Here is a quick action plan that uses The 80:20 Rule, also known as the Pareto Principle, to get you more profitable customers.
The Pareto Principle
The Pareto Principle is the theory that 80% of effects come from 20% of causes. When it is applied to business theory, 80% of your profit will come from 20% of your customers.
Write down a list of your ‘Top Ten’ clients by profitability – What do they have in common?
[eg Company A,B,C… they are all spending more than £100,000 pa]
Talk to them to find out about how they heard about your business/product and how they use your product.
This will give you a better idea of how you can find and sell to similar companies.
Now answer these questions:
What do they have in common?
Where did you meet them?
Where can you find more customers like them?
Do you put in significant effort to acquire more customers like them?
Do you have similar clients in the pipeline?
What actions can you take over the next 30 days to acquire a new customer like them?
This should put you in a good position to find more customers as profitable as your Top Ten.
Robert Craven (@robert_craven)is an international Keynote business speaker, author, consultant and owner of The Directors’ Centre, a consulting and training company which helps owner-directors run the business they want to run.
His latest book Grow Your Digital Agency, which provides the business fundamentals that every growing agency needs to address,is now available.