Do you believe this theory?
・80 percent of what you accomplished at work comes from 20 percent of the time you spent working.
・20percent of your clothes will be worn 80 percent of the time.
Richard Koch (born 1950) is a former management consultant, entrepreneur, advices to marketers: When you discover which 20 percent of your customers are responsible for 80 percent of your sales, focus your energies in keeping these customers happy and increase your business transactions with them.
By applying the 80/20 rule, you can reduce your marketing budget because you can pay less attention to the 80 percent who motivate 20 percent of your profits.
I kind of understand what he is saying in the examples; however, do you believe this theory?
Do really 20 percent of “Royal customers” bring 80 percent of the company’s profits?
2 comments:
I do believe in 80/20 rule. From my own time management experience and job experience I can say that it is really works!
I used to run Internet sales business and my customer database indicates that small portion of customers give big part of company profit. Of course proportion is not that precise 80/20, 80/20 is just rough approximation.
Those who can utilize their time effectively can finish less than or equal to five times of works. Not bad...
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