The 80-20 rule, Pareto's principle, is great and very powerful. 80% of your business comes from 20% of your customers. Or 20% of your salesmen generate 80% of your revenues (The Circuit City example).
The Harvard Business Review article sounds about right. The best 20% of your customer base generates 80% of your business. The last 10% of the customers churn from vendor to vendor causing problems. They are very 'high maintenance'. Bill R, after your retail experiences, I can't believe you want to keep that last 10% of the asshole customers who cause you all those problems. Regards, Bob S, On Thu, Feb 4, 2010 at 7:42 AM, Doug Franklin <[email protected]> wrote: > On 2010-02-04 8:22, William Robb wrote: > >> If you drop 10% of your >> customers every year, how many years does it take before you can't get >> new ones because you've dropped them all? > > The thought that came to my mind was the company, I think it was Circuit > City, who fired all of their highest producing salesmen a few years ago, > because they were the most expensive (highest paid). The company then filed > for bankruptcy within about a year and has since been liquidated. > > -- > Thanks, > DougF (KG4LMZ) > > -- > PDML Pentax-Discuss Mail List > [email protected] > http://pdml.net/mailman/listinfo/pdml_pdml.net > to UNSUBSCRIBE from the PDML, please visit the link directly above and > follow the directions. > -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
