Identifying Your Top Products Using the 80/20 Rule
Do you realize that the top 1% of your products on Zazzle probably provide you with 50% of your revenue?
80/20 Rule – Unlocking The Key to Success
In 1906, the Italian economist, Vilfredo Pareto, conducted a study on land ownership in Italy. His findings showed that 80% of the land in Italy was owned by 20% of the population.
This principle has become widely known as the “80/20 rule”. As examples:
- 80% of revenue come from 20% of customers
- 80% of sales come from 20% of sales reps
- 80% of revenue comes from 20% of products.
We are all familiar with this concept, but how far can we drill down on it?
- If 80% of revenue comes from 20% of products, then 64% of revenue comes from 4% of products.
- If 64% of revenue comes from 4% of products, then 51% of revenue comes from 1% of customers.
1% of Your Products Provide You With Half of Your Revenue.
Imagine that – your top 1% of products provide you with half of your Zazzle revenue.
What are you doing to develop new products, and move them into the top 1%?