Comments on: How to make the 80/20 rule to work for you… http://www.bniriverside.com.au/how-to-make-the-8020-rule-to-work-for-you/ Brisbane's friendliest business networking group Fri, 21 Jan 2011 08:48:57 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Jerry http://www.bniriverside.com.au/how-to-make-the-8020-rule-to-work-for-you/comment-page-1/#comment-431 Jerry Fri, 21 Jan 2011 08:48:57 +0000 http://www.bniriverside.com.au/?p=700#comment-431 Yes, that 80/20 is quite remarkable. It occurs over and over. I've found it to be the case over the years with lead generation programmes. Typically 80% of the revenue comes from 20% of respondents. And then, as you fine-tune the programme over time, you'll find that the same ratio occurs AGAIN within the smaller, more targeted, more profitable group. And yes, the application to clients is VERY true. I remember talking to a CEO of an accounting practice in Brisbane years ago who had 'sacked' his poorest-performing clients. They were the 80% the produced the least revenue, yet caused the most hassle. It was a big decision — some $190K of revenue. But it was all back withing 8 months because they could then give better service to the 20% that were left. More profit. Less hassle. And his business was another 25% UP IN SIX MONTHS AFTER THAT as his reputation for good service spread. Yes, that 80/20 is quite remarkable. It occurs over and over.

I’ve found it to be the case over the years with lead generation programmes. Typically 80% of the revenue comes from 20% of respondents. And then, as you fine-tune the programme over time, you’ll find that the same ratio occurs AGAIN within the smaller, more targeted, more profitable group.

And yes, the application to clients is VERY true. I remember talking to a CEO of an accounting practice in Brisbane years ago who had ‘sacked’ his poorest-performing clients. They were the 80% the produced the least revenue, yet caused the most hassle. It was a big decision — some $190K of revenue. But it was all back withing 8 months because they could then give better service to the 20% that were left.

More profit. Less hassle. And his business was another 25% UP IN SIX MONTHS AFTER THAT as his reputation for good service spread.

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