of the product or service, with an magnifies your
option to learn more.

Different Online Paths

to Customer Loyalty
The online merchant Amazon.com is a master of what
Inghilleri and Solomon refer to as the repetition strategy; basic services are offered repeatedly to eliminate
friction from the customer experience. For example,
a customers credit card and address information is
stored, enabling one click purchasing. The order is
delivered faster because it is sent directly to UPS or
another shipper, and Amazon can recommend more
relevant products based on customer rankings. However, most other companies cannot take advantage
of Amazons ability to attract high-volume shipping
contracts with leading carriers or offer high salaries to
attract talented programmers and security experts to
stay on top of technical issues.

place for free information online is terrific. It

perceived trustworthiness. It appeals to potential customers, because giving away expert information makes
you an experttheir expert. And it brings potential customers
to your virtual doorstep.

However, with most companies

capable of supplying these selfservice features, businesses need
to build in more opportunities to distinguish themselves online, such as:
Build in options throughout the site for personal
interactions, including live chat buttons, a toll-free
service number, and an urgent email button.
Keep accessibility and sensitivity in mind when
designing the site. Choose layouts that can be understood and navigated by customers of all ages
and computer proficiencies, and add alt tags
to graphic elements, so they can be read by a text
reader.
Design the self-service elements to be engaging to
users. Depending on the product or service and
the audience, animations, sounds, or other fun
features can be built in to keep users at the site.
When automated responses are needed, craft
them to be personable and, if appropriate, funny.
Friendly and lighthearted approaches to communicating about shipments or other notifications
can leave customers with a positive impression
about a company and its employees.

A more typical business would take a different

approach. For example, a rug-cleaning company
could create an informational presence by offering
online advice, as long as it does not overtly advertise
the companys products or services. Also, the web site
could use the short copy/long copy model to introduce
visitors to the companys approach, history, technology, and staff. Computer-driven modeling can allow
potential customers to compute an estimated cost of
services without having to register with the site, and
contact the company via a web form. These courteous
approaches allow customers to interact conveniently
and without personal intrusion.

The Power of Beginnings and Endings

Research on memory has shown that what comes at the
beginning and the end is remembered the most. This
is true not only for a grocery shopping list but also for
interactions with customers. In many businesses, the
warm greetings and heartfelt farewells from the front
desk receptionist are crucial points of contact; showing recognition and appreciation for repeat customers
enhances the experience. Phone calls should not be

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Exceptional Service, Exceptional Profit

rushed. A proper telephone answering sequence

includes an appreciative greeting, a clear introduction, and a sincere offer of assistance, Inghilleri and
Solomon indicate, and ends with a personalized
farewell and a warm invitation to return.
To be more inviting to disabled customers, businesses
must consider providing more than a wheelchair ramp.
Outfitting doors with universal access handles and
making them lightly weighted can accommodate a
wider range of physical challenges. On the company
web site, captchas, letters or numbers presented in
image form that users are required to retype in an
effort to screen out hackers, should be avoided unless
necessary to facilitate access by the visually impaired,
and both phone and email customer service outlets
should be made available. Also, as customers of all
levels of ability use Google or other search engines,
results may direct them to any part of a companys
site, so each page should contain point-of-entry features such as the name of the proprietor, tour buttons,
contact information, and other appropriate links.
Before moving to a proper closing with a customer,
the final question should be, Is there anything else I
can do for you? However, a no answer should not
serve as the end of the transaction. Whenever possible or appropriate, staff should customize the closing
by using the customers name and language reflecting prior knowledge, inviting the customer to return,
offering a parting gift, and sending a follow-up note.
The warm feelings and gratitude of these final gestures should encourage customers to come back again
and again.
g

Features of the Book

Reading Time: 5-7 hours, 170 pages
Customer loyalty will help bring both strategic and
financial value to a business, regardless of size or
specialty, through both good and bad times. These
positive relationships can lead to free word-of-mouth
advertising and boost employee pride and morale.
But how can an enterprise differentiate itself from the
others in its market and provide the best service possible?

Leonardo Inghilleri and Micah Solomon

In Exceptional Service, Exceptional Profit, Leonardo

Inghilleri and Micah Solomon share the fine-tuned
loyalty-building techniques learned from their experiences in the hospitality, technology, entertainment,
and other industries. Each chapter explores a different aspect of customer contact, including anticipating
needs, addressing service failures, and handling hellos
and goodbyes. Special features highlight case studies and explore issues related to each strategy, and
appendices reproduce service standards and guidelines used by three companies in different industries.
Decision makers in any organization can read the
book cover-to-cover to understand the overall impact
of service on a business or explore specific chapters to
find tools to help with a variety of service issues.

Contents
Special Features
Acknowledgments
Foreword by Horst Schulze
Introduction: The Only Shop in the Marketplace
Chapter 1: The Engineer on the Ladder, Reaching for
the Highest Level of Service
Chapter 2: The Four Elements of Customer Satisfaction: Perfect Product, Caring Delivery, Timeliness,
and an Effective Problem Resolution Process
Chapter 3: Language Engineering: Every. Word.
Counts.
Chapter 4: Recovery! Turning Service Failures Around
Chapter 5: Keeping Track to Bring Them Back: Tracking Customer Roles, Goals, and Preferences
Chapter 6: Building Anticipation Into Your Products
and Services: Putting Processes to Work for You
Chapter 7: Your People: Selection, Orientation, Training, and Reinforcement
Chapter 8: Leadership: Guiding the Customer-Centered Organization
Chapter 9: Whats Worth it, and Whats Not? Pointers
on Value, Costs, and Pricing
Chapter 10: Building Customer Loyalty Online: Using
the Internets Power to Serve Your Customers and
Your Goals

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Exceptional Service, Exceptional Profit

Leonardo Inghilleri and Micah Solomon

Chapter 11: Hello/Goodbye: Two Crucial Moments

with a Customer
Appendixes
Appendix A: Oasis Disc Manufacturing: Customer
and Phone Interaction Guidelines and Lexicon
Excerpts
Appendix B: CARQUEST Standards of Service Excellence
Appendix C: Capella Hotels and Resorts Canon
Card: Service Standards and Operating Philosophy
Notes
Index

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Exceptional Service, Exceptional Profit

Leonardo Inghilleri and Micah Solomon

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