When a Handful of Customers Make Up the Bulk of Your BizJuly 6, 2017
If you were to be asked by a friend or family member what type of client base you have, you would likely sum up a general description of your clients. (For example, you may say something like, “We primarily work with manufacturing companies.”). It is also likely that you may name one to three of those specific clients to further drive the point.
The handful of clients that came to mind in this scenario are likely clients that you have been doing business with for a significant amount of time and represent a solid source of revenue for your firm.
How many clients do you have that match that description?
Chances are, it’s only about 20 percent of your clients. The Pareto Principle explains the phenomenon. This article from Forbes.com breaks down the details. Typically, 20 percent of the actions drive 80 percent of the results. In this case, 20 percent of your clients are driving 80 percent of your firm’s revenue.
In order to maximize revenue growth opportunities and solidify relationships with clients, by this principle, focus on that top 20 percent. If you have 50 clients, this is about 10 business relationships.
The challenge in the thought process is, “All of my clients deserve my utmost attention and service,” and that is true. However, since the top 20 percent are the majority of your business, those relationships are not equal to the remaining 80 percent that are not.
ABLE’s Design Supports Your Most Valued Clients
There are four major components through which ABLE helps you manage your top client relationships:
- Your 36 CRoPs: Focus the limited time you have to drive the growth and profitability of your firm on 36 critical relationships – your 36 CRoPs. 12 key Clients; 10 Referral opportunities, and 14 coveted Prospects. Learn more about CRoPs here <link to Do Small Well)>
- Thought Leadership: Send appropriate and relevant content to your contacts every 45 days with Thought Leadership. ABLE provides a library of articles for you to use, or you may choose to use your own. The key is content is delivered in a personal manner from you, allowing you to engage your clients in meaningful conversations.
- Pipeline Management: Monitor the status of opportunities and deals with current and prospective clients firm-wide.
- Accountability: With ABLE, all firm members to see the status of your business relationships. This adds a layer of accountability for members to keep their interactions up to date.
Did You Know managing your top 20 percent is easy with ABLE? Contact us for no-obligation demo to find out how.