Implement The Pareto 80/20 Rule In Your Marketing – Or You WILL Fail!
Have you ever heard of an Italian Economist called Vilfredo Pareto?
After conducting a thorough study on the world’s wealth Vilfredo Pareto concluded that roughly 80% of the world’s wealth was confined to 20% of the population. However, he found that this wasn’t just confined to wealth. For many events, roughly 80% of the effects come from 20% of the causes. Thus the Pareto Principle was born.
The Pareto Principle is also common in Marketing and business in general. How?
I am an Online Marketing Coach and I speak about this subject which is very close to my heart. I test and I test consistently. Throughout all of my tests I find that 80% of my success does indeed come from 20% of my campaigns.
The 80/20 Principle Is Fractal
If you were to delve deeper into your marketing campaigns you will probably notice that within each successful campaign (1 in 5 or 20%) another 80/20 principle exists, the results are Fractal or recurring.
So, what we need to do with our Online Marketing is BE PREPARED TO FLUSH 80% OF YOUR MARKETING COSTS DOWN THE TOILET!
It should NEVER be classed as a WASTE, never! The 80% is DATA GATHERING! You need to spend this to find out what’s working or not as the case may be!
Once you find the 20% that is successful, try to delve further into that. Does another 80/20 rule exist within your successful campaign? If it does, see what you can scale up.
Once you find this, then you’ve found UTOPIA! Don’t rest on your laurels though, you need to have several different campaigns…but why?
Say for example you are having success with Google Adwords, congratulations but BEWARE of sofware updates that could potentially kiss goodbye to your traffic! The same is said for Search Engine Optimization (or SEO). You’ve made it on the coveted 1st Page Of Google, and you’re seeing a ton of organic (Free) traffic as a result of the Search Engine Results. Again, all it takes is ONE Software update (Google are notorious for this without warning!) and your business is F*****!
So, don’t stick all your Marketing eggs in one basket – don’t go mad but have a few campaigns that you know are bringing you traffic/prospects.
80/20 In Business
Take a retail shop, you will find that 80% of the ‘footfall’ is confined to 20% of the shop. Does a further 80/20 exist within this 20%…probably! The shop owner will probably find that within that 20% of the shop 80% of customers go to a certain rail/brand etc…..the Pareto Principle is EVERYWHERE.
So, the next time you decide that you want to pay for online traffic (and everyone should be doing this to grow quickly!), decide upon a Marketing budget and be willing to lose 80% of that straight away. When you find that 20% Holy Grail then it’s time to have some serious fun.
Don’t Forget – As with any Marketing campaign, TEST SMALL THEN SCALE UP ON YOUR SUCCESSES.
That’s it for today. I hope you’ve found this useful.