What You Need To Know About The 80/20 Rule And How It Can Help Turn Your Business Around
If you haven’t heard about the 80/20 rule, I dare say you’re kinda late to the party. It’s like getting to a party just about the time when half the crowd has been served, but have no fear better late than never.
You see the 80/20 rule or Pareto principle was coined after the Italian economist Vilfredo Pareto in 1896 who stated in his publication that 80% of the land in Italy was owned by 20% of the population.
Richard Koch, who later took the same principle and applied it in business management went on to add the most profound insight that has changed so many businesses and yours is no different.
Here’s the bomb… and I’m going the marketing route.
80% of your sales come from 20% of your customers.
And you can literally apply this in every phase of your business and see it work. I didn’t take this too seriously until I looked at most of the promotional emails we send out on a weekly basis and here’s what I found out:
- About 80% of our opens we got from emails sent out came from 20% of our list.
- About 80% of clicks we got from our emails sent out came from 20% of those that opened.
- About 80% of those that eventually bought through emails came from 20% of those that clicked on the link in the emails sent out.
Don’t take my word for it, try it and here’s what you might find out:
- About 80% of your income comes from 20% of your activities.
- About 80% of your all business activities are done by 20% of your staff.
- About 80% of the results you get come from 20% of your marketing activity.
- About 80% of your most productive work is done in 20% of your time.
- And so much more
Now, what this really tells you is that your real job is to figure out 20% in everything you do as a business owner and don’t settle till you get it.
This secret is what most of the top organizations used to rise to the echelon of their industries.
A brilliant example is Instagram. Instagram had only 13 employees working when they were approached by Facebook to be bought for a billion dollars, by then Instagram had about 30 million users in the 3 years they got started.
Think about it for a minute…
The point here is, you can get more work done in less time if the right strategies are employed. It has been used to scale the businesses of many successful Fortune 500 companies. It has also been used to get rid of the bad sauce (employees with no results) within an organization.
While it is good to admire many of this big organizations from a distance, it is also good to understand the simple principles that forged their growth process and implement it in your business so you can also experience the same result.
The 80/20 principle will help you get more done in less the time even with limited resources. And, it is one of the many business growth hack techniques you need to have to scale your business and take it to the next level.
It also helps you see how well the different digital marketing strategies are is working for you, what to discard and how to improve on the ones that are bringing new customers, more sales and repeat sales. For me, I think this is epic.
There are all sorts of ways you can improve your sales and marketing approach. But, never forget that most of the time, you will get 80% of the results from 20% of the work you put into it. So make whatever strategy you are implementing count.
Now it’s your turn.
What’s your #1 question when it comes to the Facebook Pixel or Facebook Ads?
Better still you can ask the question directly after going through this short webinar that talks about how you can effectively and efficiently manage the 80/20 rule to improve your sales and marketing activities. Click here to watch it for FREE. We have a gift for you on the inside.
And that’s it.
I do have something else for you…
At our Business Growth Acceleration Workshop, we will teach and help you build your very own customized Digital Marketing Success Game plan and how to work it according to the 80/20 rule.