H Ltd is a company providing postal and courier services to small businesses. Customers pay a monthly or annual subscription fee to use the service, plus a very small fee for each item delivered. A year ago, H employed a new sales team. Their remuneration is dependent on the number of new customers they sign up. Sales increased dramatically in the first six months, but now difficulties are emerging such as new customers dropping their subscription once the initial period has expired; subscriber direct debits being returned unpaid; subscribers going out of business and other similar issues.
Which of the following would be appropriate to help resolve these problems?
- Alter the pricing structure in order to increase the price for sending each item but decrease the subscription element of the fee.
- Ensure that a credit check is carried out before a subscriber is accepted.
- Reduce the rate of commission payable to any sales person who fails to sign up at least an agreed minimum number of customers each month.
- Alter the commission arrangements so that commission is payable only when the subscriber signs up for a second year.
- Preparing a monthly report for sales persons detailing the performance of each new customer they have signed up over the previous year.