Business Model

The 80/20 Principle helps you to isolate customer segments where you are making higher profits and where you are less cost effective. Spot the few places in your business model where you are making great surpluses – be that a product, a market, a customer type, a distribution channel, a country, a type of transaction – and maximize them. Identify the places where you are loosing money and get out.

 

Stronger Business Design

Customer Value Creation

Balanced Business

  

 

 
 

Marketing

Marketing should focus on providing a stunning service in 20% of the existing products/services that generate 80% of fully costed profits. It should devote extraordinary endeavor towards retaining 20% of customers  who provide 80% of the firm's profits.

 

Empathize

Be a Helper

Customer Partnership

  

 

 

 
 

Selling

The key to achieving superior sales performance is to think 80/20, not averages. Hang on to the high-performing salespersons, get everyone to adopt the methods that have the highest input-output ratio. Focus every salesperson's effort on the 20% of products that generate 80% of sales, and on the 20% or customers who generate 80% of sales and 80% of profits.

 

80/20 Principle of Higher Profits

Customer-focused Culture

Customer Listening Tips

  

 

 
 

Customer Retention

The 80/20 Principle tells you that customer service function should devote extraordinary endeavor towards retaining 20% of customers who provide 80% of the firm's profits.

  

Customer Loyalty

Customer Retention at Dell