The Customer Service Elite

Special Report: Tops in Customer Service

Poll: Which Companies Are In Your Top 10?

The names on our second annual list of Customer Service Champs know how to keep front-line folks happy, make tech investments that help rather than hinder consumers and have leaders who make service a priority. See a full explanation of how we chose the winners, and to have your own say. This year, we're letting readers help to reorder the top 10 names on our list.

Click column heading once to reorder from highest to lowest. Click twice to reorder from lowest to highest.

Rank	Brand	People Grade	Process Grade	Service Index	Would Definitely Recommend Brand (%)	Will Definitely Repurchase (%)	Industry

1	USAA	A+	A+	1030.66	76.39	85.54	Insurance
This insurance and financial services provider for military personnel and their families tops our list for the second time. That doesn't come from resting on its laurels: In 2007, USAA put 12,400 "member service representatives" through 250,000 total hours of classes to reinforce basic training.
2	L.L. BEAN	A+	A+	1014.62	47.47	36.96	Online/Catalog Retail
Being private has its advantages. The outdoor-goods and clothing retailer bulked up inventories this past holiday season by 4% to 5%, taking the risk of investing extra to have the most popular products on hand. The result: Fewer customer complaints, which leads to happier call center workers. Some 45% of seasonal reps return each year.
3	FAIRMONT HOTELS & RESORTS	A+	A+	1007.68	22.81	16.62	Hotels
To familiarize its new housekeepers, bellhops, and desk clerks with guest expectations, Fairmont gives new employees a taste of luxury. During or just following orientation, new staffers have been known to have their cars valet parked, get spa treatments, or receive a free golf lesson from the hotel's pro.
4	LEXUS	A+	A+	994.51	57.74	34.52	Auto
For years, Lexus' profitable dealers have paid for some post-warranty repairs to keep loyal customers happy. But the company wants to take its outreach further. Last year, Lexus.com set up a live chat room to handle queries from possible buyers, complaints from customers, and even address auto service issues.
5	TRADER JOE'S	A	A	965.67	78.10	64.71	Supermarkets
In a current radio ad, Trader Joe's CEO Dan Bain pokes fun at other supermarkets that have flat-screen TVs. His customers can entertain themselves by "actually talking" to employees, he says. Since its founding in 1967, the chain has sought to pay workers at least equal to the average community income, or about $48,000.
6	STARBUCKS	A	A	964.03	60.40	57.28	Restaurants
Howard Schultz is back as CEO, and has made the chain's customer service his No. 1 priority. On Jan. 30 he announced changes both small (getting rid of breakfast sandwiches) and large (appointing a new "Chief Creative Officer" to focus on the customer experience).
7	JETBLUE AIRWAYS	A	A-	958.00	71.38	60.78	Airlines
After a weather-induced operational snarl last year, JetBlue bounced back onto our list, though with slightly lower scores. It launched a customer "bill of rights," doling out vouchers for delays or cancellations. Its new terminal at its JFK hub, to be completed in late 2008, will include more than 100 e-ticket kiosks, 20 security lanes, and free Wi-Fi for customers.
8	EDWARD JONES	A+	A	952.55	57.62	n/a	Brokerage
At its annual spring company meeting, Edward Jones added a new honor in 2007 for branch administrators who excelled at customer service. Based on feedback from more than 330,000 households, the company's top 300 performers met a few months later to swap strategies, which are now being taught in training.
9	LANDS' END	A+	A-	945.62	59.00	42.00	Online/Catalog Retail
The brand, which was acquired by Sears in 2002, doubled its shops in Sears stores in 2007, adding in-store monogramming and extra kiosks that give shoppers access to the Lands' End Web site. It even lets customers bring back merchandise that's 20 years old.
10	ACE HARDWARE	A	A	941.98	58.32	52.10	Home Improvement/Big Box Retail
Customers dissatisfied with the big-box home improvement experience still have the "helpful hardware folks" at Ace. By the end of 2008, every employee will carry a "skill matrix," a wallet card that lists each staff member's expertise so they can quickly connect customers to the right expert.
11	LINCOLN	A+	A+	922.34	49.96	33.45	Auto
A design dry spell for Ford's Lincoln-Mercury cars over the last decade prompted dealers to ramp up customer service. Now that Ford is again offering stylish cars, those service efforts should pay off. Ford's new marketing chief, James Farley, who ran both Lexus and Scion, says he studied Lincoln dealers in his old job.
12	THE RITZ-CARLTON	A+	A+	915.15	52.07	31.76	Hotels
To motivate the troops, this upscale hotelier shares "wow stories" at meetings each week that relay guests' tales of staff members going above and beyond the call of duty. Each "Wow" winner, such as a laundry attendant who dove into a dumpster to retrieve one young guest's stuffed gingerbread man, gets $100.
