Fresh Cup Magazine, providing specialty coffee and tea professionals with unique insight into the trends, ideas, products and people that shape their world.
Issue link: http://freshcup.epubxp.com/i/59523
CAFÉ FINANCE BY CHRIS LEGLER Be a customer service business that happens to sell coffee hat do Nordstrom, Southwest Airlines and Trader Joe's have in common? They're all known for their unique takes on strong customer service. But along with that is another important fact: They are all among the most financially successful companies within each of their respec- tive industries. They prove that good customer service—a trait that seems like it should be taken for granted—often makes or breaks a company. What's more, as online chatter and social media become increasingly prevalent, the effects of customer service (both good and bad) are being felt on businesses at a faster rate than ever before. Web check-ins such as Yelp, Facebook and Urbanspoon are powered by opinions of actual customers, and those viewpoints show up in front of other potential customers sometimes before the reviewer has even left the café. Every person who orders now has the potential to touch hundreds, if not thousands, of others. Clearly, the stakes are high. SOME SHINING EXAMPLES Before we get into the specific financials that prove the power of good customer service at an independent café, let's look at how it has pushed forward a pair of nationally known brands. Nordstrom is a company that excels at customer service. 28 Fresh Cup Magazine freshcup.com Employees at the department store are famous for going out of their way to please customers, and Nordstrom spends a lot of resources on developing its employees. So what are the policies that Nordstrom puts in place to insure it offers the best service in the industry? Interestingly enough, the emphasis is on having employees think for themselves. For many years, the Nordstrom employee "handbook" consisted of a simple card that read: Welcome to Nordstrom. We're glad to have you with our company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them. Nordstrom Rules: Rule #1: Use best judgment in all situations. There will be no additional rules. Please feel free to ask your depart- ment manager, store manager or division general manager any question at any time. This approach has paid big dividends in recent years, as the ever-competitive retail world has become even more so thanks to the recession. Between 2008 and February 2012, Nordstrom's stock rose from $6.61 per share to $51.10 per share. The company has almost doubled in value every year for four years, increasing sales 4.7 percent per year for five years during one of the largest economic downturns in recent history. An Associated Press story on Nordstrom's most recent revenue continued on page 30