When shrinking down is the last option we have, how should we do it?

Pareto Analysis of the Customers
Distribution of customers by Pareto Quartiles: The largest percentage of customers (4th quartile) is also the one from which the business earns the least and receives the highest number of complaints and customer care man-hours
Pareto Analysis of the company’s products offering: only 19.82 % of the products are responsible for a whooping 80% of the business revenue
Distribution of products by Pareto Quartiles: 83.8% of the products fall in the 4th quartile. Despite the high expenses the company incurs to maintain them, their overall contribution to the company’s revenue is almost negligible.

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Phelix Juma

Phelix Juma

Founder, Techpreneur, Engineer and Data Scientist