Service Breakthroughs

At the heart of breakthrough performance, the authors contend, is a sometimes intuitivebut thorough understanding of the "self-reinforcing service cycle" that replaces traditional management of "trade-offs." The "cycle" is a paradigm derived from the research results suggesting direct links between heightened customer satisfaction, increased customer retention, augmented sales and profit, improved quality and productivity, greater service value per unit of cost, improved satisfaction of service providers, increased employee retention, and further heightened customer satisfaction. With detailed examples and dramatic case studies of Mark Twain Bancshares, American Airlines, Florida Power & Light, Federal Express, McDonald's and many other companies, Heskett, Sasser, and Hart show how this self-reinforcing cycle of behavior differentiates breakthrough leaders from their "merely good" competitors.

The authors describe how breakthrough managers develop counterintuitive, even contrarian, strategic service visions. These companies define their "service concept" in terms of resultsachieved for customers rather than services performed. They target market segments by focusing onpsychographics -- how customers think and behave -- instead of demographics. And instead of viewing aservice delivery system as a facility where the service is producted and sold, breakthrough firms see it as an opportunity to enhance the quality of the service.

These profound differences in thought and action have brought spectacular results. For managers who wish to set the pace in their service industries, Service Breakthroughs will be essential reading.