What's Your Most Important 20%?
(Part 2 of 2)
In my last ezine article at http://www.marcystahl.com/ezine/Ezine-WhatsYourMostImportant20Percent-2011-8-12.html,
I introduced the Pareto Principle, which states that 80%
of the effects come from 20% of the causes. Consider your
clients: do 80% of your sales come from 20% of your clients?
If you're a direct seller, do 20% of your team members produce
80% of your team's sales or provide 80% of your team's recruits?
 The
20% of the causes, which create your sales, recruits, or
whatever results you value, is sometimes referred to as
your "vital few" and the other 80% of your causes
as the "trivial many".
How can this help your business? When you
recognize that there is ALWAYS an imbalance between your
time and energy, and the results you receive, you can stop
treating all your efforts (or customers or team members)
as equally important, and then zoom in more on the specific
efforts that will make a difference.
Let's start by asking yourself this: In your business,
what are your vital few and your trivial many?
To get the answer, divide your customers into 3 groups.
If you're a direct seller, repeat this exercise with your
team members.
- your vital few (your best or most ideal customers) who
generate most of your sales,
- the bottom (those who are a problem, no-shows or never
buy),
- and put everyone else into a middle group.
First, make sure that you are consistently and
frequently in touch with your top 20% - of your customers
and/or your team members. This group is giving
you 80% of your results. Are you servicing them –
providing them with information, opportunities, special
deals, training, whatever they need – on a regular
and consistent basis? Is there more of anything they need?
Alternatively, can they still perform at their current
high level with less of your involvement? The vital
few are already at a high level that’s probably close
to their peak ability. If they are performing at the 89%
level already, will it help you to get them up the last
bit from 89% to 100%? Probably not. On the other hand, if
it WILL help you as well as them to lift them up even more,
then spend more energy with them.
Next, look at the bottom group. Recognize
that they are in the bottom by their choice. You’ve
reached out to them (if not, then hold the horses! The rest
of this paragraph doesn’t apply to you!). They’ve
said: No thanks. Until they have some motivation
to change, they are going to stay in the bottom group.
Can that motivation to change come from you? Probably not.
For now (not necessarily forever) – mentally release
these people from any expectation. Do not expect any action
from them.
If they show up to participate and surprise you, great!
Anything automated that you do to stay in touch with them
is a good choice for you, as it requires minimal effort
on your part.
For example, keep them on your mailing list. When it comes
to them taking action, the ball is now in their court.
Now, let’s focus on the middle group. Most
likely you can get more results (profits, recruits, whatever
result you’re looking for) by increasing your activity
with this group. Why? The vital few are already
at or near their maximum potential, so you likely can't
get more results from them without expending a lot of effort.
The bottom group has repeatedly said No to your prior offers,
so they’ve already shown that their attention and
energy is elsewhere. The middle group probably has people
in it who’ve said Yes once (or more) to you, but they’ve
also said No once or more. So this group has demonstrated
the potential to be attracted to you AND the potential to
participate in whatever you offer.
What can you do to engage the middle group MORE?
Do they need to get more excited about your offer? Do they
need more education about your offer? Do you need to reach
out to them in a new way (social media, video, snail mail)?
Because there is an imbalance in the relationship between
your causes and your effects, that means that all of your
time is NOT created equal. One/tenth of your time will not
yield one/tenth of your results; it may yield much more,
or much less.
That means that it's crucial to look at what is creating
80% of your results, and then consider what else you want
to do to increase those results even more!
The great news, in my philosophy, is that there is always
MORE you can achieve in your business. If you want more
clients or more team leaders, that is entirely possible.
The universe is ABUNDANT and there is always more that you
can receive.
CALL TO ACTION
As an entrepreneur or direct seller, numbers are
your friend. When you know your numbers, then you know what
needs to change.
Do the sorting procedure above - I think you'll be surprised
at how much of your business results come from a very small
group.
Once you know that, then you'll be on firmer ground as
you consider where to spend the next bit of your time and
energy. Should it be the vital few or the middle group?
If this is feeling overwhelming and you're struggling with
effective use of your time (for example, spending lots of
time on Facebook - you know who you are :-) ), then it may
be time to get some outside support and accountability in
your business. My work is designed to help women entrepreneurs
and direct sellers move OUT of struggle and lack, into success
with ease.
Sound good? You can connect
with me via email and we'll easily schedule your personal
Success Session.
My expert mentoring, faith in you, support and accountability
make a huge difference in my clients' lives.
Here's how I helped my client Leah, who started in a state
of ambivalence and ended up as the top seller in her company.
"Before I started working with Marcy, I was in
a state of ambivalence and not confident in my own decision
making. I was stuck and not moving forward in many areas
of my life. As a mom and an entrepreneur, I was really confused
about how to achieve what I wanted. I was attracted to Marcy
because she really listened and gave me exactly what I needed
to hear. She always says the right thing at the right time.
She is so in tune with my goals and knows my personality
so well, that the solutions she has given me as well as
new insights that have launched me forward are like going
to a master tailor and having the perfect suit made. Because
of our sessions together, I have rediscovered my passion
and purpose and I have had some life-changing shifts that
have had a very positive impact on and gave me back my enthusiasm
and drive.
As a result of our work together, I now feel more confident
and I love what I do. I was just honored as tops in sales
with my company and a year ago that would not have happened.
I'm in a new place in my life, no longer indecisive and
fearful, but committed and confident. Thank you, Marcy!"
Leah Jackson
Advisor, BECOME
© 2011 Marcy Stahl
WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You
can, as long as you include this complete description with
it:
Marcy Stahl motivates women entrepreneurs to move from
having only a trickle of clients to an abundant full flow
of more clients, more money, and more decision-making power.
If you're ready to empower yourself AND boost your business,
if you want to share YOUR passion with more people, schedule
your free 45-minute Marcy Stahl Success Solutions Session
by clicking here http://www.marcystahl.com/contact-marcy.html |
Wow!
Has the summer flown by for you too?! I finally took a close
look at my calendar and picked my vacation week and location.
I'm happy to report that I'll be spending a week around
Labor Day at the beach in Wilmington, North Carolina, which
is a new spot for me.
