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Pareto's 80/20 Principle
Question:
This is also known as direct marketing testing. One form of DM testing, that has prevailed since the 1920’s, and is credited with much of the success of the DM Industry’s growth, is discussed in the webpage on the line below. http://www.improvedresults.com/maxi.htm > You may find from your research, for example, that 10% of your marketing produces > 95% of the results. This would suggest discarding the 90% of marketing that > produces only 5% percent of the results and > focus on the 10% generating the 90%.
– George Wehmann, President, Direct Marketing Resources Group, Inc. 2524 Birchford Court, Raleigh, NC USA 27604 Voice: 919-231-2728 – Fax: 919-231-1299 Helping You Use MARKETING Resources… To Maximize Your FINANCIAL Resources. http://www.improvedresults.com
Response:
The 80/20 Principle by Richard Koch (March 1998 Doubleday) is an excellent guide to modern-day application of Pareto’s Law. As to personal application, I find it works very well in the services businesses, particularly in prioritizing client relationships. I have not yet been able to find a means to apply it to commodity sales to the general public (gas, beer, cigarettes, etc.), except in focusing inventory on those 20% of brands that provide 80%+ of the sales.
Response:
Henry, The 80/20 rule is that 20 percent of your customers will provide you with 80% of your profits. I don’t know what kind of business you are in, but I’ll suggest using narrowing down your marketing when using the internet. Use the internet to market to your target market. You might want to use banners in some of the most popular search enginees for example yahoo, exicite, altavista, lycos and so on. You might want to search and find out what are people looking at in the internet and use banners to market your product or service. -Araceli – Hide quoted text — Show quoted text – > Ive heard about the 80/20 split too. > Now is there anyone out there who knows which 20% of tasks will get me 80% > of my results when Im marketing on the internet? > ?????? > -Henry
Response:
Ive heard about the 80/20 split too. Now is there anyone out there who knows which 20% of tasks will get me 80% of my results when Im marketing on the internet? ?????? -Henry
Response:
>Now is there anyone out there who knows which 20% of tasks will get me 80% >of my results when Im marketing on the internet?
For the 80/20 Principle to work, you must collect the data and identify the 20% that provides the 80%. It is important to remember that the 80/20 principle is not an absolute, but a concept. You may find from your research, for example, that 10% of your marketing produces 95% of the results. This would suggest discarding the 90% of marketing that produces only 5% percent of the results and focus on the 10% generating the 90%. The best book on the market on the subject is The 80/20 Principle by Richard Koch (Doubleday 1998). I’ve never met Koch, and have no pecuniary interest in sales of his book. It is simply an excellent book on the subject.
Response:
Pareto’s 80/20 principle is something so powerful we should all be using it and don’t (I’m guilty as hell!). Because if we all apply Pareto’s principle to everything we do in business, and only work at the 20% that produces the 80%, we must get amazing results. For instance in larger sales offices 80% of the sales are done by 20%. 20% of your customers give you 80% of the business. 80% of the complaints from 20% of the customers, and so on. My question is have any of you guys had any interesting expertness to share where you have consciously or unwittingly used his principle? Mark Metcalf e-mail coaching courses: "Uncover Your Hidden Diamonds"& "New Pressure Free Subliminal Selling" We also work for accountants, consultants, etc. For more Info, FREE Newsletters, FREE Reports, and FREE Growth Assessment