Do 20% of your customers need different treatment?

The 80/20 rule applies to so many things in life, with sales and marketing being no exception. One interesting exercise is to rank all of your customers (perhaps by likely spend next year), and to see if they form an 80/20-style group, with 20% of them accounting for 80% of business. Now, I’m not suggesting that this is telling you to drop 80% of your customers, because the little ones are often the bedrock of a business. But you could see other characteristics defining the two groups, and it could make you reconsider how you market to those customers – because they clearly shouldn’t be treated alike.

2 thoughts on “Do 20% of your customers need different treatment?”

  1. Some are more important than others, time is limited.

    It is ok to fire customers.

    It is ok to look for the type you like.

  2. This is often a very valuable exercise. I would normally encourage this analysis to be done not just on revenues, but also on gross profit or contribution for each customer. Finding out who is really generating profit/contribution will inform your sales and marketing efforts. Some of your “best” customers in revenue terms may not be adding much to the bottom line.

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