How do you align your problem solving approach with your customer's expectations and needs?

One of the most common applications of the Pareto principle is in business and economics. Many businesses find that 80% of their profits come from 20% of their customers, products, or services. This means that they can focus on satisfying and retaining those key customers or improving those core products or services that generate most of their revenue. Conversely, they can also identify and eliminate or reduce those customers or products that are unprofitable, costly, or problematic. By using the Pareto principle, businesses can optimize their resources and increase their efficiency and profitability.

I start from our beginning, understanding that we are all made from dirt and water. Realize that we need not worry as HE will provide as even a bird need not worry. Fear no man, and know that the answer is within us. Our outcome is known before we are born, so perform every task as to please Our Father. If we are honest, humble, and caring we will have few enemies and many will help and support our solution to a problem no matter how dark it gets, if they believe and trust us to have their back. Listen, but verify, and defend your principles, for without them a problem solved will be forgotten.

However, I would also add a few caveats, such as: -It is not a fixed rule but an approximation that may vary depending on the context and data quality . -It does not tell you why the 20% of causes are more important than the 80%, or how to find the optimal balance between them. -It does not guarantee that solving the 20% of causes will solve 80% of the problem, as there may be interactions or dependencies among different causes . Always try to acknowledge these limitations. Keep in mind that it is not a rigid formula but a heuristic that can help you prioritize your problem solving efforts. You should always verify your assumptions and data, explore other possible causes and solutions, and measure your progress and impact.

It does not mean that you should ignore or neglect the other 80% of factors that affect customer satisfaction, but rather that you should allocate your resources and attention accordingly . It does not imply that all customers have the same needs and preferences, but rather that you should segment your customers based on their characteristics and behaviors. It does not assume that customer satisfaction is static or constant, but rather that you should monitor changes in customer expectations and trends over time.

Communicating your problem solving approach to your customers is not only important but also beneficial for both parties. By using the Pareto principle for problem solving and customer satisfaction, you can show your customers how you prioritize the most important problems and solutions, while gaining valuable insights and feedback from them. Communicating your approach can help you: - Gain customer insights and feedback that can improve your problem solving and customer satisfaction . - Demonstrate your expertise and credibility as a problem solver and a service provider . - Increase customer loyalty and retention by showing them that you care about their needs and expectations .

For instance, a software company used the Pareto principle to identify and fix the most common bugs in their product that caused 80% of customer complaints. By doing so, they reduced errors and crashes by 50%, increased customer satisfaction by 40%, and saved time and money on maintenance. Another example is a restaurant that used the Pareto principle to analyze customer feedback and preferences. They found out that 80% of their revenue came from 20% of their menu items, while 80% of their waste came from 20% of their ingredients. By focusing on improving and promoting those popular dishes, while eliminating or reducing those unpopular ones, they increased sales by 30%, reduced costs by 20%, and enhanced customer loyalty by 25%.