} Why changing the way you look at your customer list will change the future of your business… – Swinton Accountants

Why changing the way you look at your customer list will change the future of your business…

When was the last time you looked at your customer list? The full list…

When you look closely at it you will see an imbalance.

The chances are that 20% of your profits will be generated by 80% of your customers.

It might be slightly less, it might be slightly more – but the imbalance will be there.

Then look at how much time you spend on the 80% of customers.

It is also probable that the 80% cause the most trouble…

On a micro level these customers probably order more frequently, very low value items, have more deliveries, complain the most, ring the most and pay the latest.

The high value customers probably have 1 or 2 large deliveries, hardly phone and pay on time.

Ok… I am applying a general rule but when you look down your list this will broadly be true…

In fact, you might speak to your smaller customers more and yet losing them would not make a massive difference to your bottom line, ironically, they probably get a better service than the top 20%.

This imbalance needs to be addressed for your business to be truly successful.

It pays for your business to focus on the top 20% of your customers, the ones that mean the survival and future of your business…

For example, it makes sense for a hotel to look after the long term penthouse suite guest rather than the single room, one night stay guest.

The person in the penthouse should be checked in immediately on arrival, should get room service first and should get the best linen the hotel has, the one-night guest simply should not…

The Penthouse guest and others like them are the reason the hotel is in business, the one-night guests come and go…

Start seeking out ways to put 80/20 to work on your customer list and focus on the 20% of customers that matter most to the future of your business…

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