With the advent of new modern era the management of dynamic service organizaions undersatnd the new economics of services, frontline workers and customers are the key focus areas to maximize profits in this new service paradigm through human capital investment, technological advancement which supports frontline employees, advanced recruitment and training process and benefits all together linked with the performane of employee at every level with a vision to get a competitive edge in the market to acheive their vision the top organization management also focuses on new and innovative measurement techniques to identify how the value of product and services are delivered by its employees to customer to generate customer satisfaction and loyalty which ultimately impact the profitability and growth.
The Authors use diagram to determine the service-profit chain relationship with each other. Starting from the right to left customer loyalty is the important factor to maximize the profitability and growth. A satisfied loyal customer can bring fruitful benefits to the organization in terms of repeated purchases, loyalty associated with the service or brand and the most important referrals to new or existing customers. The organization established their systems to identify the loyalty of their customers and develop the strategies to retain them because they knows that the increase in the loyal customers can create more profits and growth.
Similarly, the unhappy customer can create negative impressions in the minds of the potentioal customers very quickly even in some cases they discourage the people to try or use the service or product. Customers needs value against the total cost they pay. Organization who pay attention to generate value to its customer can get competitive advantage through high-class service delivery through its staff and tools that includes customer facilitation, quick responses or processing, help them to use service and take maximum advantage with less cost or burden that ultimately generate value to its customers. Employees are the key drivers who generate values to the customers. Employee productivity based on loyalty and satisfaction.
Employees satisfaction comes from compensation or benefits and working environment that will create a positive impact in the minds of its employees to stay loyal and boost the employees productivity and moral to serve the customers for their utmost level. If he employee is not satisfied with company this will not only harmful for the performance of the organization it also reduce their productivity which leads to customer dissatisfaction and reduction in revenue and profits. Internal quality contributes the most in the employees satisfaction process it can be measured through employees feeling that they have towards their job, colleagues and company.
Employee empowerment and authority also important aspect to acheive customer satisfaction with the use of management information system and to attend training sessions. Internal quality further categorized by attitudes of people that they have towards one another and the way the serve inside the organization. Top companies leaders who understand the service-profit chain try to build and maintain a corporate environment focuses on services to customers and employees. They spend most of their time with their customers to identify the service delivery by their company through its employees and interect with their employees to know the problems and suggesions for improvement. The shows willingness and ability to listen to people.