If you want to be successful, no matter your business or your industry, you would do well to follow the leader, to emulate those people and organizations that make customer service a priority. So says John Tschohl, founder and president of the Service Quality Institute in Minneapolis, Minnesota, and author of several books on customer service, including his latest, Loyal for Life: How to Take Unhappy Customers from Hell to Heaven in 60 Seconds or Less.

Service leaders, Tschohl says, understand that they are not in the banking, retail, or manufacturing business; they are in the customer service business. And they drive their businesses by focusing on these six principles:

1.    They understand that service is a strategy.
2.    They continually look for policies and procedures that must be changed or eliminated to make their organizations more customer friendly.
3.    They hire the right people—and they treat them well.
4.    They empower their employees to make decisions in order to serve their customers.
5.    They train each employee in the art of customer service—and they do so at least every six months.
6.    They measure the impact and results of their customer service efforts.

Using those six principles, Tschohl cites six companies that set the standard for customer service. "Any organization anywhere in the world would do well to emulate these companies," he says. "They have made the customer king and are reaping the rewards of providing superior service."

Commerce Bank is the most customer-focused bank in the United States, Tschohl says. A $35 billion organization with deposits that are growing by 39 percent annually, Commerce Bank has outperformed Wal-Mart, the Home Depot, Berkshire Hathaway, and Microsoft in annual returns. When it opened its first four banks in Manhattan, it interviewed 3,400 people and hired just 42 of them. Today it has 13,000 employees.

"The strategy is to hire outgoing people pleasers, then we train, train, and train," says Vernon Hill, Commerce Bank's founder and chairman of the board. The bank spends millions of dollars each year training all of its employees in customer service. As an example of that service, Tschohl says, the bank's telephones are answered 24 hours a day, seven days a week by employees—not voice mail with endless options—and usually by the second ring. Don't believe it? Call the bank at (888) 751-9000.

Not surprisingly, Tschohl also puts Amazon.com on his list of customer service role models. The company has mastered speed, technology, and price—all built around service. In 1995, Amazon had sales of $511,000. Thanks to its focus on service, as of January 31, 2005, the company's annual revenue had hit $6.92 billion, a 31 percent increase over the previous year—and its profits were a whopping $588 million.

Dell is another company that has made customer service a focus. Company founder Michael Dell sums up his business philosophy this way: "Under promise and over deliver." The company does just that and, as a result, is the largest provider of PCs in the world.

No one would argue the success that Wal-Mart has had over the years. The numbers are more than a little impressive. The company's fiscal 2005 profits were $10.3 billion on revenues of  $288 billion, a 12.5 percent increase over the previous year. "No retailer in the world has done a better job of understanding customer service than Wal-Mart," Tschohl says. The company does a better job of motivating its employees than any other retailer in the world. In every country in which Wal-Mart operates, its employees are the least paid but probably the best treated."

When it comes to customer service, The Home Depot is an undisputed leader. The second largest retailer in the United States, it is the world's largest home improvement retailer. The company, which has 325,000 employees, had $5 billion in profits on $73 billion in sales during fiscal 2005. "The Home Depot understands that it is in the service business and has empowered its employees to do whatever is necessary to serve the customer," Tschohl says.

Some ten years ago, Northeast Delta Dental had a 20 percent market share in New Hampshire, Vermont, and Maine. Today, in those states, the company enjoys market shares of 60, 47, and 43 percent respectively.

"Northeast Delta Dental had 200,000 members during its first year in business and today has 700,000 members," Tschohl says. "The company's revenues in 1995 were $30 million; by the end of 2004, revenues had reached $190 million."

Northeast Delta Dental is so sure of its focus on customer service and its employees' ability to deliver that service that is has instituted a service guarantee that covers several functions, including accurate and quick turnaround of member identity cards. The company guarantees that those cards will be mailed to members within 15 calendar days after the enrollment form is completed or it will pay that member $50.

"In the face of global competition, businesses cannot succeed if they focus solely on price and product," Tschohl says.

"Customer service is the distinguishing factor. If you focus on doing whatever it takes to satisfy the customer, you will have a competitive edge that will drive your business."

John Tschohl is an international service strategist and speaker. Described by Time and Entrepreneur magazines as a customer service guru, he has written several books on customer service, including The Customer is Boss; Loyal for Life; e-Service; Achieving Excellence Through Customer Service; and Ca$hing In: Make More Money, Get a Promotion, Love Your Job. John also has developed more than 26 customer service training programs that have been distributed and presented
throughout the world. His bimonthly strategic newsletter is available online at no charge.