The Importance of Internal Relationship Marketing for External Relationship Success

Abstract

A company will not be successful on the external market if it has not first taken good care of its internal market — its employees. Internal service quality affects job satisfaction and, ultimately, customer satisfaction. There is empirical evidence for the existence of a positive relationship between the satisfaction and loyalty of boundary-spanning employees and that of customers. However, internal relationship marketing should extend to all employees, not only to those who are in contact with external customers. It is in the company’s interests to reduce both customer and employee turnover by relationship marketing. High satisfaction, commitment and perceived benefits are important for both customer and employee loyalty. “Relationship marketing is to identify and establish, maintain and enhance relationships with customers, and other stakeholders, at a profit, so that the objectives of all parties involved are met. This is done by a mutual exchange and fulfilment of promises.” Gronroos (1996b, 11)