Idea in Brief
A Growing Risk
Companies are increasingly suffering reputational harm, lost business, and legally imposed financial penalties because of discriminatory customer-service practices.
Spotting Trouble
By having conversations with customers, analyzing data, and conducting experiments, firms may find bias in their provision of core products and services, their proffering of extra perks, and the manner in which they deliver service.
Taking Action
To curb bias among frontline service employees, companies can consider exposing them to more cultural diversity, setting standards for interactions with customers, and fostering a sense of responsibility for equitable service.
Companies go out of their way to provide exceptional customer service, and for good reason: Time and again, research has shown that it “greases the wheel” for future interactions. Zappos thus encourages service reps to build a connection with each customer, no matter how lengthy the phone conversation. At the Ritz-Carlton, any employee can spend up to $2,000 to solve a customer issue or improve a guest’s experience. Similarly, every employee at Alaska Airlines is empowered to dole out miles, money, and restaurant vouchers to resolve passengers’ complaints.
