Service Chain

With the advent of new modern era the management of dynamic service organizaions undersatnd the new economics of services, frontline workers and customers are the key focus areas to maximize profits in this new service paradigm through human capital investment, technological advancement which supports frontline employees, advanced recruitment and training process and benefits all together linked with the performane of employee at every level with a vision to get a competitive edge in the market to acheive their vision the top organization management also focuses on new and innovative measurement techniques to identify how the value of product and services are delivered by its employees to customer to generate customer satisfaction and loyalty which ultimately impact the profitability and growth.
The Authors use diagram to determine the service-profit chain relationship with each other. Starting from the right to left customer loyalty is the important factor to maximize the profitability and growth. A satisfied loyal customer can bring fruitful benefits to the organization in terms of repeated purchases, loyalty associated with the service or brand and the most important referrals to new or existing customers. The organization established their systems to identify the loyalty of their customers and develop the strategies to retain them because they knows that the increase in the loyal customers can create more profits and growth. Similarly, the unhappy customer can create negative impressions in the minds of the potentioal customers very quickly even in some cases they discourage the people to try or use the service or product.
Customers needs value against the total cost they pay. Organization who pay attention to generate value to its customer can get competitive advantage through high-class service delivery through its staff and tools that includes customer facilitation, quick responses or processing, help them to use service and take maximum advantage with