Steve called me up the other day and wanted to know how grow his business. I asked him how many customers he had? He wasn’t sure and said he would look it up right away. He got back to me and said around 145 customers Bob.
I then asked to break down his customers by how much business they did with him in dollar amounts. He asked, why?, as he treat all my customers the same.
I had a feeling he did this.
Defensively, Jim said, “I provide good customer service to all my clients.”
I asked him to put a number between 1-10 on each client on what he perceived the relationship was with each client?
Jim did his assignment and was quite astonished by his results. “Bob, I was most amazed by the amount of time I spend with some customers and their complaints, and how little business I actually do with them.”
Welcome to the Pareto Principle or otherwise known as the 80/20 rule! The Pareto Principle, or “80/20 Rule” as it is frequently called today, is an incredible tool for growing your business. For instance, if you can figure out which 20% of your time produces 80% of your business results, you can spend more time on those activities and less time on others. Likewise, by identifying the characteristics of the top 20% of your customers (who represent 80% of your sales), you can find more customers like them and dramatically grow your sales and profits. Read more on this principle here.
All customers are not the same and shouldn’t be treated the same! That second Jim realized that some of his top customers he barely knew at all. That’s where the gold is. It’s all about building these relationships to a 9 out of 10. Or even better… a 10! Focus on building solid relationships with the top 20% of your clientele . Focusing on building a great relationship can take these customers to the next level.
Bob Molle (Coach Bob)
Get Comfortable Being Uncomfortable