Customer Relationship Management Essay Example | Topics and Well Written Essays - 2000 words

Customer Relationship Management - Essay Example further if this concept of CRM is evaluated, it can be inferred that CRM does not include one important relation that the face has. It is its employees. charge the above argument in view, CRM has being given a new definition by Reichheld. He has given a concept of Virtuous Circle sometimes colloquially referred to as closing the loop. A diagrammatic representation of this circle is given belowReichheld has brilliantly explained CRM in one cycle. This cycle depicts that the primaeval to customer loyalty is not the product or the service that is being provided, but the key is the organizations employees. According to this circle, if the employees are satisfied with their jobs and the conjunction, they can be easily retained by the managers. This would in return increase employee productivity meaning they would give better service to the customers. The customer will be satisfied with the companys service and would become loyal. Loyal c ustomers are regular customers of the company and in turn also refer the company and its product and services to other potential customers. Thus they religious service as a means of word to mouth advertising. This increases the companys profits and leads the company to growth. The company can then focus on investing the earnings in internal marketing much(prenominal) as rewards, benefits and compensations which would impact the employees. Besides this, employee empowerment, training and development all contribute to employee satisfaction. Thus this cycle goes on and on.John Moore has quoted in his blog Reichheld on Employee Loyalty that Many marketers view employee relations as a job solely for human resourcesthey see employees as tools. But employeeshappy, rewarded employeescan work wonders for the companys marketing efforts. There is no better spokesperson for a company, product, and brand than someone who is happy with