The 80/20 Rule

Why you don’t want to ignore the 20%

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The 80/20 Rule

The Pareto principle, also known as the 80/20 rule, says that roughly 80% of the effects come from 20% of the causes. You’re probably more familiar with the business version of that rule which says roughly 80% of your sales come from 20% of your clients.

But Don’t Forget the 80%…

The other 80% of your clients that remain are important too. You won’t want to ignore them! Why? Because that 80% of your customers are providing 20% of your sales, and:

  • 20% is still a big number; big enough that you’d miss it if it were gone! Those customers that provide the 20% of your sales may not command the full attention of your marketing budget, but they’re still driving sales your way.
  • What if a high-value customer leaves you? You’d have to scramble to fill the gap, and if you’ve ignored your replacements (or the other 80% of your customers), they may not be too willing to step into that group of 20% for you.
  • Remember, your competitors are focused on the 20% too. That leaves a big, untapped market with the 80% that remain!

Reversing the 80/20 Rule

So, don’t ignore the 80%!

Social media marketing is low cost marketing with few risks and enormous potential. It is the perfect way to stay connected with all of your customers, including the often overlooked 80%.

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