Which of the following statements is true about account classification and resource allocation?
A) Customer management is simply a time management issue.
B) As a rule, 80 percent of the sales in a territory come from only 20 percent of the customers.
C) Salespeople should avoid classifying customers on the basis of their sales potential.
D) All customers have the same buying potential, just as all sales activities produce the same results.
E) None of the above statements about account classification and resource allocation is true.

Question

Quizplus · Accepted Answer

This is a commonly recognized principle in sales, known as the Pareto principle or the 80/20 rule. It suggests that a minority of customers often account for the majority of sales in a given territory or industry. Knowing which customers belong to this group can help salespeople prioritize their efforts and allocate resources accordingly. Options A, C, and D are all incorrect or misleading statements about customer management and resource allocation. Therefore, E is also incorrect.

Which of the Following Statements Is True About Account Classification