80/20 rule
Most of the result comes from a minority of the causes: a few customers, products or fixes carry most of the value. The first cut in any analysis is finding which few.
80/20 rule in practice
An associate sorting Hanil’s customer list quickly saw a handful of accounts driving most of the volume, so the team built the whole diligence workplan around understanding those few relationships first.
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| Share of all customers | Share of total sales |
|---|---|
| 20% | 80% |
Terms Related to 80/20 rule
Gap analysis · Benchmarking · Customer concentration · All of the glossary