In chemistry, a solution is defined as a homogeneous mixture composed of two or more substances. The same can be said in business and the right combination of substances or in this case resources, is often difficult to come by.

Naturally, every business will face challenges in both internal and external environments at some point, and how these challenges are handled are often the true test of endurance. In last month’s newsletter, Hbc conducted a survey to uncover the points of pain or challenges faced by readers in their organization. Sustaining growth and customer loyalty and retention, as well as employee motivation, were some of the greatest challenges faced with 50% of the respondents agreeing that this was their greatest point of pain. Others such as consistent execution of strategy and internal budgets were also noted.

It comes as no surprise that customer loyalty and retention ranks high on the list of challenges given that in today’s global, competitive marketplace, choice is abundant and customers have more control. Consequently, businesses must be intelligent about their markets and customers, and more aggressive than ever in their efforts to retain them. A personal touch almost always reflects positively among consumers and thus leads to greater customer retention. While a smaller business has the capabilities to offer a more hands on approach with their consumers, larger businesses are also finding ways of incorporating personalization into their business and marketing initiatives.(1) Direct marketing in particular certainly lends itself to this especially since the advent of variable printing, as do many loyalty programs which reward customers for their continued patronage. Giving consumers a personal experience will resonate strongly with them and garner repeat business.

While retaining customers is certainly an important aspect to any business, one of the other complex challenges faced is sustained growth from year to year. How do you keep a business growing and ensure that you are staying abreast of market forces? While the answer to this differs from one organization to the next, there are some principles that all businesses should abide by. Measuring results should be implemented as a means to benchmark future growth and align the most effective talent practices while at the same time reveal inefficiencies.(2) The old saying of what gets measured gets done certainly has it’s merits. Furthermore, focusing on core strengths and not trying to be all things to all people is key to maintaining sustained growth. If consumers understand your core business and feel convinced about the value added service you provide, positive word of mouth is sure to follow and can be your greatest marketing tool(3).

Source: Corporate Executive Board

As most managers can attest, employee retention, especially of the highest quality and most desirable employees, is one of the key challenges faced within an organization. While the basics of competitive salaries, holidays and benefits are common solutions to this challenge, there are many incremental steps an organization can take to overcome this challenge. Maintaining a strong organizational culture has many fringe benefits for an organization and its managers. Staff who respect the management team and are content with the work environment will inevitably be more productive and stay on with the organization for a longer period of time. Furthermore, investing in the employee through various training courses, has positive effects for both the employee and the company. Making employees feel as though they are a vital part of the organization and that their contributions are valued and noticed, will lead the employee to place a stronger identification with the business itself.(4) Incenting employees who have achieved projected sales targets or goals, provides that added bit of recognition while building further loyalty to the organization.

An organization has to be responsive to the challenges and threats that it faces from within the internal or external environment. Adaptation and the flexibility of adjusting to rapid changes in the marketplace will have a substantial impact on your organization. While a myriad of challenges will inevitably persist, following these simple suggestions above and ensuring the right mix of substances will be certain to avoid any chemical reaction’s that may arise!