The 80/20 rule says that only 20% of the results you want will come from 80% of your marketing efforts. The 80/20 marketing rule is often used to help business owners focus their marketing efforts on the activities that bring in the most money. This article will explain what is the marketing 80/20 rule and show you how to use it for your business.

What Is The 80/20 Rule?

The 80/20 rule is a simple idea that can be used in many different situations. The basic idea is that 80 percent of results come from 20 percent of actions. This rule can be used in more than one way in marketing.

The 80/20 rule is a good way to make decisions about marketing. If you understand how this rule works, you can better use your resources and get better results from your marketing efforts.

80/20 Rule Background

The 80-20 rule, which is also called the Pareto principle and is used in Pareto analysis, was first used to describe how wealth was distributed in Italy at the turn of the 20th century. It was first used in 1906 by Vilfredo Pareto, an Italian economist best known for his Pareto efficiency ideas.

In the 1940s, Dr. Joseph Juran, who was one of the first people to study operations management, used the 80-20 rule to control quality in business production. Focusing on and fixing the 20% of production problems could improve the quality of a company as a whole.

Uses Of The 80/20 Rule In Marketing

Allocating Resources

Using the 80/20 rule, marketers can decide where to put their resources by giving priority to the most effective channels. For example, if they know that 20% of their customers bring in 80% of their income, they can focus on bringing in and keeping these high-value customers.

Setting Priorities

One can also set priorities by using the 80/20 rule. By figuring out which 20% of activities bring about 80% of the results, marketers can focus their time and energy on the most useful tasks.

Measuring Results


The 80/20 rule can be used to figure out how well marketing campaigns are doing. A campaign is considered to be successful if it brings in 80 percent of its leads with only 20 percent of its budget. It isn’t as successful as it could be if less than 80% of its leads come from 20% of its budget.

Core Principle

The 80-20 rule is based on figuring out what an organization’s most valuable assets are and making the most of them. For example, a student should give the most time to the parts of a textbook that will help them the most on an upcoming test. This doesn’t mean that you should ignore the rest of the textbook. If you understand how this rule works, you can better use your resources and get better results from your marketing efforts.

Discover Your Best Customers

Your website, emails, and social media marketing have probably added hundreds or thousands of contacts to your client and prospect lists. Keep track of which customers just bought something, which customers buy from you often, and which customers bought a lot.

Make them a top priority for your sales and marketing, and use the information about their customers to find and bring in new ones.

Locate Your Customers Geographically

Check your POS platforms for trends, paying special attention to where your best customers are coming from. Some neighborhoods, areas, cities, and regions will be much more profitable than the rest of the market as a whole. Then, you can use this information to improve how you sell and market in these areas.

Identify Customer Niches

During the sales cycle, you are likely to meet customers whose actions show that they want to buy. Use this information to find out what active shoppers have in common and how you can build on their experiences to move them further down your sales funnel.

Deal With Difficult Customers

Whether you like it or not, you will have to deal with customers who are hard to please or too demanding. They will test your patience and slow you down by asking the same questions or making the same requests over and over again.

If they can call you whenever they want, that means you are not setting clear goals or being firm about what good customer service looks like. Check out how these customers buy things. Are they in your top twenty percent of people? You might be wasting time talking to and helping customers who aren’t worth your time and effort in the long run.

Setting reasonable expectations is the best way to deal with customers who waste time.

Delight Your Best Customers

Some of your customers will always buy a lot from you, but you can’t take them for granted. Don’t forget about your best customers while you’re trying to get new ones or deal with difficult ones. Keep in touch with your best customers all the time and give them great service.

By talking to them on a more personal level and looking for more ways to do business with them.

Watch How Your Best Salespeople Work

Take note of the top 20% of the salespeople in your company. These are the people on the team who are best at closing sales or making customers happy.

You should use the traits and methods of your best salespeople as a guide for putting together more teams and training the rest of your sales team.

Manage Your Operational Costs

Cost management has more than one purpose. It saves money by stopping people from doing things that don’t help, and it helps keep budgets in order. You might decide to fire underperforming salespeople and increase the daily meal budget for the remainder of your team. This would make your sales team more productive and efficient.


Final Thoughts

The 80/20 rule can give you a good plan for how to reach your sales and marketing goals. Whether it’s about customers, salespeople, or company resources, it might help your business to use the Pareto Principle. It’s a sales and marketing method that doesn’t get enough attention, but it could help your business move forward.

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