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The 80/20 rule is a principle that applies to many different aspects of life, but it can also be utilized to maximize your marketing strategy. In this post, I will break down how to apply the 80/20 rule in marketing, so you can save time and money marketing your microbusiness.
What is the 80/20 Rule?
Way back in 1896, Italian engineer Vilfredo Pareto discovered that 80% of the land in Italy was owned by 20% of the population. Intrigued, he did more research and discovered that Italy wasn’t an anomaly; in other countries and regions, the majority of the land was owned by roughly 20%.
And so the Pareto Principle, AKA 80/20 Rule, was born.
The 80/20 rule states roughly 80% of consequences come from 20% of the causes.
And the 80/20 rule goes way beyond economics:
- In sports, 20% of athletes win 80% of the time.
- In healthcare, 20% of patients use 80% of the resources.
- In computing, 20% of the code includes 80% of the errors.
- In occupational safety, 20% of the hazards account for 80% of the injuries.
80/20 Rule Examples:
20% of salespeople are responsible for 80% of the sales
20% of customers make up 80% of all sales
20% of your time produces 80% of your results
20% of your audience creates 80% of your engagement
Once you begin to understand the 80/20 rule, you can leverage it to save time and money in marketing.
Leveraging the 80/20 Rule in Marketing:
80% of your profits come from 20% of your customers
You are not your grandma, and your customers are not your grandkids. It’s okay to have favorites {and to treat them accordingly}.
Offer exclusive offers and loyalty rewards to those who account for your the bulk of your profits.
Keep in touch with them through a strong follow-up strategy and nurture email sequence.
Beyond that, analyze that audience and use it as the blueprint for advertising campaigns and lead generation.
80% of your sales come from 20% of your products
If 20% of your catalog accounts for 80% of your sales, focus your marketing efforts on those hot sellers. Keep your hero product front and center and don’t divert marketing resources from your best-sellers to the other 80%.
80% of your conversions from come 20% of your content
The pressure to continually create fresh content can be overwhelming. And, it’s unnecessary. You don’t need more content, you need good content that provides value to your buyer persona. Analyze which of your content has the best conversion rate and use that to your advantage.
80% of your leads from come 20% of your channels
It’s tempting to be in #AllThePlaces, but it’s not necessary, and it can achieve the opposite effect. If you currently have a social presence on Facebook, Instagram, Linkedin, TikTok and Clubhouse, roughly 80% of your leads are coming from one channel. And it’s probably the channel you are most active on. Focus on the one channel where your people are.
80% of your traffic is visiting 20% of your pages
Dig into your website’s analytics to see if the 80/20 rule is in play and determine which pages are generating the most traffic. Make sure those pages are they fully optimized and draw the visitor into your sales funnel.
80% of your engagement comes from 20% of your audience.
One of the most painful {but illuminating} examples of the 80/20 rule in marketing is apparent on social media. The bulk of your engagement comes from a tiny portion of your audience. For sure it can be frustrating, but blame it on Vilfredo. Focus on the 20% who do engage and don’t try to convince the other 80% of your awesomeness.
The Takeaway
It’s a kick in the pants, but 20% of your marketing efforts account for 80% of your sales. So, focus on the activities that are the most likely to convert. Review the data discussed in this post to see which areas are the greatest needle-movers in your business and you can leverage the 80/20 rule in marketing.
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