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

Customer Relationship Management - Essay Example But if this concept of CRM is evaluated, it can be inferred that CRM does not include one important relation that the organization has. It is its employees. Keeping 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 below: Reichheld has brilliantly explained CRM in one cycle. This cycle depicts that the key to customer loyalty is not the product or the service that is being provided, but the key is the organization’s employees. According to this circle, if the employees are satisfied with their jobs and the company, 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 company’s service and would become loyal. Loyal customers are regular customers of the company and in turn also refer the company and its product and services to other potential customers. Thus they serve as a means of word to mouth advertising. This increases the company’s profits and leads the company to growth. The company can then focus on investing the earnings in internal marketing such 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 â€Å"Many marketers view employee relations as a job solely for human resources—they see employees as tools. But employees—happy, rewarded employees—can work wonders for the company’s marketing efforts. There is no better spokesperson for a company, product, and brand than someone who is happy with