Few Brands Attain Such A High Standard Of Customer Se 358774
Few Brands Attain Such A High Standard Of Customer Service As The Ritz
Few brands attain such a high standard of customer service as the Ritz-Carlton. This luxury hotel chain began with the original Ritz-Carlton Boston, which revolutionized the way U.S. travelers experienced customer service in a hotel. It was the first of its kind to provide a private bath in each guest room, fresh flowers throughout the hotel, and an entire staff dressed in formal white tie, black tie, or morning-coat attire. In 1983, hotelier Horst Schulze and a four-person development team acquired the rights to the Ritz-Carlton name and created the concept by which it is known today, with its company-wide concentration on both the personal and the functional side of service. The five-star hotel not only provides impeccable facilities but also takes customer service extremely seriously.
The Ritz-Carlton fulfills this promise by providing impeccable training for its employees and executing its Three Steps of Service and 12 Service Values. The Three Steps of Service state that employees must use a warm and sincere greeting always using the guest’s name, anticipate and fulfill each guest’s needs, and give a warm good-bye, again using the guest’s name. Every manager carries a laminated card with the 12 Service. A Ritz-Carlton executive explained, “It’s all about people. Nobody has an emotional experience with a thing. We’re appealing to emotions." The Ritz-Carlton’s 35,000 employees in 29 countries go out of their way to create unique and memorable experiences for their guests. Not only is the company known for training its employees to provide impeccable customer service, but it also reinforces its mission and values with them on a daily basis. Each day, managers gather their employees for a 15-minute “line up” to check in, resolve any impending problems, and read and discuss what the Ritz-Carlton calls “wow stories.” These true stories, read to every employee around the world, recognize an individual employee for his or her outstanding customer service and also highlight one of the 12 Service Values. One family staying at the Ritz-Carlton, Bali, needed a particular type of egg and milk for their son who suffered from food allergies. Employees could not find the appropriate items in town, but the executive chef at the hotel remembered a store in Singapore that sold them. He contacted his mother-in-law, who purchased the items and personally flew them more than 1,000 miles to Bali for the family. This example showcased Service Value 6. In another instance, a waiter overheard a man telling his wheelchair-bound wife that it was too bad he couldn’t get her down to the beach. The waiter told the maintenance crew, and by the next day they had constructed a wooden walkway to the beach and pitched a tent at the far end where the couple had dinner.
Wow stories can also be as simple as an employee’s remembering how a guest prefers coffee and then preparing it that way without asking for the rest of his or her stay. According to Cooper, the daily wow story is “the best way to communicate what we expect from our ladies and gentlemen around the world. Every story reinforces the actions we are looking for and demonstrates how each and every person in our organization contributes to our service values.” Each employee is empowered to spend as much as $2,000 without management approval to help deliver a guest’s anticipated need or desire, supporting the company’s intention to build lifelong positive relationships with each customer. Ritz-Carlton measures the success of its customer service efforts through Gallup phone interviews, which ask both functional and emotional questions. Functional questions include: “How was the meal?” or “Was your bedroom clean?” while emotional questions reveal the customer’s sense of well-being. The hotel uses these findings as well as day-to-day experiences to continually enhance and improve the experience for its guests. In less than three decades, Ritz-Carlton has grown from 1 U.S. location to 87 in 29 countries; the company plans to expand further throughout Europe, Africa, Asia, the Middle East, and the Americas. It has also earned two Malcolm Baldrige Quality Awards—the only company ever to win the prestigious award twice.
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Applying Internal Marketing Concepts at Ritz-Carlton
The Ritz-Carlton exemplifies the effective application of internal marketing principles by deeply embedding its service ethos into every facet of its organizational culture. Internal marketing, as outlined in Chapter 10 of contemporary marketing literature, emphasizes aligning employees with the company’s brand values to ensure delivery of superior customer service (Kotler & Keller, 2016). Ritz-Carlton demonstrates this through rigorous employee training, emphasizing not only technical service skills but also emotional engagement, reflecting its focus on personalized experience. The daily "line-up" meetings serve as a platform to reinforce core values, share "wow stories," and create a shared purpose among employees across locations worldwide, thereby fostering internal cohesion and commitment (Berry, 1981). The empowerment of employees, such as allocating up to $2,000 to resolve guest issues independently, exemplifies internal marketing that motivates staff to own the customer experience fully. This approach aligns internal stakeholder goals with external customer expectations, ensuring that every employee internalizes the brand promise of exceptional service. Effective internal communication, continuous reinforcement of values, and empowering frontline staff are key internal marketing strategies Ritz-Carlton employs, resulting in high employee engagement and consistent service delivery.
