1. 80% of your profits come from 20% of your customers.
This is the most common observation of the Pareto Principle. Thankfully, it’s pretty easy to find out whether it holds true for your business. If you find that the bulk of your profits comes from around 20% of your buyers, then make sure you’re working hard to retain those customers and treating them well.
Identify customers who have bought recently, often and spent the most.
Find out where those 20% come from — the traffic channels that they discovered, the ads on which they converted and the content with which they engaged. Optimize, enhance and promote that content.
2. 80% of your online product sales come from 20% of your products.
What products do you sell? If the Pareto Principle holds true for your business, then you’ve got some hot sellers, responsible for around 80% of your sales. These are the products that you should work to enhance, promote, advertise and push. They’re hot sellers for a reason, so make the most of them.
3. 80% of your visitors come from 20% of your keywords.
You should spend a lot of time developing keywords, forming a keyword strategy and applying those keywords across your website. But here’s the surprising thing about keywords: In most cases, 80% of your traffic and visitors come from a mere 20% of your keywords. I’ve found that the ratio is usually even more weighted than that. Serve the users who want online marketing information.
Provide even more detailed and helpful information on online marketing.
4. 80% of your content marketing leads comes from 20% of your content.
You already know that content marketing is powerful. But do you know where your content marketing leads are coming from? If your experience is like mine, you’ll find that most of your leads and traffic come from just 20% of your content assets. Identified top-performing content assets and milked them for all they were worth by turning them into long-form guides.
5. 80% of your social sharing comes from 20% of your social updates.
Take your social sharing into consideration. Where are all those likes, plusses and retweets coming from? They’re probably coming from just 20% of your updates. Using a social analytics tracker, find out the features that your high-performing social updates have in common and apply them to your other updates.
6. 80% of your traffic comes from 20% of your traffic channels.
Every website receives traffic from a variety of sources. I keep a close eye on my traffic channels to see where I’m gaining most of my referrals. A quick glance at Google reveals the top referral sites. According to Pareto, you’ll gain most of your referral traffic from just a few of these sites.
7. 80% of conversions will be generated from 20% of your pages.
In conversion optimization, you need to focus on the 20% best converting pages. The better you optimize these pages, the more conversions you’ll be able to gain.
8. 80% of sales come from 20% of advertising channels.
When you take into consideration your advertising channels, you probably use AdWords, retargeting and perhaps some site-specific banners, or other outlets. Where are most of your sales and leads coming from? Focus on the channels that produce the most.
9. 80% of customer complaints come from 20% of customers.
Just as the most sales come from 20% of your customers, the most intense pain comes from 20% of your customers. These are the customers who have your help desk on speed dial, are people you know by name and are also people you sometimes wish you didn’t even have as customers.
These few customers are responsible for 80% of the time and attention of your customer service personnel. Keep this in mind when you’re developing strategies for assisting your help desk personnel.
In closing, here are two points:
The Pareto Principle is not a law. It can be applied sometimes in some circumstances, but not all the time.
The Pareto principle can be extremely powerful. And that means the same kind of power that comes from finally realizing that your data is telling you a story and that it is actionable.