Case Analysis Commerce Bank
How far should commerce bank take differentiating the service experience in order to stay ahead of it competitors while still maintaining their strategy of competing on service, not price?
Service Profit Chain When analyzing Commerce Bank, delivering exceptional customer service was the factor that stood out the most. The company has put a large amount of its investment into its employees and providing a unique experience, or retailtainment, for its customers. Along with providing a unique experience for its customers, Commerce Bank also provides it’s employees, or internal customers, with a unique experience that cannot be matched by the company’s competitors. The service profit chain can be directly applied to this case, because of Commerce Banks philosophy of placing value in selling the experience and not just providing typical banking services.
The service profit chain is a model that suggests a relationship that links profitability, customer loyalty, and service value to employee satisfaction, capability, and productivity . Commerce Bank has strived to generate loyal customers that continue to return for the experience that Commerce offers them. The amount of retailtainment that is offered on Fridays plays a large role in why their customers keep coming back for more. It’s loyal customers, both external and internal, prove that profitability and growth in revenue stem from a company’s ability to capture returning customers . Fitzsimmons and Fitzsimmons believe that, “the employees that are satisfied, committed, capable, and productive members of an organization create service value”. There are six assumptions that make up the service profit chain, which are as follows: (1) employee satisfaction is driven by internal quality, (2) employee satisfaction drives retention and productivity, (3) employee retention and productivity drive service value, (4) service value drives customer satisfaction, (5) customer satisfaction