The 80/20 Rule of Marketing

The 80/20 rule of marketing points out that 20% of a company's customers usually generate 80% of a company's gross revenue. So identifying your company's core customer base is very important. The easiest way to find this group is look at your top 20 customers. Study this group closely.

There are two strategies that can be utilized once this group is identified.

1. Design marketing programs to find and sign up more customers like the core revenue generators.
2. Develop new products and services that allow even more revenue to be generated off the existing customer base.

 

 

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