Not all customers are created equal. What’s your Pareto Buyer Ratio™ (PBR™)?
Imagine only 20% of your customers bring in 80% of your sales (or pretty close) – more importantly, profits. It’s like flipping a coin, but one side lands 80% of the time! The rule helps prioritize resources and budget, focusing on the few key customers (the 20%) most likely to give you the best results (80% of sales). Your PBR™ may vary, but the idea is if you don’t know who your 20% are, it’s going to be extremely difficult and expensive to drive growth.
Who are those 20% ideal customers?
And imagine if you could find more of them. At scale. Imagine if 100% not just 20% of your customers were your best customers. That could more than 4x your growth and profitability if you optimize marketing activities. That’s where Segment Ninja shines.
Zero increase in marketing expense and save up to 80% in ad waste.
The Pareto Principle also applies to your marketing expenses and ROI. It suggests that only 20% of your spend drives 80% of conversions. So when you know who your ideal customers are (the 20%), you can spend less to get better results because of optimized targeting and messaging. Or, spend the same and target 100% of your ideal customers for faster and exponential growth.
Your 20% are worth 16x more.
The Pareto math imputes that your best (most profitable) customers are worth 16x more than the rest. But, don’t completely ignore the 80% because they are an opportunity get them to behave like your 20% ideal customers at zero acquisition cost. These are your next-best customers. Imagine the impact.
What’s your PBR™ (Pareto Buyer Ratio)?
More about the Pareto Principle here.
