Operational Keys to Implementing the 80-20 Rule

Recently, we posted about the 80-20 rule, which says that roughly 80 percent of an enterprise’s sales will come from roughly 20 percent of its guests.  This powerful realization means that you as an owner need to know who those “valuable few” guests are and how to optimize your operations to serve them well and increase their numbers.  Below are some operational keys to help you do so.

 1)    Harness the Power of Your Service Flow

In order to take advantage of the 80-20 rule, you need to know which of your guests are your regulars.  A loyalty program can be a simple way to do so, but in order to utilize it well, you have to make the program visible and easy to use for your guests.  Whether you choose a program with reporting and advanced data collection, or a simple e-mail list, make sure that you integrate the sign-ups, check-ins, or other loyalty activities with the flow of your retail store.  Guests should be invited to use the program as they move through the enterprise, whether it is by a check-in point at the door, a message advertising a promotion for loyalty program members as guests browse the grab-n-go cases, or a sign-up and reward redemption reminder at the register.

2)    Integrate Your Systems

Make sure that your P.O.S. system, loyalty program, and contact-management program work together, so that you don’t lose track of valuable information.  Integration does not need to be high-tech.  Even if you just use an email program for sending emails to regular guests, make sure that your P.O.S. has an entry to record whether e-mailed promotions were redeemed and by which guests, for example through a unique promotion code.  Another simple option is a mobile loyalty app, which can have multiple features that integrate and offer easy data reporting.  For more about mobile loyalty programs, see our recent piece here.

3)    Empower Your Employees To Be Your Greatest Asset

Train staff so they know how important building a base of regular guests is to the enterprise, and ask them for their help in doing so.  Include in their steps of service a question asking guests if this is their first visit to the enterprise and whether they belong to your email list or loyalty program.  Be sure they know what special promotions, considerations, rewards or extra services are available to regular guests and that they use them.  And when staff encounters new guests, always be sure they make a spectacular first impression by welcoming new faces and inviting them to return.

Happy implementing…TaraPaige Group.