In the world of business, the Pareto Principle that is also known as the 80-20 rule suggests that 80% of the company’s sales are generated from 20% of its customers. In simple words, 20% of what a business does represents 80% of that particular activity’s outcome. The 80-20 rule is used in the sales and marketing ecosystem as a guide to effective business solutions.
A company usually has hundreds or thousands of contacts on clients or a prospect list for the email and social media marketing campaigns. It is important to identify the customers that have made recent purchases, large purchases, and are frequent buyers because they should be the top priority in the sales and marketing efforts.
It is very important to know where the best customers are located. There are certain neighbourhoods, communities, cities, or regions that are more lucrative compared to the rest of the market. Sales and marketing efforts must focus on these locations to boost sales.
It is also important to identify customers who exhibit a particular behaviour that signifies buyer intent. The information can be used to identify commonalities among prospective customers who are actively planning to purchase. The information can be leveraged to build on their experiences and guide them along the sales funnel.
When king kong sabri suby stumbled on the 80-20 rule, it changed everything. He learned to isolate the things he had to do to drive the business forward and worked tirelessly on those specific things. However, he never forgot about work ethics and hard work because they are the keys to success.