It has lots of names. The 80:20 rule. The pareto principle. HVC. Power Laws. Zipf laws. Whatever we call it, the idea is that around 20% of our potential customers will account for 80% of our upside. While the numbers can move around a bit, this basic idea applies in all aspects of customer management. It applies among your customers: a small proportion of your customers will provide most of your profit. It also applies among your prospects: a small proportion of the prospects have the potential to deliver much more profit than the rest.
If the 80:20 rule describes your market, how can you leverage it? Fortunately, it is pretty straightforward! [Read more…]