Summary

For any business to be successful and grow it can never be based purely on making a profit, it also needs to be able to provide what it is that customers want and need. Customers look for both great products and excellent service. If their experience does not meet their expectations, they may not tell you, but they will go elsewhere.

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The Customer Service Chain

This business model was developed by a group of researchers from Harvard University in the nineties. Originally published in 1994, it offers customer focused companies as much today as it did back then. It shows how a company’s profit, growth and customer loyalty are impacted by the people who work there.

Quite simply, it looks at how if you are happy in your work, you will do a better job, which in turn means you are more likely to make our customers happy. It puts ‘hard’ values on ‘soft’ measures.

The Customer Service Chain is made up of the following links in this order:

  1. Internal Service Quality

    How we recruit, train, support and recognise our teams
  1. Employee Satisfaction

    How happy our teams are in their jobs
  1. Employee Retention

    How our teams will stay in a job if they are happy
  1. Employee Productivity

    How well our teams perform if they are happy
  1. External Services

    The customer experience our teams offer
  1. Customer Satisfaction

    How well our teams meet our customers’ needs
  1. Customer Loyalty

    How happy customers remain, repeat purchase and refer others
  1. Revenue Growth

    How happy customers will buy more
  1. Profitability

    How happy customers can sometimes pay more or cost less to ‘service’
  1. Shareholder & Client Value

    How happy teams and customers add value to our company and our clients’ companies

Exercise

This is a visual exercise that highlights the importance of the links between good management, engaged people, and a good working environment to deliver exceptional customer experience.

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