I’m sure you’re familiar with The Pareto Principle or 80/20 rule. Where for many events, roughly 80% of the effects come from 20% of the causes.

In marketing it’s often applied to identify the small percentage of customers that deliver the majority of sales revenue or profit.

I’ve always loved the rule, and regularly apply it to uncover top-level data insights as to the profile and value of a client’s database.

Results will vary – the approach is the same

On a recent project for a business in Japan, I worked with a data analyst to perform such customer value analysis.

Their customer base turned out to be 70/20.

With 70% of the value coming from the top 20% of their customer base.

This number challenged their current marketing thinking, sales approach and channel activity thinking. It highlighted the need to think differently about their VIP customers and to learn from regional variances.

And in a project with an Australian client, we identified that 60% of value came from the top 15% of customers. Of which 20% of the value came from their top 1.3% of customers!

There was a huge opportunity to take a new approach to marketing.

Whilst the numbers always vary, the approach is the same:
• Get back to analysing where value is coming from
• Identify what is driving the trend
• Take action in recognizing the VIP customers
• Harness this VIP segment for advocacy

So, whether you are in the middle of a Digital &/or Tech Transformation, working on a single customer view project, or simply working with disparate databases and systems, there are solutions for pulling data together and mining for insights within weeks, not months.

Don’t let technology vendors fool you, that it will be hundreds of thousands of dollars and months to perform such analysis.

We can do it for $10,000 – $25,000 within a few weeks. Giving you actionable insights and a new framework for marketing planning.


If you’re interested to find out more, then let’s grab a coffee. Contact us here now