How does the 80:20 rule impact on your business?

PIETaking a segmented approach to managing your customers could help you grow your business.

We have all heard about the 80:20 rule and have seen so many references to it in business terms that we almost gloss over it at times.  But what does this mean and how can we use it to positively impact our business?

The 80:20 rule could be applied to many different business scenario but in general it suggests that sometimes 80% of the gain or benefit can be achieved with as little as 20% of the effort.  Obviously this is a generalisation and it might not always work out exactly that way but nonetheless this forces us to think about certain aspects of our business a little differently.  The example I am going to use in this blog post is customer relationship management and how we could use the fundamental principles of 80:20 to re-focus our efforts and potentially achieve a greater return from the business we do with our existing customers.   Continue reading