FIVE OPPORTUNITIES YOUR BRAND IS LEAVING ON THE TABLE
While you may have never heard of the Pareto Principle, it is likely you are familiar with the idea of the 80/20 rule. It originated with the observation that 80% of a society’s wealth was held by 20% of its citizens. The same ratio can be seen throughout nearly every facet of life.
As base knowledge goes, it is important to know that 80% of a retailer’s gross sales come from their top 20% customers. Companies that take the time to analyze that data further find a truly staggering bit of intel: less than 1% of customers are driving between 70 and 90% of overall revenue.
Not only does putting 80/20 into Full Effect make sense in customer outreach, but it also offers myriad avenues to boost your brand’s bottom line.
Cultivate Your Landscape
Not only can the 80/20 rule help you hone in on your most loyal and productive customers, but it can also highlight trouble spots. Adhering to the same principle, 80% of your brand’s complaints, returns, and headaches come from a mere 20% of your customers.
How much of your time and how many of your resources are tied up handling unhappy buyers? (Here’s a hint: too much.) Focus on those that lift up your brand, that are loyal and loving. Give these dyed-in-the-wool customers even more of your attention, as they are the ones who deliver nearly 90% repeat purchase rates.
Get Your House In Order
Generating revenue is clearly the most direct route to business success. The opportunities embedded within 80/20 in Full Effect create pathways to massive reductions in overhead and operational costs, as well.
Who are your best resources? Your top sales people? Your stand-out customer service experts? What if you could free them up to manage your most pressing needs? Imagine the ways in which they could grow, given more of the one thing we have not managed to reproduce: TIME.
90% of global executives who use data analytics report that they improved their ability to deliver a great customer experience. The benefits and growth opportunities go both outward to your customers, and inward to your organization. Everybody wins.