Pareto Principle (80/20 Rule) in Marketing
Vilfredo Pareto, Italian economist, contributed greatly to both
marketing and business thinking and left us with some important postulates to
consider in everything we do.
His theory and research, provided powerful insights for us to
take further in exploring our ways to higher leverage, better outcomes,
solutions, results. He originally analysed distribution of national wealth in
US. Then we took his results and found transferability of his ideas and
analysis to other significant areas of our lives...
V. Pareto has elaborated and validated that the largest portion
of important results are merely steaming from very few activities we do in our
lives. It all boils down to following:
·
80% of results come from 20% of
activities.
·
80% of profits come from 20% of
clients/customers/activities
·
20% of activities produce 80% of
satisfaction
·
20% of people hold 80% of wealth
·
and so on and so on...examples are
everywhere
You, see if everything is so easy quantifiable why we spend
so much time, efforts, energy, resources on minor, irrelevant, waste
activities, with people that cause us headaches, problems, negativity, etc?
And yet, without answers to this one. We know what matters but
somehow pretend that something else is more important, urgent, with the faster
payback, etc. We search for certainty, quick wins and solutions where so many
before us seldom found their lucky breaks...
It all comes down to determining our core priorities, highest
values, our "big rocks".
Values drive behaviors, that force us to act or
chose not to. Values determine everything. Performances and results steam from
clarity.
So the question is:
If we know what makes us
successful, what matters and what produces result - why we are not focusing on
it unreservedly?
In life and business you must play full on, 100%, no excuses.
You must be prepared to get your hands dirty and stick to the plans. Persevere.
Nothing will be given to you. You must deserve it. And you
deserve it when you play within your areas of strengths.
When you eliminate waste and concentrate on
your CORE. When you make your CORE stronger, better, more
appealing, profitable, desirable...
Then you have something special, that soon becomes your
force... You have vital few vs trivial many activities to focus on. And
when you focus on truly important, everything else is irrelevant to your
prosperity. Everything else is marginal...
So, concentrate on 80/20 rule. Examples are all around you. You
just need to recognise and apply them to your favor.
