The Pareto rule is a common rule of thumb for marketing in business. It’s based around the idea that 80 percent of a brand’s sales come from 20 percent of its customers. Now this may not be exactly specific to your company but it’s good to know that for the bulk of companies, the majority of sales come from a minority of the customers. This holds true due to heavy users and companies thinking in terms of ‘share of wallet,’ which is a percentage of a customer’s spending for a particular brand in a given product category. If a company has a better understanding of the relationships consumers have with the brands they use, they can more effectively target the brand advocates of their business and aim to increase levels of customer loyalty.

This entry was posted on Monday, March 8th, 2010 at 9:58 am and is filed under Contractor Marketing & Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.