13	AMICA	A+	A+	912.74	63.47	71.88	Insurance
This 100-year-old insurance company believes loyal employees create loyal policyholders, and nearly one in four workers has been with Amica for 20 years or more. If a customer calls their local branch and the staff is busy, the call gets transferred to an agent at one of 38 other offices.
14	ENTERPRISE RENT-A-CAR	B+	B+	912.10	40.99	40.05	Rental Cars
Enterprise's parent company patented a software program last year that helps it communicate with insurance companies and body shops. As a result, customers get their cars back two days quicker, on average. To amp up loyalty in the newly acquired Alamo and National brands, Enterprise features workers in the employee newsletter who are promoted from one brand to another.
15	PUBLIX SUPER MARKETS	A-	A	908.51	60.42	57.29	Supermarkets
This privately owned grocery chain has rolled out several new programs in the past year to help customers cook faster. It's piloting a special section in a Jacksonville (Fla.) store where shoppers select one of 14 premade meals online or by phone. When they get to the store, the meal components, set aside in the proper amounts, are ready to pick up.
16	NORDSTROM	B-	B-	900.50	45.05	34.82	Department Stores
In 2007, the department store chain doubled the size of its in-house call center and will increase headcount by 500 in the next decade. Thanks to a new onscreen inventory view being rolled out in 2008, employees will be able to see how many size 6 cocktail dresses are in the store across town or in the warehouse.
17	SOUTHWEST AIRLINES	B+	B	883.98	50.73	48.11	Airlines
When Southwest made big changes to its quirky boarding process last year, giving priority to passengers who pay higher fares and no longer automatically letting families with young kids board first, upset passengers erupted on its blog. To help customers adjust, more than 1,000 employees volunteered to work shifts at airport gates.
18	WACHOVIA	B-	B	881.36	34.06	37.11	Banking
CEO Ken Thompson convenes his top 20 execs every month to review each department's customer-service scores�and to hear plans to fix any problems. A bank-wide recognition program rewards employees who deliver exceptional customer service with everything from certificates to cash drawings.
19	SMITH BARNEY	A+	B	881.31	45.67	37.97	Brokerage
To free up advisers and branch staff to interact with customers, Smith Barney set up a "field services" unit in 2007. Now when a financial advisor has a tricky question, they have one number to call instead of 35, and the 130-person unit tracks down an answer.
20	CADILLAC	A+	A+	871.53	47.27	31.09	Auto
Cadillac guarantees its customers a car to borrow while theirs is in the shop. General Motors has also begun to pay up for more repair work on cars just past their warranty. Cadillac's data system tracks repeat complaints from customers to help it identify dealerships or individual technicians who aren't fixing problems.
21	APPLE	C+	B	870.38	60.40	54.74	Computers
Apple's "genius bars" and onshore call centers help its customer service rise above its peers. While its scores dipped slightly on the University of Michigan's American Customer Satisfaction Index last year, Apple is continually taking steps to improve. It opens a new call center every two months, and is adding more personnel to its retail outlets.
22	CHICK-FIL-A	A-	B+	866.26	65.05	50.00	Restaurants
This Atlanta-based chain has redefined the fast-food experience, putting a premium on service. Chick-fil-A promotes the "family" dynamic: Its restaurants close on Sundays to give workers a day of worship. And each month, CEO Dan Cathy flies in new store managers, all of whom are vetted for a full year before being selected, and cooks dinner for them.
23	AMAZON.COM	A	A	862.06	66.67	66.07	Online/Catalog Retail
Amazon.com CEO Jeff Bezos puts improving the customer's experience ahead of near-term profits. Rather than spend on TV ads, he plows Amazon's marketing budget into free shipping on orders over $25. That resulted in a shipping loss last year, but it also helped recharge sales, which grew 42% in the recent holiday quarter while profits more than doubled.
24	JW MARRIOTT HOTELS & RESORTS	A+	A+	858.18	52.57	44.57	Hotels
To help Marriott's increasing number of Spanish-speaking employees, many of whom are housekeepers, brush up on their English, Marriott rolled out portable English language devices last year. Smaller than a laptop, the machine teaches hospitality phrases, such as directions to the elevator or the lobby.
25	TRUE VALUE	B+	B+	857.21	46.31	38.92	Home Improvement/Big Box Retail
Because half of its customers are women, this hardware retailer is remodeling many of its stores to be more female-friendly. Among the changes: moving gardening items to the front of the store and offering a wider selection of paint and bath fixtures. Average transaction size has increased by double digits in the remodeled stores.
