Organisational transformation Singapore

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.