We do do not lead directly to the goal, but are still necessary to be able to achieve it. I’ll give you a very practical example: writing and replying to e-mails or messages is certainly one of those actions that falls within 80% of operational tasks that bring only 20% of the results, but what if we stopped doing it?
From this point of view, the Pareto Principle comes in handy when we realize that we are not particularly efficient and we feel that we could do more or do better by obtaining more results.
Another mistake concerns the application of the Principle
to products or services (20% of products services generate 80% of turnover). I’ll give you another example. Let’s take Apple: 20% of high-end products obviously generate 80% of the company’s turnover.
But what if Apple decides Burundi Email List to cut the remaining 80% of products? Spoiler alert: no, it would not increase turnover, on the contrary! Many products that fall into the 80%, such as the emails in the previous example, are needed because they are related to high-end products such as power cords, software, etc.
Ditto when we talk about customers . Eliminating 80% of the least profitable customers does not mean positioning yourself on a customer base where 100% of people buy your high-end products or services.
You will soon realize that the same situation will recur
Only with a slightly different target audience, “moved” to a slightly higher price range than the previous one. I remind you: even by dividing customers into smaller segments, you will find the 80/20 law applied.
The same also applies to luxury brands: although they may clearly aim to mainly serve the most high-spending customers, there will always be many other customers (80%) who will purchase a Premium Price productonly in certain contexts:
A Gift, a Promotion. An Important Event, a Sudden and Momentary Greater Economic. Availability COB Directory Conclusions as I Have Already Said. The Principle is Recurrent and is to Be Understood as a Point of View. Not as a Mathematical Law.
It is what allows you to have a general picture of your business , in order to be able to make strategic decisions in line with the company objectives, vision, values and positioning of your Brand.