BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Eighty percent of sales will come from 20% of customers.
|
|
|
For every 80 people who look at a product, 20 will buy it.
|
|
|
For every 80 customers, 20 will be repeat customers.
|
|
|
Eight percent of customers are only interested in 20% of available merchandise.
|
Detailed explanation-1: -The rule is often used to point out that 80% of a company’s revenue is generated by 20% of its customers. Viewed in this way, it might be advantageous for a company to focus on the 20% of clients that are responsible for 80% of revenues and market specifically to them.
Detailed explanation-2: -The Pareto Principle in business refers to the way 80 percent of a given business’s profit typically comes from a mere 20 percent of its clientele. Business owners who subscribe to the 80/20 rule know the best way to maximize results is to focus the most marketing effort on that top 20 percent.
Detailed explanation-3: -The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes. In other words, a small percentage of causes have an outsized effect. This concept is important to understand because it can help you identify which initiatives to prioritize so you can make the most impact.
Detailed explanation-4: -Prospecting. 20 percent of your prospects make up 80percent of your sales conversion. Customers. 20 percent of your clients are those who will spend 4x more on your products.