Identifying your customers- how and why

There is an 80/20 rule that shows itself in several different places throughout your business.

The 80/20 rule is actually The Pareto Principle, named after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population, and that 20% of the pea pods in his garden contained 80% of the peas!

In business, the following usually applies:

  • 80% of your sales come from 20% of your clients
  • 80% of your sales come from 20% of your products
  • 80% of your headaches come from 20% of your clients

If so much of your sales come from only 20% of your clients, you want that 20% to be your best. Those are your A clients and you want to keep them to be happy, so that they return again and again, and recommend you to others. After you know who they are, you must reach out to them, learn where else they shop and what else they buy. By closely observing these clients you can focus on their needs, and ensure they remain the 20% who continue to provide your sales, while you always provide them with they want.

Give the people who deserve it more time and attention. Shift your focus away from that 20% who gives you headaches and work with your A and B customers.

Grazie Vilfredo!

If you would like further information or you have any questions about this blog give me a call at 305-899-9963 or email me at [email protected] and we’ll make it happen.

Coach John
“Living beyond the ordinary”

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