There is no magic to a successful business. If you care to look deeply, you can figure out what works and why. The authors James L. Heskett and others wrote papers and a book on what they called the Service-Profit Chain.

Putting it simply “[t]he service-profit chain establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity.” That is, “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.”1

Apart from their use of the term services where we now prefer to use the more inclusive term solution, as well as the more recent take on customer satisfaction that is both what people say and how they feel, nothing much has changed. And furthermore, our research has uncovered that many other authors are saying similar things.

1Putting the Service-Profit Chain to Work, James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and Leonard A. Schlesinger, HBR, July-August 2008.