• 80/20 Rule

  • Today I am  going to share with you .. one of  marketing’s’ great secrets!

    Have You Heard of the 80/20 Rule?

    The Pareto Principle or more popularly known as the 80/20 rule is a business principle which states that 80% of the results you get arise from 20% of your total effort. This same ratio can also be applied to clients. Most of the time, 80% of your total revenue will come from just 20% of your clients.

    Do you know who your top 20 % of clients are ?

    The 20% of clients who give you the greatest revenue are actually your high-value or Ideal clients. They are your best clients because they bring you the most work and the biggest revenue. These are the people that you want to come back to your for more business. If you do your job well, they will come to you whenever they need you, and even refer you to their friends.

    The part where it gets tricky is that time when you have to find a balance between your high-value and low-value clients. Your high value clients should of course be prioritized, but at the same time, you shouldn’t take your other clients for granted either.

    Analyzing Your Client List

    Before you can prioritize your high-value clients, you have to first determine who they are. This process begins with analyzing your client list. Identify which individuals or businesses are giving you the biggest revenue and the most number of recurring transactions.

    Once you’ve sorted it all out, you must concentrate your marketing and business development efforts on your high-value clients and on getting more of them.

    What about the other clients?

    Despite being the people on the lower levels of your priority list, your lower-value clients should still be given the service that they deserve. They may be your least favourite people, but they are still customers who can make or break you in the end.  It is up to you to be able to delegate lesser value clients to team members to allow you to focus on finding more Ideal Clients and managing those you have.

    Our Value System With Clients

    Now that we’ve shared with  you this important business principle, it’s time to share our own view on things. Our clients believes that in a service business, each client is a high-priority client. While they of course give a lot of attention to big clients, they  ensure that even the simplest of matters  are executed well and done with thorough preparation.

    An unhappy client is like a walking ad for bad publicity. Satisfied delighted clients on the other hand are like unofficial sales representatives.

    We work closely with clients to develop commumication systems to ensure all clients become great advocates and would be happy to discuss how we can  assist your practice.

     

    Call 0419 222 3 44 or email matthew@orbitstartegies.com.au