It is an old business adage: About 20 percent of your customers produce 80 percent of your sales. In my book 80/20 Sales & Marketing, I argue that this 80/20 principle also applies to time management, search engine marketing and far more.
The funny thing is that even with sales, business owners often ignore the 80/20 rule.
We’re all tempted to waste our time trying to please all of our customers instead of the most lucrative ones.
We are all conditioned to always respond to the stimulus around us. So if you obey the 80/20 rule, you are going always to feel as though you are ignoring something — because you are.
It will be an irritating feeling at first. And it particularly gnaws at Americans because we are prone to trying to treat people equally. The phrase is clearly written our Declaration of Independence, that all people “are created equal.” .
But all customers are not equal. Far from it. Some earn you an amazingly disproportionate amount of money, many make you a little bit of money, and some even waste your time. With the last group, you lose money selling anything to them at all.
Your goal should be to zero in on those 20 percent of customers who are essential for your business’ prosperity.
Here are some tips on how to do just that: