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The Pareto Principle

The Pareto Principle

in Personally Speaking

from: B2B

The Pareto Principle, named after economist Vilfredo Pareto, states that, for many events, roughly 80% of the results obtained come from 20% of the effort expended. Also referred to as the “80/20 rule,” this principle holds true not only for a variety of industries, but for marketing efforts as well. Consider the following:

  • 20% of marketing efforts produce 80% of the results
  • 80% of sales come from 20% of the customers
  • 80% of profits come from 20% of the products
  • 80% of the problems come from 20% of the customers.

By focusing more effort on your “20 percent” activities, you can eliminate a large chunk of your marketing budget and time while achieving more. For example, by pinpointing the roughly 20% of current customers that produce roughly 80% of your revenue, you can concentrate more resources on these customers and ensure their continued satisfaction and loyalty.

At Dynamark Graphics Group, we can help you identify your most valuable customers and help you develop highly targeted customer loyalty programs to keep these customers always on your side. Call today to learn more.