Having troubles in getting your to your best and most valuable customers? The principle on 80/20 will give you the perfect solution in order to reach your customers. Bear in mind that nobody is created equal. Thus, every person is as unique as the other. Your best customers are never created to be equal; each and every one of them has the capacity to choose a different approach or strategy to get what they want. Some of them may even contribute a huge lump of money but some will just cost you a certain percentage of your income.
The famous Richard Koch has this so called The Pareto’s Principle (commonly known as the 80/20 Principle). The principle will give you the idea that only 20% of the best customer which you have on your business contribute to your 80% revenue. This only shows that around 80% of your total customers seek for more energy, time, effort, and resources for your business.
In digging deeper into the principle, Perry Marshall wrote a book entitled 80/20 Sales and Marketing. This book explains and squeezes the different guides on applying Pareto’s principle. It talks about the different layers that the 80/20 can create to improve your revenue business.
Some 80/20 Principle
Every business must weigh its every move. It is better to know that the right customers will help your revenue increase in order for you to know whom you should give your all out efforts. Although some may see it as rude, it is necessary that the time your employees, staffs, and resources contribute will be of great use to your business. Determine the right approaches when it comes to customers and let your people learn from it for them to apply it.
Your employees need not exert more effort to keep your customers happy. It’s just a matter of selection. In applying this 80/20 principle, you will find it to be amazingly accurate and at the same time scary. You need to determine your customers, whether they are profitable or not? Whether they can increase your revenue or not? Or whether these customers are demanding enough to waste the time of your employees or not?
You can also use custom-made ads in order to attract more customers and you can carefully select those who will become evangelists for your business. It is crucial to your business that every time you select your profitable customers, new customers will come to your business. Nothing prohibits you to acquire more customers who will contribute greatly to your revenues.
The 80/20 principle will give you a lot of learning when it comes to your business. It may be hard at first, but all of it will be worth it in the end. Nothing comes easy in today’s generation. What is important is that you will end up with customers who will actually do well for your business and you can give them more time. Why should you spend your efforts on 80% of your customers that can only contribute 20% revenue to your business. It is time to give your business the customers it deserves.