The Power of the 80/20 Principle in Marketing

Let’s face it 20% of our customers will bring 80% of our revenue.

So if 80% of our time is spent on customers that shop around we’ve lost a fair bit of revenue!

Well if this principle doesn’t make sense . Pls let m explain.

In 1906 an Italian Vilfredo Pareto observed & created a mathematical formula that described

how 20% of the population owned 80% of the wealth.

This principle has been widely applied to business in all areas of expertise and is simply known as

The 80/20 rule.

Trouble is most business owners hire Sales people that waste 80% of their time with customers that bring 20% of the results.

Maybe business owners should follow Pareto’s 80/20 Rule.

Which customers are in your top 20%?

Which 80% of your day is wasted on bum leads?

From which advertising is generating  80% of your leads coming?

To further discover more great reading , Richard Koch a British Entrepreneur , Venture Capitalist & Author has written

international bestsellers on this subject.

www.amazon.com/80-20-Principle-Secret-Achieving

www.amazon.com.au/Principle-Other-Powerful-Laws-Nature-ebook

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ABOUT CARLO GUZZI?

  • I have had 25 years Small Business Experience as Marketing Manager/owner of  a WA(Western Australian) based Ceramic Tile importing business
  • Worked in other various other industries such  as Real Estate , Filtration, Stainless Steel &  Giftware wholesaling  in Senior Sales roles.
  • Follow me on twitter @No1Bossfan or go to my BIZ FB page www.facebook,com/carloguzzimarketing
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Do you want to become a Marketing Giant slayer in your industry!

I don’t know about you but I’m always checking out what my competitors are doing on FB.

It’s interesting to see how I measure up against the rest.

I see myself as the underdog just like the famous biblical tale of David vs Goliath.

At first glance people will always favour the more recognisable brand.

The Goliath Case example:

But being a giant doesn’t mean your quicker, it just means your stronger.

For example one company advertised on FB they are offering WordPress courses on how

To create your own website over a weekend.

I was curious so I filled out the survey form.

One week later I get a response from that WordPress expert.

A pretty sloppy effort in the Service dept don’t you think?

David Case Example

Just like David I’m agile and quicker off my feet that way I can pivot into a more

Advantageous position.

one way I build trust with my subscribers is by offering FREE Marketing tips delivered to their inbox daily.

So when you’ve got a Marketing issue in your business who are you going to turn to?

Someone who is slow off the Mark but will more than likely charge a hefty price for

Their service

Or Someone that delivers valuable content on a regular basis with an additional

1 HR FREE MARKETING CONSULT.

Are you an underdog in your industry? If so I’d love to be able to help you to become a Giant Slayer!

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BOUT CARLO GUZZI?     

  • I have had 25 years Small Business Experience as Marketing Manager/owner of  a WA(Western Australian) based Ceramic Tile importing business
  • Worked in other various other industries such  as Real Estate , Filtration, Stainless Steel &  Giftware wholesaling  in Senior Sales roles.
  • Follow me on twitter @No1Bossfan or go to my BIZ FB page www.facebook,com/carloguzzimarketing

How to prevent your Business from being Branded ordinary!

One way is to know know the difference between Branding & Marketing?
A lot of Marketers use Buzzwords like Growth Hacking , storyscaping & culture of content etc etc.
So what I’m about to reveal today is designed to inform you that Branding is not for every small business.

So before you choose a Marketing expert ask them these 3 questions

  • ŸCan they provide you with a ROI figure from campaigns they’ve done on other similar businesses to yours?
  • Can  they provide you with any samples of their successful work for clients?
  • Do they have a back up plan just in case their Branding campaign doesn’t work?

Branding is defined as sign , symbol, logo, design that is easily identifiable to the consumer that is meant

To differentiate that sellers product to their competitors.

Marketing Is defined as the means of communicating to the end user why a particular product or brand is better
Than a rivals brand and the benefit of using that product.
So the best way to build your own business brand is by communicating effectively to your target market.

The best solution in a crowded online market place is to build your brand is via education marketing.

As a newbie on the Marketing merry go round I’m by no means sharing advice that is radical.

email marketing would have to be the most effective and cost effective way to educate your audience

Now lets do the maths.

ISP Charges  $1.00 for clicking your mouse

Add 15 minutes of your time to write an email  say hourly Wage say is $40/Hr

Your Cost so far  ISP Charges + Your Time = $11.00

Say you eventually sell $100.00 worth of goods  your ROI is a staggering $89.00

According to Danny Ivy’s new book The Audience Revolution Basically you want to avoid the old model of creating an offer and then finding a buyer is obsolete

Basically Advertising is a science and the results of various adverts must be tested first in order to find out what works best for your business.

If you enjoyed this article and would like to help a friend just share it with them

Want to find out more Motivating tips?To receive more tips you can subscribe to my daily Marketing updates at  ital2@aanet.com.au

Face Book Photo    ABOUT CARLO GUZZI?

  • I have had 25 years Small Business Experience as Marketing Manager/owner of  a WA(Western Australian) based Ceramic Tile importing business
  • Worked in other various other industries such  as Real Estate , Filtration, Stainless Steel &  Giftware wholesaling  in Senior Sales roles.
  • Follow me on twitter @No1Bossfan or go to my BIZ FB page www.facebook,com/carloguzzimarketing