With Papua New Guinea’s economy slowing, there are more companies chasing fewer opportunities. How to ensure your business gets the job? The answers are good customer service and developing local talent, according to management consultant Robert de Loryn.

RdL’s Robert de Loryn

For companies to be highly successful and profitable in these times of significant change, they must have a point of difference to their competitors.

There are two key areas that companies look to create this point of difference:

1. Be a customer-focused organisation
2. Develop highly skilled local management

Customer focus

Providing excellent customer service is an investment in future sales. However, a large number of CEOs do not pay attention to customer service—statistics show only about 40%.

It is generally much more cost effective to sell to existing customers than to keep having to find new ones. There’s a 5% to 10% probability of selling to a new customer, whereas the probability of selling to an existing customer is 60% to 70%. Plus, it costs six times more to get a new customer than it does to keep a existing one.

Great customer service is the best way to retain customers. Business leaders should therefore take the long term view that great customer service will lead to increased profits.

Through staying close to, and talking to your customers, you will understand their needs better and thus generate increased opportunity.

S P Brewery has had a significant shift towards a customer focus in their commercial operation for the past two years.

‘The biggest issue that has to be overcome is the mindset that only an expatriate has the ability to perform a role.’

Since 2013, SP has invested heavily in the training and customer focus orientation of their commercial team, and continues to do so.

Their sales force, customer service team and sales executives have participated in a five-day program of sales and customer focus training, followed by in-field coaching and development.

The program has already made a significant impact in SP’s operation and is being rewarded with increased customer satisfaction and sales growth. Feedback from their customers is extremely favourable and SP’s customers say they appreciate the way the new approach is focused on their own profitability too.

Skilled local management

Leadership training at Ela Motors

When an organisation invests in Papua New Guineans for management positions, the results are significant. When the right person has the right leadership development, results and profitability flow rather quickly.

I have witnessed the success of the investment in local management with many companies across PNG. The biggest issue that has to be overcome is the mindset that only an expatriate has the ability to perform a role.

One of the most significant investments in local leadership development has been by Toyota Tsusho’s subsidiary in PNG, Ela Motors.

For the past two years, it has invested significant funds in the development of their top 50 national managers. This investment has, and will continue to pay off for Toyota Tsusho, as the investment brings far greater returns than the funds invested.

One success story arising from their commitment to national leadership development was the promotion of their first ever female dealership manager in January of this year.

Toyota Tsusho continue developing their national staff in leadership skills and build their management capabilities for the future growth of the company.

Robert de Loryn is Managing Director of RdL Management Consultants