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.