What is a common outcome of effective customer relationship management?

Improved customer satisfaction and loyalty is a common outcome of effective customer relationship management (CRM). When a business implements CRM strategies, it focuses on understanding customer needs and preferences, which allows for more personalized interactions. This can lead to enhanced communication and service quality, fostering a deeper emotional connection with customers.

As customers feel valued and understood, they are more likely to remain loyal to the brand, resulting in repeat business and positive word-of-mouth referrals. Effective CRM also enables businesses to address issues promptly, further reinforcing customer trust and satisfaction. Ultimately, a loyal customer base is essential for long-term profitability and success in any business.

The other options, such as higher employee turnover rates, increased supply chain costs, and reduced product offerings, do not align with effective CRM practices, which aim to enhance both customer and employee experiences, optimize operational costs, and often lead to an enriched product assortment based on customer feedback.