Pareto Principle in Marketing

The Pareto Principle in marketing suggests that roughly 80% of a company's sales come from just 20% of its customers or products. This means a small group often generates the majority of results. Understanding this helps businesses focus their efforts on their most valuable customers, products, or marketing channels to maximize effectiveness. For example, identifying key customers allows targeted marketing, improving retention and sales efficiency. It emphasizes prioritizing resources on the areas with the greatest impact rather than spreading efforts evenly, ultimately helping businesses grow smarter and more profitably.