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Service Profit Chain

The service-profit chain is a relationship between profitability, customer loyalty,

and employee satisfaction, loyalty, and productivity. The links for the consulting firm in the
chain shows:
Profit and growth are stimulated primarily by customer loyalty.
Customer Loyalty is a result of customer satisfaction.
Satisfaction is direct result of services is provided to customers.
Satisfied, loyal, and productive employees mainly create value for the firm.
Employee satisfaction, in turn, results primarily from high-quality support services
and policies that enable employees to deliver results to customers.
The service-profit chain is a kind of leadership that emphasizes the importance of
each employee and customer.[1]

Hard standards in the Industry

On Time Delivery
Problems Fixed
Telephone Access

Customer Requirement
Things went right on the delivery date
Things went wrong on the delivery date
How much ratio of the problem is actually
solved by the solution
Hard sale numbers to support
How difficult or easy it was to contact the
firm and clear any doubts whenever needed
Ratio of the amount of problem solved with
the solution provided. (Hard core sales
How many times the result was delivered as
promised in the first meeting
How many times the solution exceeded the
How many times the firm themselves found
out unsaid problems in the clients company
and prposed solutions.

Soft standards in the Industry

Interpersonal Skills
Being treated with

Courtesy of

Customer Requirement
How good is employee is in taking ownership
How good firm employees are in being
courteous and understanding the problem
How good firm employees are in reacting
immediately towards a problem
How good the telephone talks are and how
many times the call was transferred
How many times the reply was through
How patient employee was in understanding
clients requirement
How good employee was in explaining the
solutions to the customer

Typical Service Offering

A. What are customer expectations of service in the industry
service in the industry?
It is expected of the industry that the working personnel has a thorough
knowledge of the kind of service that a consumer expects. And,
communication plays an important role in this task. The service
industry must communicate in such a way that it is clear to the
consumer and must also have the ability to understand the demands of
the consumer.
B. What bundles of benefits do the customers typically receive?
The consumer fundamentally expects to receive a solution that would
solve his/her problem. The solution must be for the long term and
cannot be a stop gap arrangement. At the same time, the solution must
also satisfy all the stakeholders. Confidentiality is also key for the
consumer to develop trust over the organization.
C. What is the typical service performance of the firms in the
Customer satisfaction, stakeholder satisfaction and employee
satisfaction are key in the service performance of the firms in the
industry. Innovation plays an important role in ensuring that the
previously mentioned parameters are taken adherence of.
D. Do all the Five-Service Quality dimensions apply to the firms in
this Industry? Which might be the most/least important?
Looking from the customers perspective all the 5 dimensions are
important. However the most important attribute for a consulting firm is
the assurance dimension. The competency of the employees would
decide the quality of the deliverables.
The Rater Model: Service Quality Dimensions for Consulting

E. What is the customer involvement in the service industry?

Sometimes, consumer involvement is key for aiding the
service industry in completing its tasks. The involvement can
possibly be physical, sharing of information with the service
industry or the mere presence. Customer involvement can
create an impact in organizational productivity and thereby
quality and customer satisfaction.