Marketing Decisions

The blog of LHL Partners, LLC. The blogger is (often) Rick Lightburn, Chief Knowledge Officer of LHL Partners, with his observations about marketing. Our main page is at http://www.lhlpartners.com

Monday, July 10, 2006

The 80-20 rule and Outsourcing customers

Does the 80-20 rule apply to your customer revenue? Do you get get 80% of your revenue, or profit, from 20% of your customers? (Perhaps the concentration is different ... no matter.) Are you doing enough to service these 'key accounts?' Do you even know who these 'key accounts' are?

What about the 80% of your customers, who only generate 20% of your revenue? Are all of them even profitable? Are you giving too much service for these customers? Maybe you ought to think about 'outsourcing' these customers?

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