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Top 5 Customers!

Hoover’s May Newsletter had an interesting Sales Tip by Miller Heiman:

In virtually all companies, 5 percent of the customers bring in more than 50 percent of the business.

Quite true and very similar to the classical 80:20 Principle!

So why work on rest on the customers ?

A. Emerging Stars : Today’s small customers can become tomorrow’s Top 5 Customer

B. Derisk : If any of today’s Top 5 Customer move away, then company suffers substantially

C. Innovation, Ideas : Many small customers challenge the supplier on price, technology and other areas leading to new ideas and innovations

D. Margins : Smaller customers can provide better margins as well.

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