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The Hospitality or Retail Industry

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&nbsp.It is probably more difficult for competitors to duplicate high-performance human assets than any other corporate resource. In both the industry, the way service is delivered by this human resource can be important source of differentiation as well as a competitive advantage. In addition, the strength of the customer/frontline staff relationship is often an important driver of customer loyalty (Bove &amp. Johnson, 2001). Service staff plays a key role in anticipating customers needs, customizing the service delivery, and building personalized relationships with customers with ultimately lead to customer loyalty. Highly motivated employees remain at the core of service excellence and becoming a key variable for creating and maintaining competitive positioning and advantage (Hemp, 2002). The important impact of service staff on customer loyalty was integrated and formalized by James Heskett and his colleagues (1994) in their research on the service-profit chain. The authors demonstrate the chain of relationships between.
Unlike manufacturing, all the service staff in the hospitality or retail industry remains in continuous contact with customers and Schneider &amp. Bowen (1993) shows that employee satisfaction and customer satisfaction are highly correlated.
Organizations have opted various HR tools and practices over the year to attain success. Attractive compensation packages are used to attract good quality staff. Broadened job designs are accompanied by training and empowerment practices that allow frontline staff to control quality. With more focussed recruitment, more intensive training, and better wages, employees are likely to be happier in their work and to provide higher quality, customer pleasing service. Regular customers also appreciated the continuity in service relations resulting in lower&nbsp.turnover and so are more likely to remain loyal. Profit margin tends to be higher and the organization is free to focus its marketing efforts on reinforcing customer loyalty through customer retention strategies.