This is the basis of business decision making logic.
When to make what moves and when to market what to whom.
There is an old theory that is widely accepted that says 80% of a company’s’ income comes from 20% of the company’s’ customers.
This is known as the Pareto Principle or 80/20 Law.
This 80/20 concept seems to permeate almost all business interactions and therefore is a good starting point for making business decisions of where to spend the bulk of a company’s’ efforts and energy for the best ROI (Return On Investment).
A high ROI should be the goal of any business venture.
In some cases the definition of that ROI may not be equitable to Dollars but to some intrinsic such as company goodwill with a ROI as sales at a later date. Charitable work would fall into this category, as might extra employee benefits.
Collecting, Quantifying, Storing in a database, Modeling and Analyzing business data makes business decisions possible that are driven from your company’s experience and customers as well as industry trends for future planning Forecasting.
This section will try to put forth the basics of this process and recommend tools for smaller companies and larger budget companies.