For the last two weeks, we have been talking about five key ingredients to a customer relationship strategy. If you missed the first two weeks, you can start by reading the first key ingredient here.
The third key ingredient is one that many people might find hard to do. But it is really all about knowing who your customer is and where your time is best spent. You only have so many minutes in a day and you need to make them count.
You have probably heard of the Pareto Principle or Pareto Law also known as the 80/20 rule. The 80/20 Rule means that in anything a few (20 percent) are vital and many (80 percent) are trivial. Pareto made the case that 20 percent of the people owned 80 percent of the wealth. He then went on to prove this relationship in other things as did others after Pareto. You can apply this 80/20 principle to almost anything, from your customers to many other things in your life.
Key Ingredient #3
- Focus on the 20% of your customers, clients and patients that give you 80% of your business. Stop wasting time on those problem customers who are less profitable to your business. Fire them instead. This may sound harsh and foolish but focusing on the highest potential relationships will allow you to earn more money and spend less time. As a result, you will—
- Gain better referrals from these sources because of your better relationship with them.
- Net more revenue from money that may have been previously left on the table because you were not aware it existed.
- Become a trusted and reliable partner instead of just another vendor.
Next week, key ingredient #4.