Size Matters

October 20, 2006

In almost every business I have examined, the 80/20 rule applies. Approximately 80% of the business comes from 20% of the customers. Interestingly, this surprises many companies. But it does have significant implications.

1. Is your sales organization aligned to service your key customers or is it equally spread out among all customers?

2. Are your marketing dollars aligned to support your best customers?

3. Are you ensuring that your best customers are receiving the level of service they expect and are entitled to?

4. Are you examining the customers who give you the least amount of business to see if it continues to be worthwhile/profitable to service those customers?

5. Are you in constant contact with your biggest customers seeking their “partnership” and advice on your current and potential future products and services?

6. Are you examining what is common among your largest customers and then analyzing your next tier customers to see who might fit the same profile? And, then being pro-active to elevate those second tier customers to the first tier?

These are all vital issues if you are to grow your business… issues often over looked.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

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