When I worked in the food service industry some years ago, I got a firsthand look at customer service and profits. Not to toot my own horn - but there I successfully handled a customer complaint and referred the customer to one of my bosses for continued service. Later I discovered the lady called back (after dealing with my boss) and complained about how he handled it, and then congratulated me!

I was stunned! Partly because my superior showed a lower level of service than his humble peon, mostly because she said she'd never come back into the restaurant. And she never did.

So what is customer service? The successful management of customer orders, questions, and complaints pretty much sums up customer service. Most managers think of customer service, support, care, as what happens when a customer has a complaint, but that's only part of it. Great customer service means great products, sales reps, and support too. It's a combination of many things.

And successful (or unsuccessful) customer service can make or break your profit margin. Customers, who aren't happy, won't return. They'll also tell other people about their terrible experience and the flood of people not coming to your website will spread like wildfire. Good or bad, word of mouth moves swiftly - especially today. Keep in mind; it costs a lot less to keep a customer than to gain a new one.

To avoid costly hits to your public rep, it's usually a great idea to start your customer service off right. Begin by taking orders professionally, accurately, and quickly the first time. And strive to do this every time. Customers who have to wait on the phone, even a couple minutes, wade through an ocean of automated menu options, or give their life history just to place an order will go elsewhere. Give your valued customers many ways to easily order: credit cards, check, money order, by phone, by mail - many ways and they'll likely pull out that wallet.

When it comes to post sale complaints, take the same approach to efficiency you used during the order. Make your customer support fast and effective. If a customer has a complaint about a product, they couldn't care less why it doesn't work or why you goofed up - they just want it taken care of. So by following a few steps, you can keep profitable customers when complaints come in:

* Listen to the customer. Let them rant and vent their beef with your product or service. Don't interrupt; just pay attention to what they're saying and why they're unhappy. Put yourself in their shoes and ask, "how would I feel if this happened to me - what would I do?"

* Empathize with them. Tell your unhappy customer, "I can see why you'd feel that way." Be sincere and honest. If you've listened and put yourself in their shoes, you really will see why they feel that way.

* Apologize. Offer an apology for the problem or defect. In the spirit of "going above and beyond the customer's expectations," you could offer a coupon, freebie, or future discount as part of your apology. This approach definitely makes a difference.

* Fix the problem. Take care of the problem by offering a speedy refund, give them online credit, exchange their faulty product for a new one, or do anything else you need to do to make them happy customers once again. After they're content, thank them for their business.

If your business is growing, you'll likely have less and less time to deal directly with your customers. So it's important that your employees have great customer service skills too. Run a workshop or conduct a half-a-day meeting just on the subject of customer service. Explain how and why the customer is the boss, and then teach them how to show great service every time.

Follow through with your customer policies. You should devote every single day to making the customer's experience better. All it takes is one "snappy" employee, one unhappy incident, to set your profits back considerably.

To make sure everything related to customer service is going well, routinely monitor complaints and comments. Even if a customer is unhappy during the order, it will likely end up as a complaint. And if the customer has a really good experience during the order, it will end up as a comment.

Start by using a complaint form. A place for the exact complaint, action taken to correct it, and person handling the customer should be the basics on every complaint form. Not only will you begin to see patterns in product defects, you'll also begin to see patterns in employees who are not giving 110% every time. This is a good responsibility tool.

Next, use a comment form. This form can identify who is giving the best customer service, so you can reward and encourage them and others to keep it up.

Outstanding customer service is the foundation of any business. It's the smiling faces, the warm tone in the voices, and the resolution of problems that keep customers coming back for more. A huge factor in building higher profits, even 300% or more, is your ability to treat your customers with value. If they feel like they are wanted and valued, they'll always return to open their wallets.