How The 80/20 Rule Secures Brand Profit

Did you know the 80/20 Rule is everywhere in your brand? 80% of your sales come from 20% of your marketing. 80% of profits come from 20% of customers. 80% of sales come from 20% of products and 80% of search visits from 20% of keywords!!!

In today’s video and article I will specifically focus on one essential area that the 80/20 Rule absolutely matters most. This particular use of the 80/20 Rule will use your customer’s purchasing trends as a road map to ensure your brands profit.

Why The 80/20 Rule Mystifies Marketers

The 80/20 Rule has appeared everywhere in businesses and brands throughout history. So much so that it was given a name “The Pareto Principle” which states that:

For however many events, roughly 80% of the effects come from 20% of the causes.

I on the other hand am going to show you how this rule has really made an impact on Lit Up Brand and the many other businesses I have worked and partnered with over my 20+ years building brands.

So here is the sales strategy I have found most crucial to actually apply the 80 20 rule. So listen close because this is absolute gold…

80% of your product category should be built of your core products. Your products that are top sellers, time-tested and customer favorites.

So what is truly selling? What is your customer buying? Really looking at the analytics and statistics to get this information. This is where you want to be completely data-driven. Super important.

Where Creativity Lives In The 80/20 Rule

Sometimes the designer just goes off and gets creative. They experiment on new designs based on what they feel people might like and what they think might be exciting. And yes, we have to try new ideas.

But that I would put in the 20% category. If you want to test new things, try new things, try new categories or new products make sure that it does not stretch beyond 20% of your inventory.

I have seen so many businesses either not know they are breaking this rule or sometimes think they can be the one exception to the rule.

Unfortunately, I have not encountered any exceptions. I have seen some businesses who’s numbers temporarily show it’s working to break the rule, but when the annual numbers come in it is back to the 80/20 Rule.

How The 80/20 Rule Limits Distraction

As I mentioned previously and I will repeat it again because it is so important. The 80% is where you're really going to stick to your statistics, analytics and use data to keep driving your sales further.

You know what's working and you know what your customers coming to you for. Don't distract them and get in their way with new stuff all the time.

You can introduce new things, but use the 80/20 Rule ratio when introducing. Even lower than 20% if it’s really experimental and always keep that 80% at the top of the line in your sales strategy.

Cheers and enjoy sifting through litupbrand.com and my YouTube channel. I’m Lisa Elliot-Rosas and I can’t wait to hear about you’re brand.