1. The quality of service (customer satisfaction) = service quality delivered - service expected.
2. The value of a service to a customer = service quality (both the results realized and process by which they were achieved) divided by (price and other customer costs of acquiring the service).
3. Potential profit "leverage" in providing the service = value to the customer - cost to the service provider.
4. The profitability of a service to its provider = margin x repeat usage รท investment.
It occurred to us that most service managers understand these relationships. Why then do so f