The service-profit chain establishes relationships between profitability, customer loyalty, employee satisfaction along with productivity. Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees. Employee satisfaction arises from high-quality support services and policies that enable employees to deliver results to customers. Successful service managers pay attention to the factors that drive profitability and growth, investment in people, technology that supports front-line workers, and effective recruiting and training practices at every level. Value is created by satisfied, loyal, and productive employees. Building a profitable company is one of the most important goals for any business. The above-mentioned factors play a much bigger role in determining profitability, where the service profit chain comes in. The service profit chain contributes to determining key actions that can lead to long-term profitability. The balance and harmony between key employees and key customers are strong determining factors that regulate customer satisfaction, retention, new acquisitions, and revenue optimization. The service-profit chain model tries to link all the components required to make an organization successful that performs well in one aspect and poorly in another will eventually develop problems that affect the entire organization. The factor highlights the importance of the links between quality management, a good workforce, and exceptional service to the customer. If the vehicle hire company wants to introduce a service-profit chain process linking their profits with the employee and customer satisfaction then the vehicle hire company must emphasize the essence of the following factor of the service-profit chain process.
a. Employee Satisfaction: The first step to great loyalty is employee satisfaction. Basic satisfaction is closely connected to job context and content right is driven by the dream team cycle. Measurement of the internal quality of a business can be done through the analysis of sentiment that employees have towards their job and working environment. Hence, it is important to have state-of-the-art job-related training, and skill development workshops toward the reduction of time and effort for employee satisfaction. In the end, it improves overall internal quality. Vehicle hire companies can do some training for dealing with customers. The company also can give some referral bonuses and bonus incentives for employee satisfaction.
b. Value drives business ethics. Service experience to provide basic satisfaction one must give value to the consumer. Most remarkable thing is that customer satisfaction can only be measured by regularly interacting with the customers and capturing honest feedback from them. Reports from field sales teams, complaint letters, telephone service logs, the customer cares are very common and important listening ports for improving customer satisfaction. Positive feedback is often converted into recommendation and help in organic marketing. Many customers associate value with an emotional aspect of the purchase based on experiences. For example, if the vehicle hire company can create a well-priced product that has exceptional guarantees, can create hotline numbers, customer cares, nice hospitality, or some discount vouchers then it creates a good impression on customers. The customer might not consider the product instead values, emotions, ethics, and experiences can play vital roles.
c. Customer Satisfaction is closely linked with expectations. Customers often relate to a certain frontline employee as a representative or ‘face’ of the company. Such customer relationships combined with measures of delivery determine the total employee productivity of the organization. Employee productivity leads to an increase in the value provided to the customer which Increases the value required for businesses to move management closer to the customer and provide frontline service employees the freedom to tweak a standard service/process to suit the customer’s needs. Thus, vehicle hire companies can make catalogs related to the vehicle for a short overview of products or services. The employee must be convinced of the service guarantee and give value to customers from various dimensions including greetings, hospitality, respectful words, and so on.
d. Customer Loyalty is the number one factor driving profits and growth in the service business. A fan club or followers that adore services is a very valuable asset. The network is essential in this competitive era. Vehicle hire companies can gain customer loyalty and retention through the impact of customer satisfaction. To gain customer loyalty, the customer has to perceive value for money spent. The service-profit chain model recognizes that a customer becomes loyal through this perceived value. Since customer expectations constantly change, the organization must recognize and support these changes.
e. Employee Productivity drives Value. The workforce of a company can help to drive the company’s profits. When an organization has engaged, productive, and highly satisfied employees, the organization will have a higher chance of succeeding. A vehicle hire company can have business employees with good working knowledge of the product, the employees have a better ability to service and satisfy customers. Product knowledge comes from both experience and seniority with a company. New employees typically cannot relate to customers as effectively as employees with years of experience working for the company. Hence, vehicle hire companies can seek experienced employers in the same field. The service-profit chain model recognizes that employee retention directly impacts customer satisfaction.
f. Employee Loyalty is an essential component for retaining great service people in their positions over time and has a direct effect to deliver value. Replacing an established employee who has a strong service relationship with a potential end consumer is an effortless task. Therefore, the real cost of turnover includes the cost of recruitment and training as well as the loss of productivity and customer satisfaction. Employee recognition may often involve little more than informing individual employees or employees as a group about service improvements and individual successes. Vehicle hire companies must give priority to carrying out programs for employee loyalty. Come meet and greet sessions, parties, employees’ working environment, and incentives can be factors for employee loyalty.
g. Profit and Growth are the signs of a successful business firm that has a purpose aroused primarily by customer loyalty. Loyalty is a direct result of high customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal and productive employees. Lastly, employee satisfaction is a result of high-quality support services and policies that empower employees to serve customers well known as internal quality. Vehicle hire companies must influence and need to look at an internal quality that arises from the satisfaction of employees and customers along with effective management. Hence from all points of view, good service must be a vehicle hire company to introduce a service-profit chain process linking their profits with employee and customer satisfaction.
