Building Customer Loyalty- A Necessity for an Organization...

Building Customer Loyalty- A Necessity for an Organization A customer is an entity (individual, group, society, company, and corporate etc.) who becomes accustomed to buying from the organization. Without a strong track record of contact and repeat purchase, this entity is not the customer, but a buyer. Loyalty is the attachment a customer feels for the employees of the organization, the products and the services. A true customer is grown over time. A loyal customer is one who has the following attributes. Makes regular purchases Purchases across product and service lines Refers the organizational products to others Demonstrates immunity to the pull of the competition Customer loyalty is defined as ‘a customer which over time engage one organization to satisfy entirely, or a significant part, of its needs by using the organization’s products or services’. Customer loyalty means that the customer is loyal to the organization and only turns to a competitor in exceptional cases. The importance of customer loyalty and customer satisfaction has become increasingly apparent to an organization since the industry is facing the situation of oversupply during the recent years. This oversupply condition is bringing to the forth the necessity of building customer loyalty and to have organizational policies which are oriented towards satisfying its customers. Customers can be fickle with their loyalty, and long with their memory. It can be demonstrated by many examples that a single negative incident can ruin a long standing relationship between customer and the organization since there are several viable alternatives are available to the customer in today’s competitive market. Building of the customer loyalty requires the organization to emphasize the value of its products or services and to show that it is interested in building a relationship with the customer. The organization recognizes that...

Employees Loyalty and the Organization...

Employees Loyalty and the Organization It is often said that it is extremely important for the organizations to provide a healthy work environment, in order to attract and retain qualified, highly committed, and loyal workforce, because committed and loyal employees reinforce employees’ motivation to act in the best interest of organizations they work for. Employees’ loyalty is important for the organization because employees are a vital resource for the organization, especially since they represent a significant investment in term of locating, recruiting, training let alone salaries, welfare plans, bonuses and rewards etc. Loyalty, as a general term, signifies a person’s devotion or sentiment of attachment to a particular object, which may be another person or group of persons, an ideal, a duty, or a cause. It expresses itself in both thought and action and strives for the identification of the interests of the loyal person with those of the object. Employee loyalty can be defined as a psychological attachment or commitment to the organization and develops as a result of increased satisfaction. Satisfaction results from a process of internal evaluation, and if an employee’s expectation level is met or exceeded, then satisfaction grows. Employee loyalty then develops into a generalized emotional attitude towards the organization. In other words, the more satisfied an employee is regarding his working environment, the more likely that he develops a sense of commitment towards the organization in general. Employees’ loyalty towards organization is often referred as organizational loyalty of the employees. It is the most important factor that determines the effectiveness and efficiency of the organization. It is the one of the key elements that measures the compatibility between employees on one hand and the organization on the other hand, since if this compatibility increases, the organization achieves a...

Core Competencies

Core Competencies  Core competencies’ is deep proficiency in the organization that enables it to deliver unique values to the customers. It embodies organization’s collective learning especially coordination of the diverse production skills and the integration of the multiple technologies. ‘Core competencies’ is hard for competitors to copy or to procure. Core competencies’ creates sustainable competitive advantage for the organization and helps it to branch into a wide variety of related markets. It contributes substantially to the benefits of the organization’s products offer to the customers and hence effectively helps in the businesses of the organization. Understanding of core competencies allows the organization to invest in the strengths that differentiate it from others and set strategies that unify the entire organization. Core competencies’ is a concept in the management theory which was introduced by CK Prahalad and Gary Hamel in 1990 through their article ‘The Core Competence of the Corporation’.  Success of an organization depends on acquisition of core competencies and development of core products. The concept as explained in the article is summarized here. This concept of core competencies provides advantage to the organization. It is found in the ability of the management   to consolidate organization wide technologies and production skills into competencies that empower the individual businesses of the organization to adapt quickly to the changing opportunities. The ability of the management to identify, cultivate, and exploit the core competencies makes the growth of the organization possible. Decentralization in the organization makes it difficult to focus on core competencies and in such case there is increasing dependence on outsiders for critical skills. Core competencies’ is not necessarily about outspending rivals on research and development, sharing costs among business units and integrating vertically. These actions themselves are not sufficient in building of core competencies...