Chapter 4 Leading the Service-Profit Chain: How Leaders’ Behaviors Can Affect Customer Experience

The service-profit chain model ( Heskett, Jones, Loverman, Sasser, & Schlesinger, 1994 ) highlights the well-documented relationship between employee and customer attitudes suggesting that employees who are satisfied and engaged with their work provide better customer service resulting in higher levels of customer satisfaction and, ultimately, driving firm revenue. The authors propose an expansion of the service-profit margin identifying the leadership behaviors that create positive employee attitudes and engagement. Specifically, the authors suggest that leaders who focus on recognition, involvement, growth and development, health and safety, and teamwork ( Kelloway, Nielsen, & Dimoff, 2017 ) create a psychologically healthy workplace for customer service providers and, ultimately, an enhanced customer experience.