The 80/20 rule summarizes a universal law that predicts the relationship of inputs to outputs—and even governs the impact of customers on your business profit. According to this law, you can expect that the top 20% of your customers will generate 80% of your profit from customers and be 16 times more profitable than your other customers. Top Market Strategy: Applying the 80/20 Rule demonstrates the three steps to apply this universal law in your business:
- Segment your customers by their profitability and distinguish the most profitable 20% of your customers.
- Select this market segment as your target market.
- Focus your strategic marketing plan on serving this target market.
This book reveals insider secrets for your business success, explains that a top market strategy can dramatically multiply your profit from customers, and demonstrates with a practical example how to implement this process in any business—even yours. You will learn to do the following:
- Probe for insights, create a survey, sample your customers, and obtain valid responses.
- Use statistics in Microsoft Excel to distinguish customers in your top market segment from other customers.
- Create effective marketing strategies for attracting highly profitable new customers to your business.
This universal law predicts that your profit from customers will quadruple when your marketing strategies serve your most profitable customers.