Employee Satisfaction, Customer Satisfaction And Profits


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There is concrete evidence that satisfied employees make more satisfied customers (and satisfied customers can, in turn, reinforce employees’ sense of satisfaction in their jobs). Some have even gone so far as to suggest that unless service employees are happy in their jobs, customer satisfaction will be difficult to achieve.

The underlying logic connecting employee satisfaction and loyalty to customer satisfaction and loyalty and ultimately profits is illustrated by the service profit chain shown in the figure.

The service profit chain suggest that there are critical linkages among internal service quality; employee satisfaction; productivity; the value of services provided to the customers; and ultimately customer satisfaction; retention and profits.

Service profit chain researchers are careful to point out that the model does not cause customer satisfaction; rather the two are interrelated and feed ff each other. The model does imply that companies that exhibit high levels of success on the elements of the model will be more successful and profitable than those who do not.


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