1906.

For those who prefer “tried and true” and avoid the latest management fads, how about one that has lasted the test of time for nearly 120 years?

That’s when Vilfredo Pareto, an economist in Italy, showed that 20% of the population owned 80% of the land. Later popularized into the Pareto Principal, it shows that 80% of most company’s sales comes from only 20% of the customers.

Yet too many companies today ignore this business reality. Sales people and customer success teams almost never recognize the effort (i.e. cost) to obtain and service small accounts. Sometimes the prices for the products/ services are the same (or lower) for small customers as they are for larger customers. “Additional benefits” – e.g. custom reporting, regular acct manager meetings, free expedited services, etc.– that are usually reserved for the largest accounts can sometimes be offered small accounts as well.

The result? Massive differences between profitable accounts and unprofitable ones.

Yet which accounts make you money and which do not? And what do you about it? The answers aren’t easy, but the upside can be substantial. We can help.