Pushing for perfection is an admirable trait in the world of business, but is it worth the effort?
Working hard is always rewarded, but what is the return on your effort? One school of thought on this is the Pareto Principal.
The Pareto Principal, also known as the 80/20 rule, is a rule of thumb in business that states 80% of your profits will come from 20% of your customers. The unfortunate flip side on this is that the most valuable 20% of customers will often not get 80% of your effort.
If you haven't already done so, you need to identify that valuable 20% of your client base. Make sure that they get a share of your time and effort that is proportional to their value. While it might make sense to make every client happy, you should always make sure the clients who are worth more to you get a priority.
Do you know who the magic 20% of your client base is?
TAGS: Pareto Principal
Bookmark / Share
Recent Entries:
· Interruptions Are The Enemy of Productivity
· 10 Tips For Entrepreneurs In 2010
· Canada’s Dollar Trades at Almost Lowest in More Than Month
ABOUT
Profit.ca -
Guide to Canadian business.
send tips/stories to
contact us
click here.
LANGUAGE
En Français
SEARCH
[ READER COMMENTS ]