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Questions for discussion
1. How much detailed knowledge does our top team have about our

customers?
2. Do we have any mechanism to indicate which customers are

worthwhile and which simply cost us money to serve?
3. How could we find such information?
4. How can we divest ourselves of the nuisances?
5. How can we influence our best customers to buy more?

(There are only three basic ways to increase sales without building the cus-
tomer base:
1. Customers are encouraged to place larger initial orders usually

through reversing or reducing any perceived risk in making the
purchase.
2. More frequent replacement orders are won usually through
co-operatively supporting onward sales – or increasing brand
awareness if the customer is a distributor.
3. Customers are persuaded to place larger replacement orders through
discounting prices or offering more attractive settlement terms.

(In all cases it is essential to find strategies that actually increase sales
rather than pre-buying business that would have been available in any
case. It is, of course, essential to assess carefully the effect on cash flow of
any increase of business.)

6. How can we identify and attract new customers similar to those who
are most profitable from competition?

7. Are our sales policies and reward structures appropriate to a need to
attract quality rather than quantity when it comes to customer
acquisition?

A leadership game plan

Stage one and Stage five

In any situation where there is novelty, a new team, a new task or a new
leader it is wise for the leader to assume control and to concentrate only on
achieving the task until the team has begun to develop a track record of
success.

n Establishing goals.

n Establishing standards of performance.

n Providing direction.

n Maintaining discipline.

n Communicating norms of behaviour.

n Formal training as required for accomplishing the current task
with maximum efficiency.

“Leadership is what leaders DO!” 107