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The 80/20 marketing rule

This ratio and its applications can have a major impact on how you do business.
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A strategy that Eric Ladines Villarama, a licensed guerrilla marketing master trainer, recommends for  startups launching their own marketing campaigns is the 80/20 rule. “There is a world of difference between efficiency and effectiveness, and it’s in that world that guerrillas flourish. They are well aware of the power and omnipresence of the 80/20 rule and have probably read Richard Koch’s book, The 80/20 Principle, because even its subtitle—\\\'The Secret of Achieving More with Less\\\'—is guerrilla through and through. It dramatically emphasizes the effectiveness that can be gained by simplicity.”


[related|post]This ratio and its applications can have a major impact on how you do business. “Even guerrillas don’t hit the bull\\\'s-eye all the time, but at least they direct their energies towards learning … that all customers are not created equal, and that 20 percent of them most likely account for 80 percent of profits,” he says. Indeed, the 80/20 rule teaches simplicity, and it provides you with a wider view of life, not just business. Villarama cites the following examples:


• 80 percent of what you achieve at work comes from 20 percent of the time you spend working.
• 20 percent of a company’s products usually account for 80 percent of its sales, and 20 percent of its employees contribute to 80 percent of profits.
• 20 percent of criminals account for 80 percent of crimes.
• 20 percent of motorists cause 80 percent of accidents.
• 20 percent of your carpets get 80 percent of the wear.
• 20 percent of your clothes will be worn 80 percent of the time.
• 80 percent of traffic jams occur on 20 percent of the roads.
• 20 percent of computer users purchase 80 percent of software.

Knowing this, your task now is to find out the following:
• Which 20 percent of your marketing is motivating the most sales?
•Which 20 percent of your customers are producing 80 percent of your profits?
• Which 20 percent of your prospects are most likely to become customers?


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