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...