Many companies become slaves to their "top 20%"--the customers who provide 80% of the revenues. But we should always inspect or biggest customers to make sure they have the profits and the future we want, as Ian Brodie points out.
Lighthouse on Sales Excellence: Challenging the 80:20 Rule. 2008-Mar-5, by Ian Brodie
In all three cases the key is to look beyond the simplistic 80:20 rule to check:
- Does it really apply in my business?
- Does it persist over time - or do I actually need to focus on “rising stars”?
- Will extra effort on my top 20% really increase sales - or are they already being fully served?
Now don’t get me wrong - the 80:20 rule can be very helpful as a simple guide to where to focus your effort. But thinking beyond the simple rule will pay big dividends for sales people willing to invest their brain power and challenge the accepted norms.