Quad 3 is home to your B customers; which make up 80% of your customer base and sit outside the top 20% (your A customers). While they aren’t as valuable as your Fort, many of them still purchase A products and generate meaningful revenue.
The challenge with Quad 3 is balance: don’t overserve, but don’t neglect.
The Transactional Approach
Quad 3 follows a simple rule: “Sell only transactionally.”
For you, that means serving these customers efficiently, with minimal resources. They represent worthwhile business, as long as the cost to serve stays low.
That’s why B customers typically don’t justify dedicated sales reps or high-touch consultative selling. Instead, they’re best managed through scalable channels such as:
- Digital sales platforms
- Automated systems
- Volume-based pricing
- Minimum-order policies
In client engagements, we’ve seen leaders who made just one of these shifts reclaim margin overnight. Serving Quad 3 with efficiency preserves profitability while freeing your team to protect the Fort.
Beyond the Blunt Instrument
A purely transactional approach will keep Quad 3 running, but it misses the hidden opportunity. Remember: by definition, 80% of your customers live here. That sheer scale makes it fertile ground for selective investment.
The key is segmentation within Quad 3. Identify the best-performing B customers—the ones with growing demand, recurring purchases, or untapped potential—and treat them differently.
Strategic actions might include:
- Cross-sell or promotional offers tied to A products
- Incentives for larger orders
- Modest recognition or perks that encourage loyalty
In practice, we’ve seen companies elevate Quad 3 customers into Quad 1 with surprising speed. When you identify the right “graduates” and give them a path, tomorrow’s A customers are built here.
The Bottom Line
Quad 3 may be transactional, but it’s also where hidden potential lives. Managed efficiently, it preserves profitability. Managed strategically, it becomes a conversion zone where volume turns into value.
We’ve seen this play out in manufacturers, distributors, and service companies alike: once Quad 3 was disciplined and segmented, leaders discovered new A customers hiding in plain sight.
At The 80/20 Institute, this is precisely the kind of transformation we guide CEOs through every day.
Book a Discovery Call today to uncover the hidden gems in your Quad 3. We’ll help you convert the best B customers into tomorrow’s A customers and turn untapped volume into lasting profitability.