80% of Profits may come from 20% of Customers, but sometimes 80% of Losses come from a Different 20%.
(Copyright PR Loyalty Solutions, 2011)
Vilfredo Pareto was an Italian economist who observed that 20% of the Italian population in the early 1900’s owned 80% of the land. From this developed what today is called the Pareto Principle or the “80-20 Rule”, where frequently about 80% of a result is accounted for by 20% of some factor.
Today, it is a commonly accepted belief that about 80% of sales for a typical business come from 20% of its customers. Continue reading