Market Segments Ideal for Ritz-Carlton
The ideal market segments for Ritz-Carlton are primarily affluent travelers seeking luxury, exclusivity, and personalized service. These include high-net-worth individuals, corporate executives, and premium vacationers who value premium amenities, privacy, and superior customer care. The case details suggest that Ritz-Carlton’s tailored service, such as fulfilling specialized dietary needs or constructing accessible pathways, appeals most to consumers who expect a bespoke experience and are willing to pay a premium for it (Schmitt, 2010). Additionally, luxury travelers from emerging markets, such as Asia and the Middle East, seeking the global prestige associated with the Ritz-Carlton brand, constitute a growing segment. Business travelers and event organizers also represent a significant segment, as the hotel offers refined meeting facilities and services aligned with corporate needs. Furthermore, destination-specific segments, like families or honeymooners seeking unique experiences, benefit from the hotel’s dedicated service culture. Overall, Ritz-Carlton’s target market comprises high-income consumers who prioritize quality, exclusivity, and emotional connection, making it suitable for customers willing to invest in a luxurious and tailored hospitality experience.
The Role of "Wow Stories" in Maintaining Top-Quality Customer Service
"Wow stories" play a critical role in sustaining Ritz-Carlton’s top-tier service standards by serving as both motivational tools and experiential exemplars for employees. These stories encapsulate exceptional service moments that exceed guest expectations, reinforcing the hotel's service culture and values (Gallo, 2008). They serve as real-life proof of how employees can create memorable moments, which in turn reinforce emotional bonds with guests, thus elevating the overall customer experience (Prahalad & Ramaswamy, 2004). By sharing these narratives daily, Ritz-Carlton cultivates a service-oriented mindset, inspiring employees to emulate and innovate upon such behaviors. The storytelling acts as a form of social validation, recognizing employee efforts and embedding the "wow" factor into the organizational ethos. Moreover, these stories facilitate continuous learning and improvement, propelling the company to sustain high standards amid operational challenges. The emotional resonance of "wow stories" helps maintain the motivation and engagement of staff, ensuring that the delivery of personalized, memorable experiences remains consistent. Consequently, "wow stories" are instrumental in preserving Ritz-Carlton’s reputation for excellence, ensuring that every guest encounter can potentially become a "wow" moment.
Conclusion
The Ritz-Carlton’s success rests significantly on its internal marketing strategies, targeted market segments, and the cultivation of "wow stories." By aligning its internal culture with its external service promises, the hotel fosters highly motivated, engaged employees capable of delivering personalized service that meets the demands of its affluent clientele. Its focus on appealing to luxury consumers who seek exclusivity, quality, and emotional connection underscores its market positioning. Moreover, the daily sharing of "wow stories" sustains a service culture rooted in exceptional customer experiences, reinforcing the brand’s elite status. As the hotel chain continues to expand globally, maintaining these core internal practices and customer-oriented storytelling will be essential for preserving its reputation and competitive advantage in the luxury hospitality industry.
References
Berry, L. L. (1981). The Employee as Customer and Partner. Harvard Business Review, 59(2), 105-111.
Gallo, C. (2008). Employee Motivation the Ritz-Carlton Way. BusinessWeek. Retrieved from https://www.businessweek.com
Keller, K. L., & Kotler, P. (2016). Marketing Management (15th ed.). Pearson.
Prahalad, C. K., & Ramaswamy, V. (2004). Co-creating Unique Value with Customers. Strategy & Leadership, 32(3), 4-9.
Schmitt, B. (2010). Customer Experience Management: A Revolutionary Approach to Connecting with Your Customers. Wiley.
Reiss, R. (2009). How Ritz Carlton Stays at Top. Forbes. Retrieved from https://www.forbes.com
Carmine Gallo. (2007-2008). Multiple articles on employee motivation and service quality. BusinessWeek.
Robison, J. (2008). How the Ritz-Carlton Manages the Mystique. Gallup Management Journal.
Kearsley, K. (2013). Taking a Cue from Ritz-Carlton’s Customer Service. Wall Street Journal.
Solomon, M. (2013). How Four Seasons and Ritz-Carlton Empower Employees. Forbes.