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Recently, I found myself in a bit of a pickle. With some massive client projects landing on my plate, I had to delegate almost 80% of my tasks for the school.
As a type A, organisation-driven human this was not an easy ride.
That much I can tell you, even with a wonderful team there to help me. Still, I turned to the trusty Pareto Principle to make it happen!
The 80/20 principle is everywhere, and it's not just some fancy theory. Also known as the Pareto principle, it was first described by Vilfredo Pareto.
Pareto was an economist who studied how resources were spread among people.
He noticed a pattern: a small number of people held most of the wealth. This discovery led him to dig deeper, and he found that this pattern showed up in all kinds of situations.
How can you use this for your own work? You’re about to find out.
👩🏫 Lesson of the Week
Did you know? Vilfredo Pareto first introduced the Pareto principle in 1906.
Pareto did his best, but he didn’t fully understand the principle himself. Later, other economists and researchers came across the same pattern, often without even knowing about Pareto’s work. They helped develop the principle into what we know today.
So, what does the 80/20 principle mean?
It’s simple: a small amount of effort leads to most of the results. Just like a few people hold most of the wealth, a few students get the top grades. Look around, and you’ll see the 80/20 principle in action.
The percentages aren’t always exactly 80/20, but the idea is the same: a few things are crucial. Understanding this helps you focus on what really matters.
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Applying the 80/20 Principle in Business
Take a company where 20% of customers make 80% of the purchases. What should they do? Focus on making those key customers happy. They could also find ways to get more of the other 80% to become top customers. Recognising the 80/20 principle in your business can guide your strategy.
Your customers aren’t picking you by chance. There’s a reason they choose you over others. Find out why and make sure you keep them happy, and your business will keep growing.
Once you know who your top 20% of customers are, focus on keeping them around. Expanding your market is great, but never forget about your best customers.
Identify the top 20% of your customers who contribute to 80% of your revenue. Tailor your marketing campaigns specifically to their needs and preferences to increase loyalty and repeat business.
A few things you can do to make the most of this 20% includes:
Run 1:1 interviews with those customers in exchange for rewards
Encourage UGC or ask for a testimonial
Test ideas and strategies with these customers first
Analyse their behaviours or patterns (what do they buy, or engage with?)
Dive Deep into Marketing
This principle at its core helps you making better choices.
For example, when it comes to content, you can analyse which 20% of your content generates 80% of the engagement. Focus on creating more of that type of content to drive higher interaction and engagement rates.
Other areas could be…
Ad Spend Allocation: Review your marketing channels and allocate 80% of your budget to the top 20% of channels that deliver the best ROI. This ensures you’re investing in the most effective platforms.
Email Marketing: Identify the 20% of your email list that opens and engages with your emails most frequently. Send them exclusive offers and personalised content to boost conversions and maintain engagement.
Product Promotion: Determine which 20% of your products are responsible for 80% of your sales. Highlight these products in your promotions, feature them on your website’s homepage, and create special offers to maximise their performance.
🏫 Class in session
Talking about making better choices, I would be remiss not to share with you the amazing replay of Emma’s workshop from Summer School all about making good enough choices. I may be biased, but it’s a good one!
Resource from the workshop: click here
Take the quiz: click here
So, there you have it – the magic of the 80/20 principle.
Whether you’re juggling massive client projects or fine-tuning your marketing strategy, this principle helps you zero in on what truly matters. It’s about working smarter, not harder.
Start identifying your top 20% today – be it customers, content, or even tasks. You’ll be amazed at how focusing on that small percentage can lead to big results.
Let's make those 20% count. Keep it focused, keep it impactful, and always keep it fun.
Always cheering you on,
Fab ✌️