The names of 75% of the Fortune 500 companies have changed in the last quarter century and the Department of Labor tells us that three out of every five new businesses fail within the first three years. Have organizations, large and small forgotten the importance of customer service?

All products and services, including customer service, come from, are developed by and are delivered by people. Organizations such as Nordstrom and Starbucks realize this and take a great deal of time in both recruiting and training talented, committed employees in order to provide a continuous outstanding customer service experience.

Nordstrom’s company’s philosophy has remained unchanged since its founding as a single shoe store in Seattle by John W. Nordstrom in 1901. “Offer the customer the best possible service, selection, quality and value.” According to Robert Spector and Patrick McCarthy, authors of The Nordstrom Way; “Employees are instructed to always make a decision that favors the customer before the company.”

Spector and McCarthy point out that Nordstrom would rather hire nice people and teach them to sell, than hire salespeople and teach them to be nice and that keeping good employees with the company is just as important as attracting new ones. A typical comment at a retirement party is, “I’ve worked here for X number of years, and I want to tell you new people: This is a great company to work for. I’ve always felt like I was treated as family here at the company.”

Working is more than just pouring coffee at Starbucks according to Brook Locascio’s recent article in the Tea and Coffee Journal. “I learned that it is not only creating the ultimate coffee beverage, but also providing excellent service that ensures customers leave the store completely satisfied and eager to return…maybe next time with friends or family.”

Locascio, a Five-year Starbucks veteran continued, “Starbucks Coffee Company demands Five-Star customer service from all partners (employees), and it is this service that separates Starbucks from other coffee shops. The goal is to provide for all customers a ‘third place’ environment - a place of relaxation that is away from home and work. While many complain of the expensive java prices, it is this environment that keeps customers coming back for more.”

Nordstrom and Starbucks along with other of Business Week’s “The customer service elite” winners like T-Mobile, Apple, FedEX , Washington Mutual, Raymond James Financial and JW Marriott Hotels and Resorts demand Five-Star customer service from all employees and realize that it’s this service that separates them from competitors. They not only aim to please the customers, but also provide employees with a safe, comfortable, profitable environment.

Every act is a customer service act. Everyone is involved in serving the customer. It’s not just the product or service that creates satisfaction. It starts with the idea for a product or service that will serve the customer in a superior way. Next, the product or service has to be carefully designed, and finally it must be consistently delivered.

The suppliers and outside vendors of Nordstrom and Starbucks contribute to outstanding customer service. As John W. Nordstrom stated in 1901, part of outstanding customer service requires not only offering the best service but in addition the best possible selection, quality and value. Even your telephone and internet provider have an impact on customer service.

John W. Nordstrom understood that only the customer can define for themselves what they consider the “best service, best possible selection, quality and value.” Herein lays a great opportunity and the reason why Wal-Mart as well as Nordstrom can each dominate their category. The same can be said of Starbucks and Dunkin’ Donuts.

The very fact that there’s a need for a customer service department indicates that there has been a breakdown in the process (idea,design,delivery) outlined above. The busier your customer service department is… the greater the process breakdown.

If the idea offers a superior solution to a customer problem and the design and delivery are flawless…the “Maytag Repairman” syndrome (sitting around with nothing to do) would be the only thing happening in your customer service department.

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