The 20-80-30 rules reflects the idea that
A) the top 20 percent of customers are highly satisfied, 80 percent of customers will recommend the company to a friend, and 30 percent are unsatisfied.
B) 20 percent of customers are unprofitable, 80 percent of customers make up 30 percent of a company's profits.
C) any new product offering will be accepted by 20 percent of the customers immediately, this figure will eventually rise to 30 percent, however, 80 percent of the customers will be up for grabs throughout the product life cycle for the product.
D) the top 20 percent of customers generate 80 percent of the company's profits, half of which are lost serving the bottom 30 percent of unprofitable customers.
E) 20 percent of the company's profits are generated by 80 percent of customers, and 30 percent of customers are satisfied.

Question

Quizplus · Accepted Answer

The 20-80-30 rule states that the top 20 percent of customers are responsible for generating 80 percent of a company's profits, and the bottom 30 percent of customers are unprofitable. It highlights the importance of focusing on the most profitable customers and minimizing expenses related to serving unprofitable ones.

The 20-80-30 Rules Reflects the Idea That