![]() There are plenty of examples of companies forced to simplify their businesses because of supply chain issues, but it’s purely reactionary. ![]() Coca-Cola finally eliminated Tab to streamline production during Covid. When times get tough, they make hard decisions on the fly. You’re likely already doing 80/20, but under duress (and without a plan). Every management team has a sense that it can operate more efficiently, but most don’t have a set of principles to guide performance and enforce discipline. This increased revenue.Ĭompanies adopting 80/20 will overhaul their sales and compensation structures, manufacturing, distribution, billing - everything to prioritize the most valuable relationships. Our recommendation was to raise prices on those customers and reduce the margin on the best customers to retain them. Those small customers were paying less than the big ones, a fact the client didn’t realize. The entire bottom half was worth just 1% of revenue. An industrial supply firm offered more than 10,000 products to its sprawling customer base, even though the top quartile generated 95% of sales. It takes a long time for an organization, especially a sales-driven culture, to realize that not every sale is a good sale and not every dollar coming in the door has the same value. When we ask clients to look back a decade and analyze their customer base, they invariably find the majority of their best customers didn’t start at the bottom as minnows. Leaders fear this approach, because it appears short-sighted to lavish attention on big customers at the expense of cultivating the next big fish, but the reality is conversion rarely happens. You redeploy resources to focus on what matters. Yes, you’ll discard some customers and products, but you don’t necessarily reduce headcount or investment. The 80/20 philosophy is rooted in the idea of analyzing your business, identifying the best customers and prioritizing service to them so they stay with you. Just lop off the bottom performers, right? No. Maintaining and creating content has never been easier, more profitable and most of all – fun.Here are four key observations - my top 20%, you might say - on adopting the 80/20 mindset:Ĩ0/20 is not about cost-cutting, it’s about time management. With Surfer you just need to optimize, write more blog posts and publish them. You don't have to learn SEO or be a master in digital marketing. Articles ideas that search engines love make perfect addition to your content marketing strategy and increase organic traffic. Surfer helps you to build powerful and engaging content without the need for coding or special knowledge in order to create it too. Next step will be internal links analysis that will result in your content being indexed quickly and effectively. You will receive detailed reports on which keywords are the most promising opportunities. Each best blog post or landing page will be found thanks to Google Search Console integration and will be analyzed. Surfer's Grow Flow (free SEO tool) will help you build efficient SEO strategy that focus on increasing website traffic as fast as possible. Minimum would be 100 impressions in Google Search a day. So who can do that? Websites that already have dozens of blog posts that bring traffic. That effort has to be put on existing content opitmization. 80/20 means that we can drive 80% of clicks with 20% effort. New articles are great but their return is months, sometimes years. I personally think that's a huge mistake and that you should spend as much time as possible on creating great content, not on trying to get more clicks. ![]() This is an area that I hear people struggle with a great deal and there are tons of guides out there addressing it. Who can work in 80/20 rule while working on page rankings? But before we dive in, let's find out who can benefit. Here are 3 things I recommend you be doing for greater SEO. You could focus on a few aspects and make your whole marketing around those. Long audits and other forms of customer service can bring more referrals, but if you know what your doing you could do a better job at segmenting your tasks (page speed, content, keywords, backlinks). Make sure to put your efforts in places where they bring the highest ROI. ![]() If you know which customers are responsible for 80% of your sales, and you know which customers are most profitable, you can tailor your content and SEO accordingly for these customers (and cater more specifically to them!). 80/20 is an oversimplification, but a rough representation of how most of the 80% of the business is typically earned (and how many people think it's earned!). Have you heard about Pareto's Law? It states that 80% of your sales will likely come from 20% of your clientele. According to Wikipedia: The Pareto Principle is an economics principle that indicates that 80 percent of the results come from 20 percent of the causes.
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