The Importance of the Service Profit Chain

EHL Insights | November 16, 2021

The Service Profit Chain establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity. The basic principle of the Service Profit Chain theory is based on the fact that customer satisfaction starts with good staffing and treatment of ones own employees. Simply put, committed employees convey their satisfaction to the customer, and hence, the chain of service profit is set in motion.   Employee satisfaction is key Understanding the theory behind the Service Profit Chain begins with accepting the premise that bottom line profitability is achieved by developing customer loyalty, a...