The 80/20 Rule: A Key Marketing Strategy to Grow Your Audience
Building out your audience is essential for small businesses to succeed. But how? One useful method is applying the 80/20 rule to your marketing efforts.
What IS the 80/20 Rule?
The 80/20 rule (also known as the Pareto Principle) is all about identifying your best business assets and practices and using them effectively to maximize value. It suggests that 80% of your company’s revenue comes from 20% of your selling efforts. Alternatively, you could say that 80% of your sales come from 20% of your customers.
The 80/20 rule can be an incredibly helpful guide for creating a successful marketing framework that converts to both increased sales and customer engagement. So how do you leverage it to build a larger audience of customers? Here are some useful marketing tips and strategies for making the 80/20 rule work for you.
Applying the 80/20 Rule in Marketing
Marketing strategies for growing your audience depend on several factors:
- Identifying your most loyal customers
- Identifying which marketing channels bring the highest conversions and sales
- Leveraging social media channels effectively
- Improving traffic to your landing page
- Use omnichannel marketing
To identify the 80/20 split in these areas, ask these types of question:
- Who are the top 20% of our audience and what are their characteristics?
- Which media sources/platforms comprise the top 20% of traffic to your media channels?
- Which type of content has the top 20% of engagement?
- What are your top 20% content topics?
- What are your best performing products/services?
Know Your Target Audience
To increase your total sales, it is crucial to identify the top 20% of your customers who generate 80% of your sales. By understanding the unique characteristics of these customers, you can continue to target them while also targeting similar customers and growing your business. Use the RFM (recency, frequency, and monetary value) rule to identify this group and analyze your sales log to find out who bought from most recently, who bought most frequently, and who spent the most money. By focusing your marketing efforts on this valuable segment of your customer base, you can retain them while also attracting new customers with similar spending patterns and preferences.
Use Content Marketing to Build Brand Awareness
These days, incorporating content marketing into your business strategy is a crucial step. One way to maximize its potential is by utilizing omnichannel marketing, where multiple channels are employed to work together seamlessly. Facebook, Twitter, and Instagram are ideal platforms for this type of marketing and can widen your reach considerably. Targeted email marketing and blogs can also significantly contribute to establishing and growing your brand’s identity.
However, don’t forget to give equal importance to your website’s look, content and integration. Logicblock’s 7cart services ensure your site is optimized for SEO to create maximum visibility. Every product in your store gets a personalized page, equipped with meta-tags to optimize its appearance on search engines such as Google, ultimately raising awareness and interest in your products. In addition, Logicblock provides full social media integration within your site, thereby allowing customers to easily share your products with friends and family via social channels and expanding your reach even more.
Your Metrics Are a Goldmine
Yes, metrics may seem overwhelming, but once you know how to understand and harness them, they can become your marketing strategy’s best friend. Use them to check factors like engagement, amplification, conversion, and audience growth rates of your social media channels, blogs, website, email marketing, and whatever other platforms you use to reach your customers. Which content had the most engagement and reach? Which content led to the highest click-through rate. Incorporate what you learn from those metrics into creating future content that connects. By putting out content that engages and helps audiences, you begin to build a name as a brand you can trust. That leads to more customers, which leads to more sales.
Keep in mind, merely creating content is insufficient; to grow your audience, you need to craft content that resonates with them. This entails taking a customer-centric approach by identifying your target customer’s pain points and providing solutions that address and even surpass their expectations.
Need help? Logicblock’s 7cart services can help you create an online store that makes the most of your marketing and promotions and SEO.
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