CFO Edge Logo
  Home > Resources > 80/20 Rule Article  
     
 

How to Apply the 80/20 Rule to Your Business

 
  William K. Thorpe, Partner, CFO Edge, LLC  
   
  Open as PDF Open the entire article as a PDF  
     
  Article Summary  
Applying the 80/20 rule to profitability and customer segments, conventional wisdom has it that 80 percent of an organization’s profits are derived from 20 percent of its clients.

Successfully applying the 80/20 rule is grounded in clear identification of profitable customers, and - with this identification - it becomes possible to align strategies and resources in ways that enhance customer service and customer satisfaction for the most profitable segments.

Reviewed in this article are both the types of objective data and the subjective factors requiring analysis in order to determine profitable customer segments.

As they undertake a profitability review of their customer segments, executives leading Los Angeles and Southern California companies can benefit from talking with a provider of CFO services.

A former enterprise CFO brings to the discussion a proven track record identifying, accessing, and leveraging the right data sources; assessing hard and soft costs of customer segments, and recommending new ways to work with segments to improve both profitability and customer satisfaction.

  Open as PDF Open the entire article as a PDF  
     
Subscribe to CFO Inside Edge

Our monthly newsletter delivers first notice of new white papers and articles plus remarks on performance challenges and solutions. View past issues and subscribe.

 
 
 
CFO or Controller: What's Right for Your Business?
White Paper
CFO or
Controller:
What's Right
for Your
Business?
Outsourced CFO Services
White Paper
Outsourced
CFO Services
Performance Measurement
White Paper
Performance Measurement
Strategic Planning & Forecasting
Brief
Year-End Strategic Planning & Forecasting
Planning a Business Exit White Paper
White Paper
Planning a
Business Exit
 
CFO Edge Blog CFO Edge on Twitter CFO Edge on LinkedIn
 
Intuit Certifications