How to Fire Your Customers
After Quartile Analysis, What's Next?
Quadrant Analysis is the next step of the 80/20 consulting process. Quadrant analysis is a foundational 80/20 tool that helps our clients create profitable revenue growth, by focusing on what matters most. Quadrant Analysis shows the strategic intersection of customers and products by using four different segmentations.
Quad 1: The Fort - Both customers and products yield 80% of your revenue. High-volume customers are buying high-value products.
Quad 2:Necessary Evil - High-volume customers buying low-volume products.
Quad 3:OK, but could be great - Low-volume customers buying high-volume products.
Quad 4: C.R.A.P - Low-volume customers buying low-volume products. This quad is called C.R.A.P. because you "can't realize a profit" in this quadrant.
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What to Expect of Quadrant Analysis
When quadrant analysis is used correctly it will do four things.
- Guide the simplification process.
- Drive 80/20 decision-making.
- Show the opportunities for improvement.
- Lead to significant profitable growth.
Keep in mind, segmenting your customers and products into quadrants is just one of the analytical steps of 80/20. Quadrant Analysis is extremely helpful but will not change your business alone.
Marc Fooksman is a Vice President & 80/20 Expert at Strategex. He has over 25 years of experience in leadership and 80/20 execution.
Contact us for help regarding Quadrant Analysis or guidance on the next steps of 80/20. Strategex has a team of 80/20 Experts (with decades of experience) who are happy and eager to help.
Professional 80/20 Expert on a closed course. Do not try this at home.
The information in this recording is an introduction to 80/20. We encourage you to run your data, but please don't try to implement 80/20 alone. Trust us. It takes a couple of decades to become an 80/20 master. Top 80/20 CEOs turn to us for support for a reason. We're here to help whenever you're ready to make a transformation that yields explosive results.
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