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Top Market Strategy by Elizabeth Rush Kruger

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Abstract

Research verifies that the 80/20 rule summarizes the stable relationship of inputs to outputs—including the impact of customers on the profit of a business. According to this universal law, a business can predict that the most profitable 20% of its customers generates 80% of its profit from customers and that customers in this top market segment are 16 times more profitable than customers in the bottom market segment. Thus when a business replaces all customers in the bottom market segment with new customers in the top market segment, the business can expect to quadruple its profit from customers.

Virtually any business can achieve this amazing outcome by fully implementing the three steps of a top market strategy:

  1. Segment customers ...

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