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The Ritz-Carlton's Famous $2,000 Rule | Customer Lifetime Value | Bell Desk

The Ritz-Carlton’s Famous $2,000 Rule

The Ritz-Carlton's Famous $2,000 Rule | Customer Lifetime Value | Bell Desk

How much would you empower your employees to serve your customers? The Ritz-Carlton has put a number to that very question.

If you’re one of their customers, the good news is that…

The Ritz-Carlton Will Spend $2,000 To Make You Happy

Known as one of the gold standards of customer service, the Ritz Carlton has been rightly studied and dissected over the years in an attempt to find the “secret” Ritz sauce. Entire books have been written just on the Ritz’s customer service.

One aspect of the Ritz’s service that has received a lot of coverage is the fact that the Ritz empowers its employees to spend up to $2,000 to solve customer problems without asking for a manager. Yes, you read that right, Ritz-Carlton employees can spend up to $2,000 per incident, not per year, to rescue a guest experience.

What is interesting about this famous number is that the majority of authors who mention it leave out an equally vital statistic. You see, the $2,000 is always mentioned in the context of how important employee empowerment is to great customer service — as if empowering employees to excess is the key to a profitable and successful business. Read more