Marketing Lagniappe - "Pareto's Principle - Flipping Traditional Marketing on its Head"

MARKETING LAGNIAPPE PARETO’S 80/20 PRINCIPLE Flipping Traditional Marketing on its Head CUSTOMER BASE

WHAT IS PARETO’S PRINCIPLE? 20% Effort 80% Results “80% of the effects come from 20% of the causes” - Wilfredo Pareto, 1906

THE PHELPS 80/20 COROLLARY “80% of your traditional marketing will net 20% of your results”

"Half the money I spend on advertising is wasted; the trouble is I don't know which half." - John Wanamaker

Traditional push marketing is largely ineffective . . . Consumers are bombarded with 3,000 + messages per day Photo Credit: Gary Larson

Awareness Interest 80% of a traditional Desire marketing budget focuses on prospective customers and Action returns pennies on the dollar

Because 80% of your marketing is inefficient, you may only be increasing your customer base by roughly 10 to 20% per year

But you may lose 10 -20% of your customer base each year through attrition

FACT: FACT: It costs 5 to 10 times the amount of money to acquire a new customer than it does to keep a current one

What if you put 100% of your focus and more importantly your marketing budget

on those who’ve already made it through the funnel . . .

Your Customers

You could reduce

You could reduce attrition . . .

increase o y b d a o t o t A G r a i F k e a W

increase satisfaction . . . o y b d a o t o t A G air F k e a W

. . . and promote loyalty

. . how d o you do it? Soo .

By Flipping Traditional Marketing

By Flipping Traditional Marketing on its Head

Using a concept called:

I N G T PE E P K A R I A N M G L A

Simply providing an unbelievable experience and going above and beyond for your customers

By putting your customers first

By putting your customers first marketing lagniappe can help you 4 ways

N Help you get new e customers to become w repeat customers? Repeat

N e w Help you get repeat Repeat customers to become occasional customers? Occasional

N e w Repeat Help you get Occasional occasional customers to become frequent Frequent customers?

N e w Repeat Occasional Help get your Frequent frequent customers to become evangelists? Evangelist

MARKETING LAGNIAPPE Look for the book coming in 2010 . . . More info @marketinglagniappe.com A 9 INCH MARKETING PRODUCTION THE AVERAGE DISTANCE BETWEEN THE BRAIN AND THE HEART IS 9 INCHES

Marketing Lagniappe - "Pareto's Principle - Flipping Traditional Marketing on its Head"

by Stan Phelps on Nov 10, 2009

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Marketing Lagniappe - "Pareto’s Principle - Flipping Traditional Marketing on its Head" — Presentation Transcript

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