Because about 20 percent of a typical company's customers account for about 80 percent of its sales, a business should focus its resources on keeping its best customers rather than trying to chase "fair weather" customers who will defect to any better deal that comes along.

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This statement is a reflection of the Pareto principle, also known as the 80/20 rule, which suggests that a small percentage of customers generate the majority of revenue for a company. Therefore, it makes business sense to prioritize efforts and resources towards retaining those top customers rather than expend resources on customers who are less loyal and may easily switch to competitors for lower prices or better deals.

Because About 20 Percent of a Typical Company's Customers Account