Should You Ignore 80% of Your Customers?
If 80% of your profits
Come from 20% of your customers,
Should you ignore 80% of your customers?
The wisdom of the 80/20 principle is widely known.
Focus on the small number of things
That produce the majority of the results you seek.
So does this apply to your customers?
Should you ignore all but your most profitable customers?
Clearly not, but -
It makes sense to pay more attention to your best customers.
And less attention to those that generate little to no profit.
Your best customers represent your ideal, best-fit customers.
They’re loyal. They buy more and more often.
And they’re generally less price-sensitive than other customers.
Therefore, strive to understand your best customers deeply.
So that you can increase your ability to:
✅ Retain your best customers,
✅ Find more customers like them,
✅ Influence their purchase behaviors, and
✅ Adapt, innovate, and improve your business.
Remember, not all customers are created equal.
Focus most of your energies on your best customers.
Know them, connect with them, and fight to keep them.
The success of your business depends on them.
Could a lack of customer understanding be holding your company back? If so, reach out, we can help.