How to make the 80/20 rule to work for you…

The 80/20 rule has been doing the rounds now for many years, but what’s it all about? This rule first enunciated by Italian economist Vilfredo Pareto (hence the name Pareto Principle), states that 80% of results come from 20% of activity.

For example, practically and on a personal level, we only tend to use 20% of our clothing 80% of the time.

Similarly in a business sense, 20% of our activities in business yield 80% of our results. 80% of our complaints come from 20% of our clients, 80% of our revenue comes from 20% of our clients and 80% of our profit comes from 20% of our clients.

Identifying which 20% of our clients we are talking about can be tricky, but a little effort should identify the 20% that matter most. And a little effort will lead to outstanding results for your business.

Think about how the 80/20 rule will yield incredible results in these areas:

Employees – who are your rock stars in your business. Who are your highest performers and what can you do to ensure they achieve the very best they are able day in day out? Also, have a think about who are underperforming in their current tasks… can you move them into areas where they too will become rock stars.

Clients – Who of your clients are high maintenance? What revenue are you generating from these clients? What is it costing you to service your high maintenance clients and does the return on investment justify the effort? A proper evaluation of your client database will help you to make strategic decisions as to where to expend your energy in looking after your clients.

Markets – Too many companies try to be everything to everyone. This is a highway to a beating. Find ways to be good at what is attractive to the most profitable segment of your market. Use this as a means of laser focussing your business strategically towards what is going to generate the best results.

The 80/20 rule, if applied properly, will make your business perform at its peak and allow it to compete and even flourish in any market.

Deborah Jackson of Jaxon Marketing works with successful, responsible, professional business owners who experience peaks and troughs in their income.  She helps them to understand their marketing uniqueness, how marketing intertwines with their business objectives and goals, and how to attract the right clients.

Deborah specialises in helping her clients with their strategic marketing plans, brand identity and how to communicate their brand value so they only work with great customers, charge premium prices and enjoy profitable returns.  As a result, they become passionate business owners.

Before starting her marketing consulting business, Deborah worked in advertising, sales, and strategic marketing across a variety of businesses and industries.

Deborah helps professional business owners to improve their marketing to improve their bottom line. She develops brands and marketing strategies that attract more clients.  She offers marketing assistance which includes customised strategic marketing planning sessions, brand identity, and individual marketing mentoring programs.

Ready to struggle less and achieve more?  For assistance with your strategic marketing queries I’ve created a marketing mentoring program to help business owners attract new clients.