Think of your company as a fine restaurant and your customers as diners. Each dollar of profit is a voluntary tip customers provide to recognize excellent service and valuable offerings. Just as a waiter earns a big tip by delighting guests, businesses earn healthy profits by delighting customers.
Many corporate boardrooms treat tips as though they will always come automatically. Author Ken Blanchard has famously said, "Profit is the applause you get for taking care of your customers." Profitability is an optional reward that customers offer through their satisfaction with being valued.
Companies that sacrifice service for short-term financial gains receive no tips because they provide cold soup with scowling faces. We will analyze the relationship between customer tips and profits and the consequences of poor practices on revenue streams.
