The 80:20 rule still rules!
The 80:20 rule still rules!
Looking back at the month end sales, has it even baffled you why the results were simply not reflective of the late nights and long hours you had spent prospecting and following up with your potential customers. Or is it sheer Lady Luck that wasn’t on your side this time, again. The 80: 20 rules states that most times 80 percent of your revenue is derived from the top 20 percent of your customers. If you don’t believe, go check your sales summary sheet and analyze the sources of the revenue contribution.
Conversely, many of us tend to spend time on customers and prospects who contribute to the latter 20 percent of the revenue. It’s not uncommon to have to trail the customers who make enquiries for small value items, prospects who ask for lots of leeway in the contract but are bent on starting on a small deal. How many times have you been calling on customers who send you on a rat race to get loads of information, discounts and package offers only to find him sitting on the proposal for the next two weeks and not picking up your calls right after.
Perhaps, it is timely to find out who the top 20 percent of your customers are and work on them further for further cross-sell or up-sell opportunities. In addition, ask your top customers for referrals and reward them with discounts when you secure a deal with their referral contacts.
Sieve out what’s taking the most of your time and giving you the least results. It is the typical ‘urgent but not important’ list on that ‘IN’ tray probably. And the challenge is to cultivate a discipline to be focused on what is important as opposed to what needs to be addressed immediately.
WHY COLD CALLING
SHOULDN’T BE COLD?
“I’m busy right now. Please email or fax your company products and I will call you if I am keen. Bye!” Such comments are not uncommon for all of us who have done cold calls. Did you know that the start of a successful cold call opportunity begins with knowing and identifying the need
of that prospect you are about to call?
Haven’t you been irritated by telemarketers who blatantly sell you something when he is unfamiliar with your needs and the profile of your organization.
Review your audience – check out business magazines, research on the organization web site and study the industry trends. Then pitch your message to your knowledge of his marketplace. Trust me, he’ll want to talk further.
is All it Takes
to Know a Little More
“The 80: 20 rules states that most times 80 percent of your revenue is derived from the top 20 percent of your customers.”
Keep these things in when prioritize your goals for the month: Identify your top 20 percent customer base and focus on them. Rationalize the opportunities with prospects before committing excessive hours to their needs. Actively up-sell and crosssell to your current accounts. Ask for referrals!