When management is determining where to devote the company's resources in serving customers, it needs to remember that, typically, the lion's share of profits comes from the majority of their customers.

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Typically, the lion's share of profits comes from a minority of the customers, often referred to as the 80/20 rule or Pareto Principle, where around 20% of customers can generate around 80% of profits.

When Management Is Determining Where to Devote the Company's Resources