(No. He is not a clothes designer.)
He’s the Italian economist who found that that 80% of the land in Italy was owned by 20% of the population.
…and that’s the origin of the 80/20 rule.
…and what does that mean to retail stores and restaurants?
80% of your business comes from 20% of your customers.
Just think about it. All restaurants and retail stores have regulars. These are people that come back so often that your 20% of regular customers might actually account for 80% of your sales and profits.
Shouldn’t these customers be getting first class treatment? Shouldn’t you know the names of your best customers? Shouldn’t your staff be able to identify your best customers?
As the manager or owner of a business, shouldn’t you personally greet your best customers? How do you identify your best customers? That’s one of the reasons why you have a Point-of-Sale system. Use it!
Going further, 4% of your customers bring in 64% of your sales and profits.
No. This does not mean that you should ignore the remaining portion of your customers. However, if you can devise a system to cater to your best customers, you can train your staff to actually treat even the remaining customers in a similar fashion.
Here’s a link from Forbes Magazine that can help you substantially increase your sales: