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80:20 Rule for Business
Human Resources » Organization Development


Chrm Message From: jac Total Posts: 34 Join Date: 15/10/2007
Rank: Executive Post Date: 15/10/2007 23:32:17 Points: 170 Location: United States

Dear Friends,

If you are given a choice to select from 2 currency notes, first a Rs.100/- note and second a Rs.1000/- note What will you choose? And why?

All of us would choose Rs.1000/-, of course, then the Rs.100/- because Rs.1000/- is 10 times Rs.100/-. Because you have identified the which is bigger/greater value.

Similarly in your Business are you aware who is Rs.1000/- & Rs.100/-. Customer.

80 percent of your business comes from 20 percent of your customers.

The 20% customers are your Rs.1000/- notes. Have you identified them? Are you aware of them?

Take a look at your business and see if this applies to you.

If so, think about this for a moment... If you're really getting 80 percent of your business from 20 percent of your customers, then your getting the remaining 20 percent of your business from 80 percent of your customers.

Why waste so much time, effort and energy trying to serve the 80 percent of your customers that are generating only 20 percent of your business?

With this in mind, let me ask you 3 questions:

How much time is being spent servicing people that don't buy very much from you?
How much time is spent answering questions from people who bought from you last year - and aren't a current customer?
How many people call you, ask lots of questions, take up your time, and then buy from someone else?
When you're wasting your precious time, effort, and resources dealing with these people, you aren't giving yourself the opportunity to find new prospects who could become valued and loyal customers.

And you wonder why you're so tired and business is so slow.

Take a look at how much time you are spending calling on, servicing, or answering questions from people who don't do business with you.

STOP WASTING YOUR TIME!!!

Here are 3 things you can do that will help you eliminate people who keep you busy, waste your time, and never do business with you:

1. Keep track of everybody you speak and contact.

2. Keep detailed notes of everything that was discussed, how much time they took up, how much they purchased, and how timely they are about paying their bills. (Customers who don't pay their bills are BAD customers.)

3. Schedule regular follow-up calls and meetings so you don't lose track and forget about your good customers.

People who say "Call me in 2 weeks." or "I'm in a meeting and can't talk, call me later." or "Just send me something." are probably blowing you off but don't have the courage - guts - to tell you they aren't interested.

They're more than happy to let you waste your valuable and precious time.

Spend your time serving the 20 percent of your customers that generate 80 percent of your business and let someone else look after everybody else. Now you've more time to find, meet, and sell new customers that have the quality and characteristics of your best customers

You'll quickly begin to close more sales, make more money, and have more fun.

You’ll enjoy collecting Rs.1000/-, so friends it high time you start identifying it and be aware of it.

Please share your feedback regarding the same.

Chrm Message From: kareem21 Total Posts: 1 Join Date: 15/10/2007  
Rank: Beginner Post Date: 23/06/2008 03:07:39 Points: 5 Location: United States

Hi,

The point is you are not sure when one of this 80 percent customers who you say are waste of time turn into the 20% as a result of the satisfaction experience with you.

Hence Customer is always the King. Treat him with full respect

 

Chrm Message From: dafi Total Posts: 1 Join Date: 15/10/2007  
Rank: Beginner Post Date: 07/10/2008 23:02:28 Points: 5 Location: United States

Hi kareem,

In my opininon, you are categorizing the customer in a very limited way, BAD or GOOD. as long as my experience as a customer service industry, we treat all customer in a very good way, even bad customer, because they are still human too. human can change candbe improved.

in business, I agree with you talking about profit and loss. but, business also has perfom it in a decent manner. that way can make a good image that make our company has competitive advantages.

Chrm Message From: razpak Total Posts: 5 Join Date: 15/10/2007  
Rank: Beginner Post Date: 25/07/2010 06:56:15 Points: 25 Location: United States
Good talented sales persons should be able to convert the "Call me in 2 weeks." or "I'm in a meeting and can't talk, call me later." or "Just send me something." customers to positive customers and make 100/- worth sales to 1000/- worth sales.
Chrm Message From: prakash.savariappa Total Posts: 2 Join Date: 15/10/2007  
Rank: Beginner Post Date: 18/08/2010 02:52:12 Points: 10 Location: United States

The system is appreciative. The way we should keep in track of all that we do.

To my understanding, the way you interact with the 80% of the customers who are eating your time up, will decide the 20% to stay or not. Customers are clever. They do research ad talk with people about it.

For instance, if you start differentiating based on the revenue they give, then we'll not be able to build the business.

 
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