Mark Osborne explains how to identify your most valuable customers using the 80/20 rule. Sort customers by revenue, calculate their percentage of total, and you'll likely find 20% of them generate 80% of your income. Most businesses spend time chasing customers who barely move the needle.
by the revenue that they generated for you, sort it by that, do a percentage of total, look at the kind of the iron law of the 80/20 rule is about 20% of your customers are going to wind up making up about 80% of your revenues. Just sorting it and having that picture starts to give such a better understanding of who your real customer is, not who you want it to be or who you spend most of your time with, which oftentimes is not those companies that make up most of your revenue.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
