Ever feel overwhelmed by the
demands of new and changing marketing technologies? Longing for simpler marketing ways? Here’s a time-tested marketing truth to fall
back on: the 80/20 Rule.
Also known as the Pareto Principle,
the idea behind the 80/20 Rule is this: a small percentage impacts the vast
majority. Italian economist Vilfredo
Pareto, after whom the principle is named, found this to be true of land in
Italy in 1906: at the time, 80% of the land was owned by 20% of the population.
But marketers have found truth in
the principle, too. Eighty percent of your sales likely comes from
20% of your customers. If you haven’t
reviewed your list of top customers or donors, make it an annual exercise. Then, make those customers a priority.
Why spend so much effort on such a
small percentage of your customer base?
Because they’re the best of the best. The ones who know your organization and trust
your service. The repeat and frequent
customers who are just waiting for you to send them another offer.
But don’t let your thinking stop
there. Identifying and marketing to your
top customers is a great strategy, but it’s not the only use of the 80/20
Rule. Once you know who your top
customers are, don’t just market to them. Study them.
Examine their buying habits and their characteristics so you can find
new customers that are just like them.
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