What is the 80/20 rule in marketing?

The 80/20 rule in marketing, or Pareto Principle, states that 80% of results (revenue, leads, sales) typically come from 20% of efforts or inputs. This principle encourages marketers to identify and prioritize the high-impact 20% of channels, products, or customers to maximize ROI while minimizing wasted effort.

What is the 80/20 rule in simple terms?

The 80/20 Rule, or Pareto Principle, states that roughly 80% of results come from 20% of causes, meaning a small portion of inputs drives most outcomes, making it a powerful tool for prioritizing efforts in business and life, like focusing on the 20% of customers generating 80% of revenue or the 20% of tasks yielding most of your progress. This principle encourages identifying the "vital few" activities that yield significant results, allowing you to focus your time and resources more effectively for better output. 

What is the 80 20 rule of marketing?

The best customers often bring in most of the profits, meaning 80% of sales may come from 20% of customers. Identifying the 20% of customers who purchase most of your products or services can help you develop marketing strategies to attract more like-minded customers.

What is the 3-3-3 rule in sales?

The 3-3-3 rule in sales isn't a single fixed formula but refers to several strategies, most commonly a systematic follow-up (3 calls, 3 emails, 3 social touches in 3 weeks), or focusing on content engagement (3 seconds to hook, 30 seconds to engage, 3 minutes to convert), or a prospecting approach (3 contacts at 3 levels in an account) to broaden reach and streamline communication for better results. It emphasizes being concise, relevant, and persistent, whether in content creation or communication. 

What does the 80/20 rule mean in business?

The Pareto principle states 80% of outcomes are produced by 20% of causes. The 80/20 rule helps marketers prioritize the channels that do most of the work. The 80/20 rule is the key to unlocking maximum ROI across many business disciplines.

80 20 Rule In Marketing || The Marketing Plan Formula©

What is the 40 40 20 rule in sales?

The “40/40/20” rule is a way of looking at the three core elements of direct mail marketing. It says that 40% of direct marketing success is about finding the right audience, 40% relies on the offer itself, and 20% is driven by timing, format, and overall design elements.

What is the 90 10 rule in marketing?

90-10 rule of performance marketing One of the mental models we use to manage performance spends is 90-10 (or 95-5 for large budgets) rule: manage 90% spends rigorously to focus on delivering best possible RoAS and spend 10% loosely on new experiments, new ad assets, new products focusing on input metrics trend ( ...

What is the 60 40 rule in sales?

At its core, the 60/40 rule says this: For maximum financial performance, companies should spend ~60% of their budget on brand building and ~40% on sales activation.

What is the 70/20/10 rule in marketing?

Allocate 70% of your budget here. Identify emerging opportunities: Look for channels or tactics showing early promise. Allocate 20% of your budget to test and scale these. Experiment with new ideas: Reserve 10% of your budget for completely new and untested marketing initiatives.

What is the ABC rule of sales?

While threatening and verbally abusing them, he makes a statement: That salespeople should “ABC” — Always Be Closing. Alec Baldwin's profanity-laced motivational scare tactics aside, ABC has become a widely used sales strategy in a number of sales-focused industries.

Does 80/20 really work?

Festa and his colleagues admit that it is a well-established fact that an 80/20 intensity balance provides the best possible results for athletes who train a lot, writing, “several studies have shown that it allows them to achieve greater improvements in performance,” and that “this distribution is necessary for ...

What is the 70 30 rule in marketing?

The 70/30 principle states that the salesperson should be talking for 30% of the conversation and listening for 70% of it. This 70/30 breakdown doesn't mean that you should spend 3 minutes of a 10-minute conversation giving your pitch and then listen to the prospect talk for 7 minutes.

What is the 80 20 principle of success?

The Pareto principle (also known as the 80:20 rule, the law of the vital few and the principle of factor sparsity) states that, for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few").

Why is it called 80/20?

Vilfredo Pareto

In business, the 80/20 theory is a powerful tool. This theory is called Pareto's Law after Vilfredo Pareto (1843-1923), an Italian economist and sociologist who said that 80% of your results come from 20% of your efforts.

Who started the 80/20 rule?

Introduction to Pareto's Rule

Originally identified by Italian economist Vilfredo Pareto in 1906, the principle began as a study of wealth distribution—Pareto observed that 20 percent of the population controlled 80 percent of Italy's land and income.

What is the 50/30/20 rule in marketing?

The 50-30-20 rule helps balance social media content: 50% to engage, 30% to inform, and 20% to promote. This strategy builds audience trust, boosts interaction, and enhances brand presence while avoiding content overload or aggressive sales messaging.

What is the 5 1 5 rule in marketing?

To sum up the 5 – 1 – 5 rule: Within 5 seconds, someone should be able to understand what a visualization is showing. Within 1 minute, they should be able to extract a clear, actionable insight. Within 5 minutes, they should be able to make a decision or take action from that learning.

What is the 7 times 7 rule in marketing?

The Marketing Rule of 7 is a principle suggesting a potential customer needs to see or hear a brand's message about seven times before they're ready to take action, like making a purchase, with repetition building trust and familiarity. Originating in the 1930s Hollywood movie industry, it highlights the need for consistent, multi-channel exposure (emails, ads, events, social media) to cut through noise and achieve brand recognition, though its exact number is debated and requires optimized, valuable content to avoid customer fatigue.
 

What are the 7 keys of sales?

7 Keys Every Business Must Have to Run a Successful Sales...

• The right Vision & Strategy.
• Proper Infrastructure.
• Sales Processes and Metrics.
• Proper Forecasting & CRM.
• Compensation plans that align with company goals and objectives.
• The right people, in the right seat.
• Leadership team.

What is the 7 11 4 rule of marketing?

The 7-11-4 rule in marketing, derived from Google's research, suggests a customer needs 7 hours of engagement, across 11 touchpoints, in 4 different locations/platforms, before they trust a brand enough to make a significant purchase, building credibility through consistent, multi-channel exposure. This framework highlights that trust and purchase decisions aren't instantaneous but require substantial, diverse interaction to establish reliability, making it crucial for selling high-value products or services. 

What are the 5 golden rules of advertising?

To sum-up, remember to use the right dominant color, show the right people, convey the right feeling, bring context and renew the ad regularly.

What is the 3 3 3 rule in marketing?

The 3-3-3 Rule in marketing is a framework for focus, with different interpretations, but generally means simplifying your strategy to three key messages, targeting three core audience segments, and using three main marketing channels, while also applying principles like grabbing attention in 3 seconds, engaging in 3 minutes, and following up within 3 days. It's about clarity and consistency, ensuring you don't spread resources too thin and deliver impactful, memorable campaigns by concentrating efforts on what truly matters.

What are the 5 smart goals in marketing?

You will know that SMART is used to assess the suitability of objectives set to drive different strategies or the improvement of the full range of business processes. By its simplest definition, an effective SMART marketing objective is: Specific, measurable, actionable, relevant, and time-bound.