Some customers are more important than others. In fact, a few of your customers are probably far more important than all the rest put together. This natural imbalance is at the heart of business. Not all things are equal – there are the important few and the trivial many. Customers, products, distribution channels, staff, suppliers etc. In each category, a small number are disproportionately important.

Pareto analysis is often referred to as the 80:20 rule. This refers to a ratio where 80% of results are derived from just 20% of sources. For example, 80% of sales come from 20% of customers. Or 80% of profits come from 20% of product lines. 80:20 are good numbers to remember, but in fact this imbalance can be even more pronounced and in my experience it often is. It could be that 98% of profits are generated from just 4% of customers. The fundamental point made by such analyses is that not all things are equal; some things are much more important than others. Or we can say ‘the important few and the trivial many’. Having recognised this, we can concentrate our efforts on the important few. For example: the top few customers; the most successful products; or the most lucrative markets.

There is a tendency to want to even things out, so that the business is not quite so dependent on a few important customers. It can be scary to have all your eggs in one basket. It would be nice to have business spread equally across many customers instead of it being weighted towards a few big ones. But it just isn’t so; reality is uneven. You can fight against this tide or go with it. The important few are important for a reason – capitalise on this advantage.

Instead of directing marketing communications to all customers equally, we can focus on the most important customers. It’s worthwhile to treat these special customers separately, with their own tailored marketing messages. In fact, for the most important customers you could say something really special. They’re worth it.

Don’t just say something special to these important customers, do special things for them. In fact, build your whole business around these important customers. They will love it. And they will love your business. These important customers are at the heart of your business – and its success.

Key Points

Not all customers are equal. Some are far more important than others. Recognise this and allocate resources accordingly.

List your special customers, and then treat them especially well.

What to do next