The 80/20 Volume Paradox
The 80/20 Volume Paradox
MarketingProfs.com
If the clients who make up the top 20 percent of your client base are also the top 20 percent in volume, your company may need to adjust marketing efforts based on the 80/20 rule, this article says. That's because, though it seems to make financial sense to market to these great customers, rather than spend, spend, spend to acquire new ones, the sheer volume of their purchases can skew your results. Keep in mind that they may be maxed out and they're probably getting the best rates, giving your company a lower margin. Doing a little more client analysis may reveal growth opportunities; it may be time to try a margin-based strategy or the 90/30 rule, both explained here.
Full Article
http://ct.itbusinessedge.com/t?ctl=DAAACB:3C5015E
posted by Victor Lloyd Smith @ 3:26 PM
0 Comments:
Post a Comment
<< Home