Workplace Examples
Of The Pareto Principle (80 20 rule) Applying The Pareto
Principle
To Your Business
How
many times have you heard someone mention
the pareto princple or the 80/20 rule: 80 percent of your business
comes from 20 percent
of your customers.
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.
Last week I got a call from the owner of a company that
sells/rents equipment that is used in the filming of movies
and television programs. He told me that many people call
to purchase hard-to-find replacement parts (that cost less
than $100) for equipment that was purchased elsewhere for
tens-of-thousands of dollars.
His sales people find themselves wasting lots of time
on these little - insignificant - orders, while they don't
have enough time to call on companies who could purchase
tens-of-thousands of dollars of new equipment. And then
he wonders why business isn't what it should be.
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 with in a contact
management program. My preference is ACT!.
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.
Authors
Details: Workplace Examples Of Pareto Principle
Jeffrey
J. Mayer Web
Site |
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