In Monday’s blog, we introduced the concept of improving customer satisfaction by engaging your employees, and we used the concept of the Service-Profit Chain (Harvard Business Review July-August 2008).

The service-profit chain reinforces a critical contributor to customer satisfaction – satisfied employees.

The service-profit chain posits:
 Internal service quality is a key driver for the company
o Preparing for internal service quality improvement involves:
 Workplace redesign
 Job redesign
 Employee selection and development
 Employee rewards and recognition
 Tools for serving customers
 Internal service quality leads to employee satisfaction
o Which in results in:
 Employee retention
 Employee productivity
 Employee satisfaction leads to increased customer satisfaction
o Because the service was designed and delivered to meet customer needs (based on the learning empowered capacity of the direct provider)
 Customer satisfaction leads to customer loyalty
o Which results in:
 Retention
 Repeat business
 Referrals
 And, customer loyalty leads to revenue growth and profitability

If you start by thinking about your customer and how to provide value, then realize that it’s your employees who have the front line contact with the customer, then the conclusion is inescapable: prepare and support your employees to provide outstanding service and your customers will reward your efforts.

Tags: Quick Tips: Improve your profits through engaging your employees

This entry was posted on Thursday, March 11th, 2010 at 11:46 am and is filed under Business Growth & Entrepreneurial Strategy, Culture Building: Creating a Talent Gravity Organization. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.