Great service starts with the boss. Employees model their behavior on how you treat them, as well as how you treat your customers.

But don’t assume that your employees innately know the rules of customer service. In the book Online Customer Service for Dummies (AMACOM, 2001) the authors cite a case study in which a hotel manager actually had to spell out to a desk clerk the specifics of “friendly service”—smiling, making eye contact, using the customer’s name.

You can enhance customer service immediately by hiring the right people. They should be people-oriented problem solvers. Look for job candidates who demonstrate initiative and generate creative service ideas.

Also develop specific guidelines for service. Clearly explain what service is and how it impacts the bottom line in your business. Spell out actions you expect employees to take when greeting customers, accepting refunds and answering questions.

Give employees training in customer service. Use books, seminars, workshops, even company meetings. But before you embark on training, know where your service weaknesses are—and how you can overcome them.

For example, do you have too few employees to promptly handle customer calls? No amount of training will solve that problem. Are employees having to stock shelves instead of helping customers find the merchandise they need? Are you asking employees to fax product information, when customers would much prefer information by e-mail or on a Web site?

Those are the types of service issues only you—as the boss—can solve. But when employees can improve service, give them the power and authority to do so. Then back them up.

Here’s an example. I went to an office supply store to buy a PDA. There were five or six to choose from, but none out of the package and on display. I asked a salesperson if she would open a specific PDA package so I could get a hands-on feel for the machine. She cheerfully accommodated me. But when the store manager walked by, he scolded the salesperson for opening the package. And he did it in front of me, a customer.

The salesperson was being helpful. She was doing her best to give me personal service. Her boss yanked that power from her and left her hanging in front of a customer. Not a good policy for any size business.

“With the market the way it is, the fight to retain customers is growing desperate,” says Chris Bogan, CEO of Best Practices LLC. “Employees who are empowered to understand and react to individual customer preferences will delight clients and drive repeat business.”