80:20 case study – Mind Your Whales

 

  1. This manufacturing company had one huge profitable whale who gave them 61% of overall profits.
  2. This huge whale customer wanted a higher level of service than they were getting.
  3. The way the manufacturing company was structured all customers got a similar level of service.
  4. This huge whale was not happy with this level of service and they took their business elsewhere.

 

Main lessons from this case study

A. All customers are not the same and treating them the same is a big mistake.

B. An average whale is worth 16 times a sardine.

C. Whales need and deserve a higher level of service than sardines.

D. Talk with and survey your whales to ensure they are satisfied with your product/service and that there are no issues that might cause them to move elsewhere.

E. Never feed a sardine when there is a hungry whale waiting to be fed.