What is your 80/20 rule? The 80/20 rule as we understand it states that 80% of your business comes from 20% of your customers or client base. My question is, why is that? I, fortunately, have a theory.
I believe that when we all started out in our business including myself. We didn’t take the time to get crystal clear on exactly what our ideal client looked like. We didn’t write it down or articulate it. So, what happens? We went out and brought on all these new customers as we just simply wanted to generate revenues and grow our company.
Over time we accumulated lots of customers and begin to realize that we accumulated some customers that we didn’t necessarily love. We also soon realized the 80/20 rule of which 80% of our business was coming from 20% of our customer base.
Why is this and how can we change it? We first have to ask ourselves are we clear on our 80/20 rule.
Here’s my thoughts. Eighty percent of people talk about what they should do, what they need to do, what they have to do, what they are going to do. Then, unfortunately, life gets in the way and they never follow through, they never execute, they simply don’t back up what they say. Twenty percent of people are the ones that step up, show up, take their guard down, open up, go outside their comfort zone and do what actually needs to be done to get them the results they are looking for. Those are the winners, those are the strivers, those are the people that make it happen. Their actions speak opposed to their words. They just simply do whatever it takes to succeed!
That’s actually our ideal client as we should want to work with the twenty percent! Unfortunately, 80% of people are not clear about where they’re going. They are unfortunately going to waste your time and shop for prices. That’s hopefully not the ideal customer you want.
To keep from falling into this trap is you have to ask yourself, are you crystal clear on your 80/20 rule? Are you crystal clear on what your ideal client looks like? Do you have it written down as so you can articulate it clearly when someone ask you what that person looks like?
I learned a valuable lesson back in 2000 as a financial advisor. When the dot.com bubble burst and the market crashed I realized that I had a book of accounts, people that were chasing returns. When the market crashed, those people went away and my clients stayed. It was then that I clearly understood the difference between accounts and clients. Clients are people that I love to do business with, that have faith and trust in me, that follow my lead. When I got clear on that, from 2000 on my business ran so much smoother.
I challenged myself to take that same mindset and game plan to my current business of coaching and I challenge you to do the same. I encourage you to get clear on what your ideal client looks like. Why? Because where your focus goes, your energy flows. When you are able to clearly articulate that to everyone you meet, and in your marketing, they will show up and you will have a business of clients you love.
My encouragement to you is, #1 Get clear on your 80/20 rule. #2 Ask yourself where you fit in this rule. Are you consistently backing up what you say? Importantly, we must always take a look at ourselves first. See where you fit in this equation, take a look at your current customer base, get clear on your ideal client, articulate that consistently in your marketing and verbalization to others and I guarantee you your business will prosper and you’ll have much more fun serving your client base.
If anyone is interested in any exercises to get crystal clear on your ideal client and 80/20 rule. Feel free to reach out.