Customers that Count
Managing Your Most Profitable Assets
Tony CramAshridge Management College
In a portfolio of customers, some will be substantially more profitable than others. These are known as the Customers that Count, and most organisations are well able to identify them. This tendency for a small number of people to account for the bulk of the value was first explored by the Italian sociologist and economist, Vilfredo Pareto (18431923). In his first work, Cours d'conomie Politique(1896/7), he observed that 80% of the wealth of Italy was owned by 20% of the population. With a complex mathematical...