Some professors at Harvard developed a concept over ten years ago called The Service Profit Chain. This concept is designed to increase your profits year after year.
The Service – Profit Chain
Employee satisfaction leads to customer satisfaction. Satisfied customers lead to revenue growth. Revenue growth leads to profit growth.
Reinvest a portion of those profits into things that will make your employees even more satisfied, and the chain never breaks.
So your profit keeps going up year after year!
Employee satisfaction
It starts with satisfying your employees. Many business owners focus on satisfying their customers first, but that’s putting the cart before the horse!
If you don’t have satisfied employees, you won’t be able to satisfy your customers. Work from the inside out, because your product or service is built around those who create or deliver it.
So if you want to increase your profits, find out what will make your employees happy!
Happy employees stick around
It’s expensive to find and train new people. New people cost you money until they get through the learning curve. They cost you money because your established employees have to help train them, so they aren’t as productive as they would be if they weren’t faced with that burden.
They know what they’re doing. They know your customers personally – their likes and dislikes. They have relationships with your customers, and most people do business with people they like.
Your employees are golden! So seek first to satisfy your employees.
3 things satisfied customers do
Satisfied customers buy more, they buy more often, and they tell others.
Look at those three again – isn’t that a great way to increase sales?
You don’t have to spend a boat-load of money chasing new customers. You focus on making your employees happy so they make your customers happy.
If you do that, your sales will grow. If you just keep your costs under control, your profits will grow. Reinvest a portion of those profits to find even more ways to satisfy your employees, and your profits will grow year-after-year.
Our bigg quote today is a paraphrase of a Walt Disney quote:
I’ll never have to worry about how my employees treat my customers.”
Take care of your employees and watch your business turn into a magic kingdom!
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Next time, we’ll discuss what to do if you made a commitment you no longer feel you can honor. Until then, here’s to your bigg success!
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