Skip to main content

80/20 Rule of Marketing

Have you heard of it? Or are you aware of it? 80/20 rules, though not mathematically justified, is approximately an accurate description of the Business Rules and a reality that should not be ignored. 

It states that 80% of your business comes from 20% of your total customers. Therefore, it is suggestive to focus yourself to these 20% of your customer rather the 80% of your non-profit customers.

It sounds very unconventional that you should ignore the possibilities of business from the 80% of other customers. But logically, it sounds perfect. Why spend money on such customers that brings no business? Instead, it is very reasonable to focus your business's attention to those who really care. 

Also, this rule also extends itself to all the other domain like 80% of your complains comes from 20% of those customers which really do not bring any business. It all sounds so obvious and true.

Remember that any good rules always sounds obvious after it has been stated but it lies that it is operated or carried out properly.

There is also a saying that goes, Care about people that really cares about you.

Comments

Popular posts from this blog

Selling a Comb to a Bald Person?

Here my friend, Ashay, put it very truly to me that the marketer's most challenge is to sell a comb to a bald. First, I am not trying to justify anything here. But I just couldn't help thinking how on earth am I going to sell a comb to a bald. How? Just how? I kept pondering upon it till late night. I actually had very few options with me, the first was obviously to use Google and Find? :) But, I didn't do that. Some how I was still in confusion. Then just before going to sleep, I had an discussion with my other friend, on types of marketing on issues related to customer centric marketing. Hmm. Then some how it hit me. I went back to basic on my own philosophy, sell things that is needed. So here is a small anecdote I prepared : Sale Person   : Hello sir. How are you? Do you have a time, plzzz? Bald Person : (Almost confused and in social causality) OK OK what is it? I don't have time. Sale Person    : Here sir, do you want to by a comb?  Bald Person  : Can't you

Fearful Consumer Market

Consumer market is something, I always feared. During my engineering days, I knew it was one area where I would not find myself working. I always feared the harsh competition of the market. I worried if ever, anything I made would sustain in the market. Or how people would react to it? You can say, I feared criticism and all the yap yap of group of people, who knows only how to suggest but not to act. Thus, I kept my interest into custom projects and not related to anything that a single consumer would use, rather it was something of community service. But with changing time, I knew I had to make a plunge into the ocean of consumer market and face the competition. "Be a man! Dude" That is what I would say to myself. I knew I couldn't swim, but I had to give it a try.  Journey into the consumer market is like that of 20000 Leagues Under The Sea . There are so many different kinds of creatures around to look and be fascinated. Some are small living in tiny groups. Some are