26	HERTZ	B	B+	851.54	37.33	43.36	Rental Cars
To cater to its road warriors, Hertz is rolling out self-serve kiosks so that customers can pick up their rental in the same way they print up their airline boarding passes. The company is also working on a system using RFID technology so customers in a rush can drop off cars without having to wait for an agent.�To compete with the likes of Zipcar, Hertz introduced hourly car rentals in 2007.
27	T-MOBILE	C	C-	842.74	32.43	35.10	Wireless Providers
This repeated winner in the wireless category requires each executive to spend time in the stores during the busy holiday season. The company's sales and customer service chief, Sue Nokes, started out as a call center representative.
28	VANGUARD	A	B+	828.83	57.54	56.52	Brokerage
Mutual fund giant Vanguard Group is sticking to its strengths to keep customers happy. Known for its low-cost index funds, Vanguard last year slashed prices for equity trades and financial planning assistance for customers with at least $100,000 at the firm. It also created a dedicated service team to aid those heavy hitters when they called.
29	ERIE INSURANCE	A	B+	824.29	48.87	56.83	Insurance
Policyholders rave about the insurance company's convenient and timely billing process as well as its knowledgeable, friendly, and accessible insurance agents. Erie gets high customer satisfaction marks�well above the industry average�for its auto and homeowners' insurance products.
30	NATIONAL CITY	C+	B-	823.46	39.91	42.97	Banking
National City has improved its rate of creating loyal customers that recommend the bank to others. It's doing this in part by a rewards program that is adding members at a 12% growth rate vs. the industry's 7%. The bank also tends to have higher usage at all of its outlets�from Internet to branches�even though it has fewer outposts than rivals.
31	JAGUAR	A+	A+	813.03	49.80	30.84	Auto
Jaguar dealers tend to have a leg up on others in satisfaction scores because of its devoted customers. Still, improvements in Jaguar quality have made it easier for dealers to take care of customers with prompt service appointments, loaner cars and the like. The question: whether they can maintain standards under a new owner in 2008, as Ford is in process of selling the British brand.
32	BUICK	A+	A+	810.44	39.79	25.57	Auto
Buick has boasted good quality for years, keeping customers happy. Surveys show, however, that the brand's older buyers tend to be less discriminating.
33	WHOLE FOODS MARKET	B	A-	809.29	63.11	57.43	Supermarkets
Whole Foods hires skilled butchers, bakers, fishmongers, and cheese artisans, and then gives them an enormous amount of say in how the store is ru?team members have a "hiring vote" to choose new recruits, and annual salaries of all employees are disclosed to employees. The thinking behind this kind of transparency is that it creates a culture of trust and openness, which leads to happy employees who deliver great service.
34	BMW	A	A	809.28	53.24	35.87	Auto
BMW provides free maintenance for four years, plus it has a program of dropping meaningful customer-communications gifts and DVDs on its owners the first three years after purchase. Strong quality scores make service easier to manage for dealers, as well.
35	SATURN	A+	A+	805.55	42.80	20.74	Auto
Saturn's no-haggle selling creates a customer-friendly environment in the showroom and the service bay. The company's Web site also has customer service employees working a 24/7 chat room to answer questions from customers.
36	FRONTIER AIRLINES	B+	B	804.66	48.89	45.19	Airlines
In an age when seemingly no flight arrives on time, the Denver-based airline landed 79% of its flights on schedule in 2007, finishing fourth in recently released government figures, defeating industry giants like United, American, and Delta. Not only is the airline punctual; they guarantee that they can offer the cheapest fares. Find a cheaper Frontier flight on another Web site? They'll give you 2,500 free miles. �
37	PORSCHE	A+	A+	803.79	49.58	33.33	Auto
Porsche dealers have been upgrading dealership facilities, and they maintain strict standards of customer care. For example, loaner vehicles for Porsche owners getting their cars repaired are always Porsches�not cheap or not-so-chic rental cars.
38	INFINITI	A+	A+	801.09	42.72	27.64	Auto
Nissan's luxury brand gives its buyers longer warranties of four years and 60,000 miles, compared with three years and 36,000 miles for Nissan brand cars. The brand's Total Ownership Experience plan gives guaranteed loaner cars during repairs, free 24-hour roadside assistance and, if something goes wrong during a trip, Infiniti guarantees a car, lodging, and meals.
39	NEIMAN MARCUS	C	C+	799.47	39.91	32.43	Department Stores
