It's important to understand not only the clients that are bringing you money, but also the ones that are not. Just as importantly try to understand what they are costing you!
Often called the Pareto Principleafter an Italian economist, the 80/20 rule while an estimate is generally remarkably accurate and can be postulated in a variety of areas – For example, you could:
speculate that 80% of your calls come from 20% of your products or issues
understand that 80% of your revenue comes from 20% of your clients
reflect on the fact that 20% of your bugs impact 80% of your customers!
By focusing your efforts on the 20% you will see a dramatic decrease in your calls and cases (or again from a business perspective a massive increase in your revenue!).
However – an amendment to the 80/20 rule is the 80/20/30 rule.
The 80/20/30 rule expands on the 80/20 rule. While it agrees that 80% of your revenue comes from the top 20% of your customers … the important point it makes is that … 80% of your cost will come from the bottom 30% of your customers.
This means that most of your costs; for time, resources, support, attention, etc… is wasted supporting the 30% of your customers who are not generating any revenue for you, or at least not enough to give you a return on your investment!! This is obviously not where you want to be spending your time or resources.
The next big 50% chunk should get some attention too as you want to transition these customers up into the next level … These are the clients you want to establish a partnership with as a trusted consultant and provider of solutions.
By getting to know these clients better, as well as their business’ needs and requirements, you will develop a customer relationship that will last for years. This connection will generate on-going revenue for your business and continued solutions for your client, hence a life-long customer relationship. Think about customer journey maps and other similar tools here to understand where the disconnects are happening and how you can remove pain points to improve their overall customer experience.
Perhaps something worth exploring is chat and chatbot solutions to help improve overall throughput within your team? These types of solutions are often available with CRM systems but can also be purchased separately through a specialist chat solution provider. In this case, they can be integrated into your CRM solution through APIs ensuring you do not lose visibility of your overall customer interaction.
Your Bottom Tier
But with the bottom 30%, you might want to change your strategy as they are costing your business money vs. generating money for you. Look at options like service agreements where they pay per call or perhaps even an annual support fee which would balance out the cost of their frequent service requests.NO ONElikes to lose a customer, but sometimes it just doesn’t make sense to keep them all either!
I am an ITIL Expert and extremely passionate about customer service, customer experience, best practices and process improvement. I have led support, service, help desk and IT teams as well as quality and call center teams in Canada and the UK. I know how to motivate my teams to ensure that they are putting the customer first.
I am an ITIL Expert and extremely passionate about customer service, customer experience, best practices and process improvement. I have led support, service, help desk and IT teams as well as quality and call center teams in Canada and the UK. I know how to motivate my teams to ensure that they are putting the customer first.
The DOL indeed expressly acknowledges that “some employers may incur ongoing management costs . . . to ensure that tipped employees are not spending more than 20 percent of their time on directly supporting work per workweek, or more than 30 minutes continuously performing such duties.”
Under the 80/20 rule, employers lose the tip credit for the time spent performing non-tipped side work if an employee spent more than 20% of their time performing tasks like rolling silverware into napkins, cleaning and setting tables, and making coffee.
Employers in New York State must follow the 80/20 rule, which prevents employers from using tip credits to satisfy New York minimum wage requirements if the employee spends more than two hours, or 20% of a shift, doing non-tipped work.
If you assume that 80% of an employee's time will be consumed with 20% of their tasks, the best way to maximize productivity is to ensure the most critical jobs are part of that 20%.
The original 80/20 rule said that you can pay an employee on a tip credit if the amount of sidework – like rolling silverware, refilling condiments, or general cleaning –- was not more than 20% of their total working time, hence the “80/20” moniker.
The 80/20 rule is not a formal mathematical equation, but more a generalized phenomenon that can be observed in economics, business, time management, and even sports. General examples of the Pareto principle: 20% of a plant contains 80% of the fruit. 80% of a company's profits come from 20% of customers.
The 80/20 rule is a guide for your everyday diet—eat nutritious foods 80 percent of the time and have a serving of your favorite treat with the other 20 percent. For the “80 percent” part of the plan, focus on drinking lots of water and eating nutritious foods that include: Whole grains. Fruits and vegetables.
For hospitality businesses, here's what the 80/20 rule means: 80% of your profits come from your most valuable customers (the top 20% of your customer base). The other 80% of your customers only contribute around 20% of your total profits.
The 8/80 hour rule relates to the risk/reward ratio of fixed price contracts. The 80/20 rule states that, for most contracts, 20 percent of the profits come from 80 percent of the work. The 8/80 rule relates to quality control.
This budgeting rule simply divides your take-home income into three categories: 50% for needs, 30% for wants, and 20% for savings and/or debt repayment. Your after-tax income is what remains of your paycheck after taxes (state, local, income, Medicare, and Social Security) are deducted.
The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority.
The 80/20 relationship theory states that you can only get about 80% of your wants and needs from a healthy relationship, while the remaining 20% you need to provide for yourself. Sounds like the perfect excuse to treat yourself to a spa day. This idea of an 80/20 time split is nothing new.
The 80/20 Principle: 20% of Employees Shoulder 80% of the Work. The Pareto Principle suggests that a small minority of employees is responsible for the majority of an organization's productivity. These 20% are the floor leaders – the ones who know what to do and simply take care of things.
The 80/20 budget is a simpler version of it. Using the 80/20 budgeting method, 80% of your income goes toward monthly expenses and spending, while the other 20% goes toward savings and investments. Of course, the 80/20 budget rule won't work for everyone.
The Pareto Principle, or 80-20 rule, is commonly recognized in business as a reason to take care of your most profitable, loyal customers. It indicates that generally speaking, roughly 80 percent of a company's profits are driven by the top 20 percent of its customer base.
The 80-20 rule is the principle that 20% of what you do results in 80% of your outcomes. Put another way, 80% of your outcomes result from just 20% of your inputs. Also known as the Pareto principle, the 80-20 rule is a timeless maxim that's all about focus.
80% of your needs are being met by your partner, and you're figuring out the other 20% on your own. When the 80/20 rule is applied to infidelity, the theory is that when someone cheats, they're attracted to the 20% in someone else that they were missing from their partner.
The Pareto Chart is a very powerful tool for showing the relative importance of problems. It contains both bars and lines, where individual values are represented in descending order by bars, and the cumulative total of the sample is represented by the curved line.
Introduction: My name is Eusebia Nader, I am a encouraging, brainy, lively, nice, famous, healthy, clever person who loves writing and wants to share my knowledge and understanding with you.
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ife-long customer relationship
Think about customer journey maps and other similar tools here to understand where the disconnects are happening and how you can remove pain points to improve their overall customer experience. 
