It’s an age old saying that still often rings true: 80% of your sales normally come from the top 20% of your customers. Does it apply to your business? Often we are so busy looking at the top line numbers in our businesses and posting increasing sales month on month, we feel we don’t have time to delve into the detail. We concentrate on gaining as many new clients as possible, thinking that this will lead to more sales.
Quite often more clients will equal more sales, but it pays to spend some time reviewing your existing customers too. After all, we all like to feel loved and wanted! You wouldn’t want to risk losing existing customers because you were so focussed on gaining new ones. A timely ‘thank you’, an exclusive special offer or a suggestion of complementary products and services can go a long way towards securing long term loyalty from some of your most important clients.
The same 80/20 rule applies to your suppliers – usually 80% of your spend will go through the top 20% of your suppliers. Do you feel they are all delivering you the best value for money? It is always worth benchmarking their services to ensure they are still making the most of your profitability. These suppliers may also be critical to your business, so make sure you are looking after them as much as they look after you. Making sure invoices are paid on time and you are a good customer to deal with can ensure you get the best service and help when it comes to more difficult negotiations including price increases.
Not sure who your top 20% are? Our business development VAs can help you understand the key players in your business and develop strategies to help you maximise them.
Please give us a call on 01483 332220 or email us at firstname.lastname@example.org to find out how we can help.