80/20 Customer “Gold Program”® – Business Optimization

The way to differentiate from your competitors is to quantify the top three answers they might provide you. For example, for on-time delivery, a quantification maybe “we have a 99% on-time delivery while our competitor’s delivery time is only 90%.” Once the quantification is determined, then these reasons can be used to build your brand for essentially free.

Business Optimization – 80/20 Customer “Gold Program”®

Methodical strategic development of proactive customer service can yield large revenue growth from your existing customer base. The 80/20 Customer “Gold Program”®works. I have used it many times to increase revenue performance by 110% to 300%.

What is a typical response to close a conversation with a customer? “Thanks for the order and have a good day.” How many conversations, emails, invoices, or contacts with customers, do you have in a month as a whole company? Most companies have hundreds or thousands of touchpoints.

Learn more in my book about Business Valuation Principles. Understand the 80/20 Customer “Gold Program”®, and how it can help you increase your revenue performance. https://successbiznow.com/books/business-valuation-principles-by-dale-richards/

With the correct methodology, a company can build its brand significantly for a very low cost. Luckily, there are many different methodologies that could be used to build a brand. Whilst some methods might work for some companies, they might not work for other companies. It’s all about finding the method that works for your business. One way of increasing sales is by using loyalty schemes with customers. This gives them rewards, which makes them spend more with your company. To look into some of these methods, it might be worth visiting a website like https://us.epsilon.com/epsilon-peoplecloud-overview/loyalty to see how you could implement a loyalty strategy into your business. That method might just work for your company. If it doesn’t, then it might be worth looking into the 80-20 principle.

How can you use the 80/20 principle to PROACTIVELY increase your revenue by 10% – 200%?

First, you must find out who the top 20% of the customers are. Take your customer sales data for the last two or three years and download this data to a spreadsheet. Once it is downloaded sort from highest revenue to lowest. (You should also look at the customer by a margin.) Add a column for cumulative percent on the side of the revenue sort. Sum each row until you reach 80% of the total revenue. Now you know the top customers.

If you complete this analysis over several years you can also discover top customers’ revenue and margin trends. It might be a surprise that some customers that were at the top a few ago may not even be on the list. This is an opportunity to visit them discover why they left and invite them to return.

Once the top 20% or 80/20 Customer “Gold Program”® customers are determined then a methodical program can be designed to build relationships with key people within the organization. What company roles or positions would you want to build a relationship with? Chief Executive Officer (CEOs), executive officers, purchasing agent, accounts payable, project director, sales department, etc. Now strategically have a corresponding department person in your company build a relationship with them. How do you find out what these people like or enjoy? Meet or talk with them to get to know them better. This process will build a proactive vs. reactive customer relationship.

Amy Johnson, Skyline Scaffolding, Sacramento, California attended Dale’s Vistage Presentation and wants to conduct the 80/20 analysis to increase sales. The attendees learned key business concepts from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational, and Strategically.