Why Loyal Employees and Customers Improve the Bottom Line

Article

Brooks, Randy   (2000, AQP)  

Journal for Quality and Participation    Vol. 23    No. 2
QICID: 20716    March 2000    pp. 40-44
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Article Abstract

The importance of the relationship between employee and customer has been repeatedly demonstrated. The service profit chain correlates strongly to customer satisfaction and loyalty and to business profits. Furthermore, customer satisfaction is highly dependent on employee satisfaction and capability, tied directly to internal service. Paying attention to conditions that enable employees to do a good job ultimately results in customer loyalty and profit. A weak link anywhere in the service profit chain undermines the entire organization. Strengthen the links by understanding what is important to customers and employees, and modify components in the organization based on that knowledge. Understand the critical role of leadership, establishing goals and values, setting the context for teamwork, and creating shared understanding in a complex organization.

Keywords

Business results,Customer loyalty,Customer retention,Customer satisfaction (CS),Employee satisfaction


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