Who are your best customers?
The Pareto principle or the 80–20 rule says that, for many events, roughly 80% of the effects come from 20% of the causes. So how might this affect you in your business? I’d suggest that it can be profound. If you can identify which of your clients or customers are:
- The 20% who produce 80% of your profits.
- The 20% who produce 80% of your complaints and hassle.
- The 20% of your products that produce 80% of your profit.
- The 20% of your sales staff that produce 80% of the sales.
- The 20% of your marketing that produces 80% of the results.
Then you can make decisions that will drive your profits to super success. Of course it can be hard work analysing who are the
best and worst customers, staff or suppliers. Having identified them you can exit the troublesome ones and get to work replicating your best areas.