'Rack the Shotgun': Using the 80/20 Rule to Identify Your Best Customers In this video, sales expert Perry Marshall uses a colorful story to explain how the 80/20 rule applies to zeroing in on the customers who are most profitable to your business.

By Jason Fell

Opinions expressed by Entrepreneur contributors are their own.

As it applies to sales and marketing, the 80/20 rule says that about 80 percent of your sales come from only about 20 percent of your customers.

Good to know. But how can entrepreneurs and other professionals who manage sales identify and really focus on that profitable 20 percent of customers?

In this video, sales expert Perry Marshall tells a colorful story illustrating how the 80/20 rule applies to sales and identifying customers.

It's a process he calls "racking the shotgun." To find out what he means, watch the video above.

Related:

The 80/20 Rule and How to Supercharge Your Sales and Marketing

80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More (Related Book)

Jason Fell

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Editor's Pick

Related Topics

Business News

People Are Eager to Go to Europe. But a 'Strange and Humiliating' Requirement Is Derailing Travel Plans.

There aren't enough resources to keep up with the demand — and it's causing major problems.

Business News

Tech CEO, 26, Found Dead in Suspected Murder

Pava LaPere founded EcoMap Technologies in December 2018.

Business News

Target Will Close 9 Stores Across 4 States Due to Ongoing Crime That's 'Threatening the Safety' of Customers and Employees

Target stated that it "invested heavily" in efforts to combat crime, but it just didn't work.

Business News

8 People Hospitalized on JetBlue Flight Headed to Florida Due to Turbulence

The turbulent conditions occurred near Jamaica on a flight coming from Ecuador.

Growing a Business

How to Navigate Ethical Considerations In Your Decision-Making

Business decisions often involve weighing ethics against profits. Find ways with a few tips to prioritize ethics and build trust with employees and customers.

Growing a Business

Innovation or Extinction — Why Complacency Is the Real Business Killer (and How to Foster an Innovative Culture)

Here are 10 ways to foster innovation in your company and why it's critical for your business's survival.