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