Use the 80/20 Rule to Increase Your Profitability

Are you familiar with the 80/20 rule, also known as the Pareto Principle? As it relates to business, the rule asserts that the majority of your sales will come from a small portion of your customer base. Specifically: 80% of your revenue comes from 20% of your customers.

By understanding and leveraging the 80/20 rule, you can potentially increase your business effectiveness and profitability.

All Customers Aren’t Created Equal

From a sales and marketing perspective, it makes sense to invest time and effort in strengthening and maximizing your relationships with the vital 20% of your customers. This segment has the greatest potential for spending more money on your products or services. They’re also more likely to refer business to you.    

Spend more time cultivating this core base of customers that generates the most business and profits. Create a strategy for up-selling or cross-selling to this group as you’re likely to reap the most results.

Provide these lucrative customers with preferred services such as 24/7 support, loyalty rewards, email them discount coupons, send special holiday gifts or personalized notes of appreciation, and other ways to thank your best customers for doing business with you.

Customer Profiles

Take time to analyze the characteristics and demographics of the top 20% of your customers. Understand why they buy and what drives them. Focus your marketing efforts on finding new clients who are similar in an attempt to replicate your successes.

While all business is important, pinpoint your highest-return customers and devote more time to them and avoid letting unprofitable customers drain your resources. To maximize your profits, employ marketing strategies that attract more of your ideal type of customer.

Contact Marketing & Event Resources for assistance with your targeted marketing campaigns to attract the right clients!

Highlights of Marketing Trends for 2022 (from HubSpot)

HubSpot does an annual survey of 1000 marketing professionals around the world (both B2B and B2C) and from that data they create an overview of trends to look for in the coming year.

Here are some of the 2022 trends and information about what they are and why marketing professionals are embracing them:

• Influencer marketing will evolve from a trend to a common marketing tactic.

When marketers collaborate with influencers and industry thought leaders in their industry, they can expand brand awareness and gain fans from the influencer's own audience. 

• Video marketers will keep content short.                                                       
  

Short-form content is the second most effective trend marketers are currently leveraging. 

• Mobile optimization will be even more important. 

More than half of annual online website traffic comes from mobile devices, including tablets.  

• Permanent social media posts could overtake ephemeral content.

While ephemeral content -- which often stays published for 24-hours before disappearing (unless it's saved or archived) -- isn't going away any time soon, brands have seen that permanent social media content -- such as standard posts, videos, and live events that show up on a platform's feed and can be viewed again days later -- might be more effective within their marketing campaigns.

• Companies will prioritize social responsibility.

• Experiential marketing could make a comeback.

• More businesses will use SEO to concur search traffic.

While SEO is not new, its strategies are becoming even more ingrained within modern-day marketing strategies. 

• Virtual events will continue, but some brands will invest less.

Despite losing some shrinking virtual event budgets, marketers won't be leaving the virtual event space any time soon. In fact, a whopping 80% of marketers plan to invest the same budget or more into virtual events in 2022.

• More consumers will hear branded audio content.

53% of professionals whose companies leverage content marketing find "podcasts or other types of audio content" effective when it comes to engagement and brand awareness. 

• Inbound marketing will remain a best practice for growing brands.

• Consumers will step into virtual reality (VR) and augmented reality (AR) experiences.

Ever watched a 360° video on Facebook? That’s VR. What about IKEA’s IKEA PLACE app which helps you visualize virtual furniture in your very real room? That’s AR.

Source: HubSpot https://blog.hubspot.com/marketing/marketing-trends

Bring Your LinkedIn Profile to Life

LinkedIn users: Did you know you can add a 30-second intro video to your LinkedIn profile? 

It’s called the Cover Story feature and the functionality is available via the LinkedIn app only. It’s a great way to introduce yourself, add some personality to your profile, or set yourself apart from the competition.

Simply go to your LinkedIn profile page (via the app), click on your profile picture and it will give you the option to add a video.

Film it directly in the app or upload a pre-recorded video from your phone.

It’s only 30 seconds long so you want to plan what you’ll say to have the most impact in this short snippet! What do you want your LinkedIn visitors to know about you or how you can help them?

Once you add your Cover Story video, it will replace your profile picture and it will be outlined by an orange circle (see photo).  Check out my LinkedIn Cover Story!