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Customer Royalty: 80% Of Your Revenue Comes From 20% Of Your Customers 👑
What are you doing to serve your best customers?
Not all customers are created equal.
Some customers waste your team’s time.
Some customers pay you late every month.
Some customers write nasty reviews online.
Some want to talk to manager every time they show up.
When I was in Public Accounting the worst clients were the ones who paid the least in fees, paid late, and wanted to use our team for free advice.
Conversely, the best clients were those who not only paid higher fees but also respected everyone’s time, including their own.
Despite these glaring differences, many businesses still adhere to the principle of treating all customers exactly the same. But why? This approach not only strains resources but also potentially undermines the quality of service provided to your most valuable clients.
The Pareto Principle of Customer Retention
Enter the Pareto Principle, also known as the 80/20 rule. In the context of customer relations, this principle suggests that:
80% of your revenue comes from 20% of your customers
