Are You Wasting Your Time Trying to Win The Dead Weight?

By: Wessam Mohie | Forefront Coaching & Training | Founder & CEO
Posted on Aug 20 2011

You probably heard before the 80/20 Rule which states that :

·         80% of your revenues are generated by 20% of you customers

·         80% of your profits come from 20% of the products

In each of the above cases, 80% of your results will be achieved by 20% of your activities.

How can you use this concept to improve your business profitability? The answer is simple. You need to focus on the top 20% of your clients who drive the majority of your revenues. You need to pay extra care to those people. Our problem is that we tend to take those people for granted.  We feel we don’t have to worry about these customers because they love us already. We get lazy with these customers because we know these customers are profitable. We then invest enormous effort and resources to try to make our money-losing customers profitable. We end up making those money-losing customers the focus of our marketing. The reason for this in my opinion is that entrepreneurs are usually very proud of their products and services. They cannot imagine that someone would reject them. They would go extra miles to convince others of the merits of their service. So they spend a lot of efforts trying to chase this segment of customers who really cannot care less about what they have to offer.

The truth is money-losing customers are your deadweight and you will be better off if you get rid of them. These customers will never be profitable no matter how hard you try to please them. You should fire a bad customer just as you fire a bad employee. If you do not get rid of bad employees, the good employees will leave and if you do not get rid of the bad customers, not only the good customers will leave, but many of your good employees will leave as well. This step alone has the potential of increasing your profitability noticeably.

Your next step is to give your top 10% or 20% of customers a lot more tender loving care and to offer more and more of whatever it is that makes these gold-plated customers love you so much. And treat them as the dear and loyal friends they are to you and your business, because you can’t survive and prosper without them.

Book Entrepreneur, Professional Trainer and The First Certified Guerrilla Marketing Coach in the Middle East, Wessam Mohie, at your next event if want to turbo-charge your business through attracting a steady stream of clients.

 Claim your free report "The 10 Deadly Mistakes Entreprenuers Make That Can Put Them Out of Business" at www.itsrainingclients.com 


Comments (0)

Leave a comment

You need to be logged in as a member to comment. Login or apply for membership here.

busy
 

Our Strategic Partners

Banner
Banner
Banner
Banner
Banner
Banner

Recent Activities


19 August, 2014
claire.fenner Back from summer travels and busy working on exciting projects for Heels & Deals…watch this space!
- Comment

27 July, 2014
glynisstevens commented on COVER TOTAL F

Uncover the power of the diamond within.
- Comment

glynisstevens commented on

Uncover the power of the diamond within.
- Comment

glynisstevens added new photos to My album.
http://heelsanddeals.org/images/photos/829/34/thumb_5fba92e867325ea0b9354edf.png
- Comment

9 July, 2014
KaKapur joined our community; welcome!
- Comment

2 July, 2014
claire.fenner added new photos to Summer Social, Hong Kong - July 2nd 2014.
http://heelsanddeals.org/images/photos/103/69/thumb_8802205edcea859e1ebe0d70.png
- Comment

25 June, 2014
priya.padmajith uploaded a new avatar
- Comment

12 June, 2014
pmholberg is now connected to beckrose
- Comment

2 June, 2014
SamCornelius If you think you may benefit from an intern in your business, or you just fancy a chat to find out more about internships and how we can arrange them, please connect with me or email me on sam@standoutint[email protected] Thanks
- Comment

29 May, 2014
Esmeesanders joined our community; welcome!
- Comment

Please login or register to show all activities.