Comments on: Is The Pareto Principle Always Relevant?

By: Controlling the Conversation - Brand Control | Entrepreneur Solo

Controlling the Conversation - Brand Control | Entrepreneur Solo — Sun, 07 Mar 2010 22:19:19 +0000

[...] out fires before they develop. (By the way you need to sack that customer as described in the Pareto Principal Post) Online reputation management is more and more important as the online World seamlessly evolves [...]

By: Daily Digest for February 9th | Entrepreneur Solo

Daily Digest for February 9th | Entrepreneur Solo — Mon, 08 Feb 2010 23:44:52 +0000

[...] admin published Is The Pareto Principle Always Relevant?. [...]

By: admin

admin — Mon, 08 Feb 2010 12:07:15 +0000

Totally agree Mike. Lifetime value of a client is important but number of potential clients also comes into the equation.
I can get my head around that.

By: MIke CJ

MIke CJ — Mon, 08 Feb 2010 11:31:09 +0000

Just to extend this, I was taught a lesson years ago which has stayed with me.

Instead of looking at your 100 “prospects” and trying to decide which 20 will actually do business with you, place a value on each.

To explain: Let’s say the 20 will spend a total of €5000 with you. Change your mindset from thinking 20 of these people are going to be worth €250, to one where each of the 100 are worth €50 each.

It sounds weird, but if you can get your head around it, you’ll end up welcoming every new contact equally well, and dealing with them in the same way.

You’ll find that even the ones who scream “tyre kicker” at you in the initial contact, sometimes turn out to be buyers.