You’ve probably heard of the “80/20” rule in sales, and maybe you even live it.  For many companies 80% of their revenue comes from 20% of their customers, and as a result they focus the majority of their sales efforts on the top 20%.

Following the 80/20 rule is not without risk:

• Too much dependency on a few customers can lead to problems for you if they hit tough times.
• Your top customers have often matured in their territory, and have limited potential for significant growth.
• Your sales team can become order takers for top customers, slowing the development of new customers.
• Production flow may be disrupted due to uneven flow of incoming sales.

What many companies fail to see is the opportunity presented by the 80% of customers that aren’t their focus today. A little attention to those customers while adding a few new ones can have a dramatic impact on sales.

By segmenting your customer list, you can evaluate your customer concentration and find new revenue buried in your current customer roster. We created a simple worksheet to help you see how your sales break down and the risk inherent in your current customer portfolio. If you have your sales data handy it should only take 10 minutes or so. When you’ve got your results give us a call and we can talk through how to balance your customer portfolio, reduce your risk and increase revenue.

Download our “80/20 Revenue Calculator”.