Pareto’s Principle

You’ve probably heard about Pareto’s Principle. It’s the principle that 80% of results come from 20% of the population and it goes across the board with a lot of different situations. If you apply Pareto’s Principle to your business, 80% of your profits are coming from the top 20% of your clients.

top 20% of your clients

Top 20% of Your Clients

That 20% of your clients are investing a lot in you and your business.  These are your most valuable customers.  Because they invest so much in your business, it would have a big effect if you ever lost their business. The way to ensure that they continue to work with you is to make them feel appreciated. If they don’t, they will move on and invest their money with another business.

It is vital to your business that you think about the top 20% of your clients. Take a look in your financials and identify them.  Think about what you are doing to let them know that you value their business? How do you show them that you appreciate them? One thing that you should definitely be doing to the top 20% of your clients is sending them client appreciation gifts.

Client Appreciation

Client gifts don’t have to cost a lot of money but they do need to be meaningful. Put some thought into it and make it purposeful so that clients will know that you really care about them. If you’re just throwing together something, grabbing a gift basket from your local store or buying a gift card because you don’t know what else to get them, it won’t make as big of an impact.  It’s a nice gesture, but if you really want to make it meaningful and want your clients, that top 20% to feel like they are so important to you, take some time and think about some things that they would really appreciate getting.

The more you appreciate that top 20%, the more likely they will be to continue to invest in you.  Sending out a client appreciation gift isn’t really an expense in your business. It is an investment in future business, in keeping and getting more business from that top 20% of your clients.

Your intent in giving client gifts should be because you sincerely care about your clients and you sincerely appreciate their business. You shouldn’t do it to manipulate them to spend more money with your business. But often, that will naturally happen. When clients feel appreciated and valued by you as a business owner, they will keep investing in you on a long-term basis.

Client Referrals

The other thing that naturally happens when clients feel appreciated, is they tell their friends and colleagues about your business.  Not only will your business increase from long-term valued clients, it will also grow through referrals.

Make sure you’re taking care of your top 20% of clients. Let them know that they’re valued by you. Send out a little client appreciation gift every once in a while because these are the people who are bringing you 80% of your profits. If you lose one of them it can have a significant negative impact on your business. If you need help knowing what to do, schedule a call with Touch Your Client’s Heart. We know the art and science of finding the perfect meaningful gift.


  1. I love the idea of really sitting down and figuring out who your top 20% really are. We recently did something similar with a client. She had assumed she knew where most of her revenue was coming from and was surprised to find out it wasn’t who she thought it was. Great advice on how to appreciate those clients too!

  2. What a great way to apply the Pareto Principle!! Yes, genuine appreciation is appreciated and gets people remembered and brings more referrals. Excellent idea to narrow it down to top 20%.

  3. Great idea to narrow it down to the top 20%. I love your reminder to show appreciation without manipulation.

    • Barb,
      That’s a good way of putting it, “appreciation without manipulation.” I may have to us that as a title for another blog post . . .

  4. Dawn Bennett says

    I love my top 20%. I have not done individual gifts, so this is something I would love help with when I re-open.

  5. I think thoughtful gifts are so much more valuable than a gift card. My top client is very “particular” so it will take some ingenuity to give her a gift that she’ll appreciate. Thanks for this reminder! (I’m taking on the challenge!)

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