The 80/20 rule for customer profitability refers to what?
A) That most of a firm's customers are likely to be high profit customers
B) That most of a firm's efforts at retaining customers will be focused on a small group of customers
C) That most of a firm's profits are generated from a relatively small group of customers
D) That most of a firm's customers will complain about service at some point in time.

Question

Quizplus · Accepted Answer

The 80/20 rule (also known as the Pareto Principle) states that 80% of a company's profits come from 20% of its customers. This means that a relatively small group of customers is responsible for generating the majority of a company's profits. This highlights the importance of focusing on these high-profit customers in order to maximize profitability.

The 80/20 Rule for Customer Profitability Refers to What