The 80-20 Rule, and Being Truly Effective in Your Business
There is a world of difference between efficiency and effectiveness, and it's in that world that successful marketers flourish. They are well aware of the power and omni-presence of the 80/20 rule.
While even highly successful marketers don't hit the bulls-eye with all of their marketing, at least they direct their energies towards learning which 20 percent of their marketing generates 80 percent of their sales.
Just knowing this to be true is a compelling reason to learn where each of your customers learned of your existence, to recognize that all customers are not created equal and that 20 percent of them most likely account for 80 percent of your profits.
The 80/20 rule teaches you simplicity and applies to more of your business than marketing, and more of your life than business:
80% of what you achieve at work comes from 20% of the time you spend working.
20% of a company''s products usually account for 80% of it's sales.
20% of the company's employees contribute 80% of profits.
20% of criminals account for 80% of crimes.
20% of motorists cause 80% of accidents.
20% of your carpets get 80% of the wear.
20% of your clothes will be worn 80% of the time.
20% of the computer users purchase 80% of the software.
As a marketer, your job is to find which 20% of your marketing is motivating the most sales - which 20% of your customers are producing 80% of your profits, and which 20% of your prospects are most likely to become customers.
When you discover which 20% of your customers are responsible for 80% of your sales, focus on keeping them happy. This will increase the amount of business you do with them, and help you tap their referral power, because they are satisfied customers. Paying more attention to them reduces your marketing budget because you can pay less attention to the 80% who only motivate 20% of your profits.
Once your mind has absorbed the full implications of the 80/20 rule, consider applying it in other ways: celebrate exceptional productivity rather than raising average efforts. Look for short cuts. Be selective more than exhaustive. Delegate and outsource as much as possible. Target a limited number of goals and focus like a laser beam upon them.
Because you aspire to be an effective marketer, don't do these things in a hurry. Patience will enable you to spot the areas that need changing, then to implement the changes so that humanity remains part of the modus operandi. Fast isn't beautiful. Big isn't beautiful. Small isn't beautiful. It's simple that is most beautiful, if you're an 80/20 kind of marketer.