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Are You Sitting on Sales?

You’ve probably heard the 80/20 rule – based on the idea that 80% of your income comes from 20% of your clients.

The question then is, what you’re going to do about it?

I suggest one simple exercise:

The 80/20 Rule Exercise

Print out your customer list and, without analysis, reporting or anything else to go on other than your gut reaction, assign each customer an “A,” “B” or “C.”

Your criteria can be anything that matters to you:

  • Profit margin
  • Satisfaction
  • Quality of life
  • Your personal feelings toward the client
  • The kind of work you do for them, etc.

The only directive is be honest. After all, no one’s watching.

So, don’t put down the grades you think you should. Put down the answers that you feel are true.

Now, for the tough part:

Figure out what you can do to move the C’s to B’s and the B’s to A’s.

And, of course, what you can do to get more “A’s?”

 

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Eliot Wagonheim shares business insights that help companies stay on course. Get our latest blog posts sent right to your inbox. Click here to subscribe.