Client Load Distribution

Transcript:

Today I want to talk about a concept I call client load distribution and so basically this is a concept that I’ve kind of put together which basically allows you to have more patience and more understanding when it comes to customers and doing business and using the 80 20 rule allow us to apply some logic to the fact that some customers are going to be easy to please and very you know just smooth through the process they’re willing to pay a lot they’re willing to just be easy to deal with they’re quick and easy to get through those are the usually the 80 usually we have pretty good customers overall and then 20 of the customers are going to be really tough a headache stressful make you wish that you could just fire them get rid of them now a lot of people have the concept out there like let’s fire our customers let’s just get rid of our customers and you know in certain circumstances that may be the case that you need to do that I tend to think that that’s over hyped or used more often than it’s necessary and that you can work with these difficult clients but you need to kind of reformulate your opinions and and your beliefs and how you approach them by using the 80 20 rule of load distribution for customers so low distribution looks like this so you have a very challenging customer that’s taking up a lot of your time stressful making you do more work and in your mind you start to calculate well this customer has paid x amount but they’re taking up this much in resources and this much in time and those those don’t really equate I’m starting to spend so much more time on investing I’m starting to lose with this customer and that’s when the idea of I should fire this customer comes in well how I want you to think about that with low distribution is with that’s only 20 or less of all the customers eighty percent of the customers end up covering for that so it’s a lot like in a gym like how gyms work you know gyms if every single person who had a gym membership went to the gym at the same time the gym would fail it would absolutely everybody would quit their membership because there’d be no equipment it would be overcrowded but Jim’s work by selling over selling their capacity by a lot they may have 500 hundred and a thousand two thousand three thousand memberships a month going on and at any given time only a few hundred people show up to the gym and that’s the way it works for them where they have way more customers that are not using the service that’s their eighty percent and only twenty percent are coming in that are heavy users that are coming in and taking up the equipment or asking lots of questions or causing problems things like that so it’s it’s all about the way that we frame it and most successful businesses have figured that out you know Starbucks doesn’t fire customers just because someone goes in there and it’s difficult makes a video about how they’re being a Karen in a Starbucks that customer is not banned for life from Starbucks they’re welcome back to another Starbucks very rarely uh you know there could be some occasions where some does get banned for life but very rarely someone’s banned for life from The Establishment unless they really do something egregious so I I say all this to say if you’re getting stressed out by a certain customer and they’re really wearing you down you’re starting to contemplate well is it really worth it so they just get rid of this person well re-contextualize your relationship with that person and realize that 80 of the people who are so easy to deal with and don’t take a lot of your time are making up for the person who takes a lot of your time and that bounces out reapproach it with a fresh head fresh attitude and just push your way through until you’ve pleased that Customer because trust me pleasing customers even the difficult ones is the way to become a huge successful brand ultimately if that’s your goal to make a very successful business that has a legacy behind it you want to please as many people as possible so this is Joe Phil with Sky Point Studios I hope this has been helpful for you definitely comment down below if you have your own uh your own approach to this philosophy if you believe in it or if you don’t believe in it I’d love to have a discussion about it and thank you so much as always for watching my videos and I will see you on the next one.

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