The Food Chain Of Employee And Customer Satisfaction

The food chain of employee and customer satisfaction

In the hospitality industry, what do happy customers, productive staff, and a profitable hotel have in common? Satisfaction of course!

It’s a no-brainer that customer loyalty is the main stimulator of profit and growth. That loyalty can only come about through customer satisfaction, and this is traced back to the value of the service that guests receive. This value is created by employees that are satisfied, loyal, and productive.

Employees derive satisfaction from useful, empowering support service structures that enable them to deliver excellent service to their guests.

And the link that binds them all together? It’s unique leadership that appreciates the importance of each hotel employee and guest.

The service-profit chain

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This visualisation of the hotel service industry is called the service-profit chain, and when you take up your career in the hotel industry, you become a part of this chain. While it might sound like you’re becoming just another cog in the machine, the role you choose to occupy in the hospitality industry is incredibly important.

Even if you don’t come face-to-face with any guests, they’ll still encounter your work and it will affect the quality of their experience. Here are some things you need to know about how the service-profit chain is arranged…

Profitability and Revenue Growth:

Hotels, like other businesses, are primarily geared towards profit and growth.

Customer Loyalty and Customer Satisfaction:

It’s only possible to create and grow a profitable hotel if you have a large number of loyal customers. You’re looking for the 3R’s: Retention, Repeat business, and Referrals. In other words: Keeping your guests, welcoming them back, and giving them something positive to tell their friends! Loyal customers are those satisfied with service designed and delivered to meet their individual needs.

Retention > productivity > satisfaction

External Service Value:

This depends on the hotel’s ability to create value for the guest through a well defined service policy and delivery structure.

Employee Retention, Productivity, and Satisfaction:

Employee retention is created by inspiring loyalty in employees, not just guests. Employee productivity is made possible by creating a working environment that produces satisfied and loyal employees. Employee satisfaction makes it possible for employees to do their jobs to the best of their abilities, is the best way to achieve employee satisfaction.

Internal service quality:

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In order to engage employees and ensure satisfaction, the hotel needs to encourage the best possible internal quality. This can be done through designing an effective workplace, choosing and developing the right employees, and implementing employee rewards and recognitions.

It’s about people

Most importantly, it’s about giving employees the right tools for providing guests with service excellence.

Throughout the entire service-profit chain, it’s important to remember that running a hotel is not about just about the business of beds. It’s about people.

When you focus on the needs and concerns of those people, the hotel will thrive.