All wise business owners know that customers are the foundation of their business; without customers, there is no business. Why, then, are so many unhappy consumers frustrated with the state of customer relations in so many businesses? What distinguishes a good customer service experience from a bad one? While there are many answers to these questions, at the root of it all, communication is- again- the key.

The fact is, customer service representatives (CSRs) who know how to listen and respond to customers are far more likely to resolve issues and cultivate happy, loyal customers than those who are more interested in talking than listening, and more interested being "right" than in resolving issues.

How many times has a customer called your company with a problem, only to be cut off in mid-sentence by a CSR who thinks that educating the customer on "company policy" is more important than listening to his concerns? Or how about the CSR who is quick to tell the customer what she'll "have to" do? From a customer's perspective, few things are more frustrating than customer service encounters like these.

When you talk to customers, relax. You're there to assist customers, not compete with them. Don't get caught in a duel of egos. Solve the problem.

1. Listen. In order to assist the customer, you must understand the problem. You can't hear what the customer is saying if you are talking. Before you say a word, listen carefully to what the customer has to say.

2. If the customer is irate, do not escalate. Remember that the customer is frustrated with a product or service, and not with you. Keep your tone calm and soothing, don't interrupt, and above all (it bears repeating ) - listen.

2. Never end a sentence with "I don't know." There's nothing wrong with admitting that you don't have an immediate answer or solution, but don't leave it at that. Assure the customer that you will find the answer, or direct him to someone who can help.

3. Never say "you'll have to . . ." This is a hot-button phrase for many customers. Think about it -- how do you respond when someone tells you you'll have to do something? Instead of saying, "You'll have to call accounting," try something like, "Our accounting department can help you with that - may I transfer you now?"

4. Before you put a customer on hold or transfer her to someone else, always ask if it's okay- and listen for her response. "May I put you on hold while I find a technician to help you?" If the customer objects, offer to take her number and have someone call her - and then follow through.

5. Above all, remember - the customer may not always be right, but he is your bread and butter. Your job is to make that customer happy. Get creative. Spouting corporate scripts rarely solves a problem, but your proactive response can make a world of difference. And if you must deliver bad news, try to sweeten it to the best of your ability: "I'm sorry, I won't be able to send a repair technician to your home until next Tuesday, but I can credit your account for one week of service for your trouble. Will that be satisfactory?"

Using simple tips like these, you can soothe agitated customers and defuse conflict. Your customer will be happy, your business will benefit, you will enjoy lower stress levels and the satisfaction of a job well done.