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Danny Meyer, CEO of the Union Square Hospitality Group - an 11 restaurant, $50 million a year New York City operation - has written a book entitled "Setting the Table: The Transforming Power of Hospitality in Business." The Wall Street Journal recently (October 3) interviewed Meyer, who had a lot to say about the principles of hospitality and generosity as catalysts for success in the service industry.

Meyer stresses that success is hinged on operators being focused on exceeding the expectations of customers. The key to success, says Meyer, is personnel who are engaged in their work and are willing to take initiative to go above and beyond in the name of service. This takes a committment
and investment of time and money by operators in their employees. According to Meyer, when employees are "jazzed" about their jobs, that's when service-based operations such as hotels, restaurants, and retailers earn repeat business. Meyer related the following experience of one of his customers as an example of exemplary service by motivated employees: "I think business in general is a series of problems to solve. I describe one of those incidents in the book, where somebody came in completely bent out of shape. She was late for her lunch. She left both her cellphone and her wallet in a taxi. So the first thing we did was to let her know don't worry about paying her bill. And we didn't even know her. I mean what's the worst that could happen? She is going to do us out of a $100 lunch for two? Big deal. So we then asked her for her [cell] number, and we had a manager in the middle of a busy lunch calling. After about a half hour or so, a taxi driver picks up. Our manager picked up the cellphone and the wallet and had them ready by the time the person's check arrived. And whatever that whole thing cost us, I guarantee you we made back in positive PR many, many times over."

That's the epitome of customer service.

Meyer's five tips for keeping customers happy:

1. Never Assume: Don't automatically assume customers want certain things in particular situations, like champange to celebrate their anniversaries. Ask and determine what they really want - they might want martinis instead. You can taylor what this rule would mean in your organization.
2. Turn Mistakes into an Advantage: Go the extra mile to fix something, whether it's your fault or not. Be generous in your response. Impress your customer.
3. Ask Customers Questions: People will take exactly as much interest in your business as they believe you are taking in theirs.
4. Don't Play Favorites: Don't ignore one customer in favor of another. Exceed the average person's expectations. That's how you get repeat business.
5. Put Staff First: Perhaps the most important rule. The customer isn't always right. You can only earn repeat business if employees feel "jazzed" about coming to work.

In addition to building the brand and creating customer loyalty, a committment to extradordinary service may pay dividends in the area of reducing/eliminating exposure created by claims. Where your organization has demonstrated a true interest in and concern for its customers, as well as a willingness to go the extra mile to make things right, these efforts arguably translate into the prospect of customers thinking twice to bringing suit when claims arise. Lawsuits - especially those against service industry entities - are often started because of a customer's anger at the organization. This anger is often the product of the customer believing the organization is indifferent to his or her complaints and welfare following an incident, such as a slip and fall or a problem with a hotel room. Exemplary customer service when things go wrong may shortcircuit these feelings of anger and keep the claim from erupting into litigation. Where litigation does incur, an organization with a demonstrated committment to customer service can make a favorable impression on jurors. It's hard for a jury to get mad (i.e., ring the defendant up on a damages calculation) when the defendants are legitimately good guys.

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