Premium Essay

Service Profit Chain

In: Business and Management

Submitted By cheesy2015
Words 411
Pages 2
How does the Service Profit Chain article help us understand what resources are needed to be successful competitors within the service sector?
The Service Profit Chain article helps us understand that customer services costs real money. The Service-Profit Chain model emphasizes the circular relationship between shareholders, customers and employees. For instance, under-staffed and under-trained employees will not deliver good quality customer service driving customers away. This article emphasized that an equivalent effort must be made in attracting, motivating and retaining employees as in retaining loyal customers, resulting in improved shareholder returns. Southwest Airlines has been successful in establishing a Service-Profit Chain model. They have been ranked among the best companies to work for. Southwest Airlines hires for attitude and understand that every employee should share the goal of creating satisfied customers. They remain a leader in their industry.
The service-profit chain model tries to link all the components required to make an organization successful.
The Service Profit Chain article helps us understand what resources are needed to be successful competitors within the service sector. The links in the chain, also known as propositions, include:
• Profit and growth are stimulated primarily by customer loyalty
• Loyalty is a direct result of customer satisfaction
• Satisfaction is largely influenced by the value of service provided to customers
• Value is created by satisfied, loyal, and productive employees
• Employee satisfaction results primarily from high-quality support services and policies that enable employees to deliver results to customers
By following the chain, we observe a cause-and-effect relationship that links the end result of profit and growth with its origin. The very beginning of the link is where the...

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