Whilst many business owners might have heard of the pareto principle not many apply it their business. According to the 80/20 Pareto Principle, roughly 80% of results come from 20% of efforts or causes. What does this mean? It's more productive and effective to focus your efforts on the 20% that can bring the most results for your business.
Here’s 7 ways you can identify where to focus your time, resources, and efforts in your marketing to maximise results in your business:
1. Identify Your Key Customers:
Recognise that a significant portion of your revenue likely comes from a relatively small group of customers. Focus your marketing and customer service efforts on retaining and satisfying these key customers to ensure long-term success. Explore loyalty and referral based marketing options that might be suitable for your business.
2. Product or Service Analysis:
Take a look at your current data and determine which products or services generate the most revenue and profit. Concentrate your resources on these high-performing offerings and consider optimising or even discontinuing those that don't contribute significantly to your bottom line.
3. Time Management:
Analyse how you spend your time as a business owner. Identify tasks and activities that have the most significant impact on your business's success, and prioritize them. Delegate or outsource less important tasks when possible. This can be done in a number of ways to suit any budget from getting an intern to hiring a remote freelancer or a local contractor.
4. Marketing and Advertising:
Review your marketing efforts to determine which channels and strategies are most effective in reaching and converting customers. Allocate more resources to these top-performing marketing channels and optimise your campaigns accordingly. Consider getting an external pespective on this, it can be a great investment in understanding where your gaps and opportunities are today.
5. Sales and Lead Generation:
Assess your sales and lead generation efforts to determine which customers or channels generate the most revenue. Concentrate your sales and marketing activities on these high-value segments or sources.
6. Customer Complaints and Feedback:
Analyse customer feedback and complaints to identify recurring issues or areas that need improvement. By addressing the 20% of issues causing 80% of customer dissatisfaction, you can enhance overall customer satisfaction. Regularly review your ratings on google, social media, third party review sites to ensure you can tackle any negative feedback quickly and proactively work on improving specific area of the business if required.
7. Vendor and Supplier Relationships:
Evaluate your vendors and suppliers to identify the ones that consistently provide the best quality, pricing, and service. Concentrate your purchasing and partnership efforts on these top suppliers. Consider collaboration and cross promotion opportunities with your vendors and suppliers.
By applying the 80/20 principle, you can prioritize the most impactful aspects of your business.
We often hear from clients that they feel overwhelmed with marketing and social media management for their business and most say they wish they outsourced it earlier so they could focus more on business growths. If this resonates, perhaps its time to delegate! Talk to us, we might be able to help.