Job applicants are tested for aptitude in dealing with people, and then receive 160 hours of training, so they know how to develop customer relationships and understand the designer goods the 40-store chain sells. In recent years, this luxury retailer has started to recruit at top universities to increase the caliber of its associates. ��
40	RENAISSANCE HOTELS & RESORTS	A+	A+	798.69	47.91	32.18	Hotels
Marriott International's upscale hotel brand gets above-average marks from customers compared with the competition in the upscale category for its Web site and online reservation system. Guests find the hotel's Web site to be full of useful information and easy to navigate.
41	FOUR SEASONS HOTELS AND RESORTS	A+	A	797.54	51.32	37.31	Hotels
Despite its terrific employee perks, including free meals in the hotel cafeteria and three free nights per year at any Four Seasons property, this upscale hotelier slipped this year in BusinessWeek's customer service ranking. While the percentage of guests who experienced problems at Four Seasons increased from 2% to 4% in 2007, the hotel still did significantly better than the luxury segment average of 6%.
42	WINDSTREAM COMMUNCATIONS	C-	D	795.79	27.29	40.15	Telecommunications
Windstream, the rural phone company created after Alltel spun it off from its wireless business in July, 2006, recently consolidated its wireline reps in larger customer service centers in Charlotte, N.C. and Cornelia, Ga. Though the telco still gets its share of complaints, the move helped to standardize service. Increases in training and monitoring help reps resolve issues�complaints, scheduling, troubleshooting�on the first call.
43	PONTIAC	A	A+	795.49	40.15	20.38	Auto
Like GM's other brands, Pontiac has become more lenient with caring for customers after their warranty is up. Onstar's diagnostic system tells owners when their car needs service in some models.
44	LOWE'S	B-	B+	792.71	56.74	55.19	Home Improvement/Big Box Retail
Thanks to extensive customer research, Lowe's realized long ago�and well before Home Depot and other rivals�that 80% of home-improvement decisions were made not by men, but their wives. So Lowe's made its stores cleaner and brighter and stocked it full of designer goods from the likes of Laura Ashley and Michael Graves. Lowe's also employs a higher proportion of full-time workers than Home Depot, betting that their institutional knowledge offsets the added costs.
45	HONDA	A	A+	792.27	55.52	32.31	Auto
Honda has routinely high quality ratings, which helps service departments to operate efficiently. Having the highest fuel economy in the industry burnishes customer opinion of the brand. And sales and service people are rewarded for exceeding satisfaction standards.
46	HUMMER	A	A	788.55	51.01	27.81	Auto
When GM launched the brand in 2000, it granted the franchise to some of its best dealers. As a result, customer service is in its DNA. Giving free loaners to customers keep them happy when things go wrong.
47	FORD	A	A+	788.26	41.59	28.02	Auto
The struggling carmaker has been improving quality and has extended warranties on some new models like the Focus. With market share falling, many dealers have been adding service niceties�free loaner cars, online service booking, and ride-and-pickup service�usually reserved for premium car brands in hopes of keeping owners, especially pickup truck buyers, coming back.
48	EMBASSY SUITES HOTELS	A-	A+	786.32	49.95	40.51	Hotels
Embassy Suites received best in class scores from customers for its business center. Open 24/7, each property has a minimum of two computers with high-speed Internet, photocopy machines, laser printers, and standard office software. The upscale brand owned by Hilton also offers nutrition, sleep, and exercise tips to minimize the wear and tear resulting from frequent travel.
49	W HOTELS	A	A	786.27	46.83	35.61	Hotels
The stylish hotel chain gets kudos from customers for its customized perks such as "baby me" packages for expectant parents, which include a "womb service" menu with such delicacies as pickles and ice cream. Feline lovers get baskets of cat toys and treats at check-in, and they can request litter boxes.
50	TOYOTA	A	A	785.97	51.95	31.17	Auto
With sales in the U.S. slowing, Toyota is polishing its customer service routines in fast-growing markets. In China, it has rolled out sophisticated dealership software that monitors sales peoples' every contact with customers. The best performers are then used as role models for other staffers. To ease customer concerns over counterfeit parts�a big issue in China�Toyota has installed glass windows overlooking repair shops.

*The Service Index is composed of a weighting of J.D. Power's scores for "people" and "process," plus bonus scores for brands that finish in the top 10% of our reader poll and for brands that are industry leaders. Thus, some companies with middling grades may have high service index scores because they rank highly in their industries. For a full methodology, please click here, Methodology