Posted: August 11, 2015 by Jaime Stenning
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:
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.