Mapping Your Top 20% to Double Your RevenueMay 06, 2021
Over the past couple of months, we have talked about the Pareto Principle (80/20 rule) and looked at Dan Kennedy’s Money Pyramid. From those important lessons, we can conclude that the top 20% of our clients give us 80% of our revenue and that only the top 20% of any market can afford to pay for our services regularly. Please read this last sentence a couple of times and really let it set in.
A continual flow of new clients is one of the most important factors in exponential growth. In fact, we talked a few weeks ago about how there are only three ways to increase your revenue – get new clients, get current clients to visit more often and get them to spend more each time they visit. Ideally, the new clients you target will be very similar to your current top 20% to optimize revenue growth.
If you want more clients who will spend like your top 20%, you need first to identify your current top 20% live. As the old proverb goes, “birds of a feather flock together.” Now, you might think you know where your top 20% live. But let’s make sure. You can pull a report from your POS computer system that gives you your top 20% of clients that give you 80% of your revenue. If you have made it a focus to gather all of your clients’ data points, you will have their addresses.
I strongly recommend you purchase the base level membership of mapalist.com (it will cost you about $19 per month). You will take a spreadsheet of your top 20% with addresses and load it into google sheets. That connects with mapalist and will place a colored pin on each home in your top 20%. Want to get really fancy? Separate retail and routes with different colored pins and add information like what they have spent over the past year on the spreadsheet.
This eliminates any questions as to where your top 20% live. Go ahead and switch over to satellite mode in mapalist and make the map 3D. Do your current clients have large homes? Do they have swimming pools? Do they have fenced-in yards? How many garages do they have? Then make a list of what I call your “Dream 20 Neighborhoods.” These are neighborhoods that you want to have full of colored dots on your map.
In most cases, you can double your annual sales by identifying and creating an irresistible offer to the homes in your Dream 20 and by filling out those neighborhoods with colored pins. We will begin talking about ways to present those irresistible offers to your target clients, but first, let’s identify the neighborhoods.
Have fun with this exercise. This is one of the most important things you can do right now! It will bring your future growth so clearly into focus that you can literally visualize it. And if you get bogged down in the tech of mapalist, we have created a FREE 7-page document on how to create your maps in the software. Email us at [email protected], and we will send it right over. Have a great week!
Stay Informed With All Of Our Latest Content
Get all of our latest blog posts delivered directly to your inbox.
We hate SPAM. We will never sell your information, for any reason.