80/20 Principle In Marketing

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80/20 Principle In Marketing

This underrated technique has great potential and can be beneficial for marketing. 80/20 principle, also known as the “ Pareto Principle” is one of the most important and effective elements of any marketing campaign. Not a hard and fast rule but applicable in almost every field. But what exactly is the Pareto Principle? This most important concept of life states that 20 % of your daily activities will bring 80% of the results you get at the end of the day. 20% of your most productive tasks of the day will lead to 80% of the accomplishment at the end. This concept can be applied to both personal and professional life. 80/20 rule is sometimes also known as:

  • Law of vital few 
  • Principle of factor sparsity 

80/20 principle in digital marketing:

An effective golden rule for digital marketing, the 80/20 principle, can boost your marketing campaign to take it to the height of success. Unlike a crystal ball, it can’t help see your future clearly but still can be helpful in understanding your business and your clients. 

In social media marketing use 20% of posts for your business promotion that will greatly impact your customers while the rest of 80% of posts can be used to entertain the audience, inform or educate them and engage them this way. Though with the advancement of strategies of varying kinds, it is generally believed that the 80/20 principle in marketing or as we say in digital marketing might not be as effective as it once was. There is not any fixed ratio for digital marketing that might boost your social media presence overnight.

Some examples:

  • 20% of your products bring you 80% of your total revenue. 
  • Only 20% of your products have caused 80% of the quality control issues 
  • 20% of the customers might have caused 80% of the complaints
  • 20% of your buyers generate 80% of your sales 

Every business is originally based on unique motives, goals, connotations, and voice and involves a different technique of the marketing strategy. The best way to find the perfect ratio for successful marketing is to find an original voice for your business first and then test the different ratios to see what suits the best for your field. For example: once you find out the 20% of the best products which are responsible for the 80% (most of) the product sales, you can use this knowledge for your benefit. Keep their supply steady and build a marketing plan around these products. Present these products on your online social media posts, websites, or ads. Know your customers and understand their needs. By doing this you are laying a solid foundation for serving the community and your potential customers. Another thing this rule states is that 80% of the post sharing on social marketing platforms is from 20% of the social updates that you are making. What makes these updates so popular? Maybe your products are the reason for this. Or are you posting at the time which is suitable in terms of the right audience. Using the right hashtags can also be a reason for this. Knowing what exactly brings you customers’ responses and making them share your ads or posts can mean a lot.

Advantages of using the 80/20 principle:

It is an amazing way of managing your marketing strategy to understand how the 80/20 rule works. Apply the 80/20 principle in Marketing 4P. But what are the 4Ps of marketing? These represent the price, product, promotion and place. 

The best 20% of 4Ps of marketing will bring the 80% of the results or success in any particular activity. Start with focusing on 20% of most successful marketing messages (which understand the needs of your top 20% customers) and reward your best customers with something that will keep them interested and make them a means to spread (promote) your business. This will make you faster and better, and will bring more profit to your business. 

The 80/20 principle suggests that 20% of what you do signifies the 80% of its outcome. It can also be said as “ 20% of your customers are responsible for 80% of the Profit in your business”.  

  • Manage your operational cost 
  • Find the best customers
  • Deal with difficult customers ( 80% for your complaints are from 20% of your customers) 
  • Reward the best customers
  • Know their interests
  • Wise investment of time (Focus on top 20% most important tasks first and then give the rest of your time to other tasks)
  • Cost management (manage your expenses) 
  • Website traffic (run a complete SEO analysis and focus on top 20% keywords) 
  • Social media marketing

Disadvantages of using the 80/20 rule

One of the biggest disadvantages of the 80/20 principle can be that this rule does NOT always hold. Sometimes you might need some extra effort (30%) for 80% results. In addition, to find the 20% of input (which leads to the 80% of output) this rule does not give a way of finding the root cause of problems.


What is the 80/20 rule in digital marketing?

What is the 80/20 rule in digital marketing?

80/20 rule means that 20% of the most important tasks done by you will determine the 80% of the output of that particular activity. For example 80% of the total sales come from the 20% of the products. While the rest of 80% products generate only 20% sales. So focusing on those top 20% products will help grow your business.

What is the 80/20 principle and why is it important?

80/20 principle and why is it important?

It states that 80% of your outcomes are the result of the 20% of your input. Knowing this rule can be helpful because once you know the “cause” of the 80% of your total progress or outcome then you can manage your activities accordingly to be better and faster. Focus on the most effective tasks (20% of input) to generate maximum (80% of the) outcome. Then give your remaining resources on the rest of 80% things. This will keep you one step ahead of the competition.

To sum up:

Smart work is always better than handwork. Apply the 80/20 rule in  Marketing 4P. Reading the whole article you must be convinced that the 80/20 principle can provide you with a guideline and a framework according to which you can easily base a more successful marketing campaign and stay ahead of competition.  Still want to read more about the 80/20 rule; the secret of highly effective businesses and individuals? Download 80 20 principle book pdf which is available online. Moreover, valuable eBook can be purchased from amazon.

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