According to Kotler and Bloom , it is best defined as everything that cannot be seen, tasted, heard or smelled.

The Service-Profit Chain is a theory and business model. It establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty, and 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, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to customers.

This way, strong links develop between:

Profit – Customer loyalty

Employee loyalty – Customer loyalty

Employee satisfaction – Customer satisfaction

Based on the concept of the service-profit chain, a company should establish a link between employees and customer experience on the one hand and create profit and growth on the other.

Example:

-For example, fast-food giant Taco Bell found that its stores with low workforce turnover (a key marker of employee loyalty) enjoyed double the sales and 55% higher profits than stores with high turnover.

-Sm Advantage Card

The word “PERISH” is defined as something to become destroyed or ruined.

- Businesses can only store and sell certain products or services for a brief period of time. 

 

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