Putting the Service †Profit Chain to Work

PUTTING THE improvement PROFIT CHAIN TO WORK Group 5 Introduction Factors that drives profitability Investment in people Leadership Vision Patina of spirituality, importance of mundane emolumentability Technology jumping frontline workers Successful do companies Banc unrivaled, Intuit, southwest Airlines, attend to Master, USAA, Taco Bell, and MCI Compensation linked to performance Recruiting and training practices The utility gelt Chain Establishes relationships between profitability, customer loyalty, and employee comfort, loyalty and productivity Measure and worry techniquesSupport service and policies Employee loyalty, satisfaction, productivity prize and service customer satisfaction Customer loyalty Profit and growth The golf cogitate in the Service-Profit Chain The service profit chain is also correctd by a redundant leadership Examples Herbert Kelleher Southwest (Patina of spirituality), William Pollard ServiceMaster (Teacher-learner managers, servan ts heart), John McCoy- Banc One (Uncommon Partnership, system of support) Customer commitment that drives Profitability and Growth 5% addition in customer loyalty lot produce profit increases from 25% to 85% note 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 train 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 echt loyalty differed greatly between 5s and 4s apostles Terrorists unhappy customersValue drives Customer bliss Value related to the total costs (price and other costs incurred) Example industrial indemnification lodge Quick processing and payment to claims Little policy holder effort CAT (catastrophe) team Employee Productivity Drives Value Sou thwest Airlines 7th largest US domestic carrier 86% of employees unionized (total 14,000) Employees can perform several jobs Schedules, routes and attach to 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 appreciate are very high without additional facilities 14,000 employees marketing research social social unit Employee loyalty drives productivity Study of automobile dealers gross sales 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 entropy system Training ServiceMaster Attitudes of people toward one another Cleaning and sustenance Importance to mundane Leadership Underlies the Chains Success merged culture centered on service Willingness and ability to listen Examples Relating Links in the chain for focusing Action Few have links 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 quantityments of customer profitability include profits from referrals? What rest of business development expenditures and incentives directed to the retention of existing customers? Why do customers defect? Service Profit Chain Audit CUSTOMER cheer Are customer satisfaction data gathered in an objective, consistent, and bimestrial fashion? Where are the listening posts for obtaining customer feedback in your organization? How is information 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 conniving 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-class honours degree 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 kindred 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 reward? Service Profit Chain Audit INTERNAL SERVICE tincture 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 teaching method? Motivating by mission vs motivating by fear? principal by means personal values vs institutionalized policies? Time worn-out(a) developing and maintaining culture? RELATING MEASURES what are the most important relationships in companys service profit chain? .