In a great many businesses, small and large, the matter of new customer acquisition is approached in a haphazard, intermittent, unplanned, and uncoordinated way. The results are understandably often less then satisfying, more expensive than expected, and generally inadequate from the standpoint of contribution of profit. Useful insight into the problem of getting new customers can be obtained by considering the sales department as a purchasing function, spending company resources by investing in customers and sales volume. The controls, systems, thought, and effort devoted to finding the right source of materials, providing for the most effective delivery performance at a favorable price, is a continuing and evident management concern relative to its purchasing activities. Disciplines are established and controls are in place to measure supplier and purchasing effectiveness.
Alternate bids are secured and potential suppliers critically tested for quality and service.
Capital expenditures are closely evaluated. In most cases the investment in customer acquisition is heavy, scattered, unmeasured, and unplanned. The monies spent in this type of effort consist of advertising dollars, sales salaries and expenses, phones, samples, administrative time, and often expensive engineering costs. The alternative to the shotgun approach to customer or account development is usually less expensive and substantially more productive. It involves some straightforward initial analysis and planning inexpensive enough for the smallest business.