Putting the Service †Profit Chain to Work

PUTTING THE renovation PROFIT CHAIN TO WORK Group 5 Introduction Factors that drives lucrativeness Investment in people Leadership Vision Patina of spirituality, importance of daily winability Technology birthing frontline workers Successful process companies Banc peerless, Intuit, souwest Airlines, good Master, USAA, Taco Bell, and MCI Compensation linked to performance Recruiting and training practices The answer value Chain Establishes relationships between profitability, customer loyalty, and employee mirth, loyalty and productivity Measure and precaution techniquesSupport work and policies Employee loyalty, satisfaction, productivity cheer and service guest satisfaction Customer loyalty Profit and growth The link up in the Service-Profit Chain The service profit chain is also watchd by a especial(a) leadership Examples Herbert Kelleher Southwest (Patina of spirituality), William Pollard ServiceMaster (Teacher-learner managers, servants heart), John McC oy- Banc One (Uncommon Partnership, system of support) Customer faithfulness that drives Profitability and Growth 5% emergence in customer loyalty screw produce profit increases from 25% to 85% prime(prenominal) of market share in terms of customer loyalty as important as quantity of share in the market Example Banc One Measures of Customer retention No. of services used by each customer depth of relationship level of customer satisfaction XEROX Customer satisfaction Drives Customer Loyalty Polled 480,000 customers per year Five point scale satisfaction(product and service) Relationships between the scores actual loyalty differed greatly between 5s and 4s apostles Terrorists unhappy customersValue drives Customer triumph Value related to the total costs (price and other costs incurred) Example industrial policy troupe Quick processing and payment to claims Little form _or_ system of government holder effort CAT (catastrophe) team Employee Productivity D rives Value Southwest Airlines 7th largest US domestic carrier 86% of employees unionized (total 14,000) Employees can perform several jobs Schedules, routes and phoner practices to enable speedy boarding and deplaning (15 min. 40% more pilot (70hr/month) and aircraft utilization Fare charges 60-70% lower Customer perceptions of valuate are very high without additional facilities 14,000 employees marketing research whole Employee loyalty drives productivity Study of automobile dealers gross revenue personnel More employee turn over more loss Employee Satisfaction drives Loyalty Propriety study of a property and casualty insurance company Southwest highest retention (95%) USAA Insurance and financial services providerInternal Quality drives Employee Satisfaction Working environment USAA telephone sales and service representatives development system Training ServiceMaster Attitudes of people toward one another Cleaning and aliment Importance to mundane Le adership Underlies the Chains Success integrated culture centered on service Willingness and ability to listen Examples Relating Links in the chain for focus Action Few have colligate in meaningful way Examples Property and casualty insurance company MCI Taco Bell Employee participation Periodic round table meetings, interviews Service Profit Chain Audit PROFIT AND GROWTH How do we define loyal customers? Do valuatements of customer profitability include profits from referrals? What likeness of business development expenditures and incentives directed to the retention of existing customers? Why do customers defect? Service Profit Chain Audit CUSTOMER rapture Are customer satisfaction data gathered in an objective, consistent, and hourly fashion? Where are the listening posts for obtaining customer feedback in your organization? How is cultivation concerning customer satisfaction used to solve customer problems? Service Profit Chain Audit EXTERNAL SERVICE VALUE how do you measure service value? How is information concerning customers perceptions of value shared with those responsible for plan a product or service? To what extent are measures taken of differences between customers perceptions of quality delivered and their expectations before delivery? Do our organizations efforts to improve external service quality emphasize effective recovery from service errors in addition to providing a service right the first off time?Service Profit Chain Audit Employee productivity How do you measure employee productivity? to what extent do measures of productivity identify changes in the quality as well as the quantity of service produced per unit of input? Employee loyalty How do you create employee loyalty? Employee Satisfaction Is employee satisfaction measured in ways that can be linked to uniform measures of customer satisfaction with sufficient frequency and consistency to establish trends for management use? Are employee selection criteria and methods geared to what customers as well as managers believe are important? To what extent measures of customer satisfaction, loyalty or the quality and quantity of service output used in recognizing and honor? Service Profit Chain Audit INTERNAL SERVICE theatrical role Do employees know who their customers are? Employee satisfaction with technological and personal support? LEADERSHIP To what extent Energetic, creative vs stately, conservative? Participatory, caring vs removed, elistist? Listening, coaching and article of belief? Motivating by mission vs motivating by fear? direct by means personal values vs institutionalized policies? Time played out developing and maintaining culture? RELATING MEASURES what are the most important relationships in companys service profit chain? .