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.

Face Book Photo


  • 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

2 thoughts on “The Power of the 80/20 Principle in Marketing

  1. Interesting how that 80/20 rule pops up in different aspects of business and marketing. For example there’s one related to social media content that says it’s best to offer 80% useful non-promotional content and make 20% overtly promotional.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s