Your business can profit from the 80/20 rule in 12 ways.
Daytona Beach, FL (PRWEB) December 09, 2014
Many small business owners and managers suffered from declining profits in 2014 and seek more profits in 2015. One way to increase their profits is to use the 80/20 rule to predict and control results, as recommended by her new bestseller, "Aesop's Keys to Profitable Marketing."
For over a century scientists have confirmed that the 80/20 rule is a universal law of results. Many business owners and managers realize the top 20% of their customers produced 80% of their profits. But few realize that the top 1% will produce over half of their profits.
This means that successful businesses target their most profitable customers and prospects just like them. Successful businesses reward top customers, rather than complainers, and delegate less profitable customers to competitors that can better satisfy them.
Business leaders are eager to learn other ways to profit from the 80/20 rule. Generally speaking, the trick is to allocate resources to the most productive inputs and to remove resources from less productive inputs. The inputs can be anything, for example, customers, products, suppliers, or employees.
A smart business leader uses the 80/20 rule to decide about all 12 components of the marketing plan of the business. This includes its mission, specialty, suppliers, target market, products and services, pricing, distribution, promotion, prospecting, service policy, budgeting, and implementation.
The chapters of "Aesop's Keys to profitable Marketing," present 12 ways to spark profits with the 80/20 rule. Each chapter updates a tale by Aesop, relates his wisdom to marketing, and shows a new ways to use the 80/20 rule for marketing.
Key #1: Focus on quality. Comparing a vixen's litter to the regal only child of a lioness, Aesop says, “Quality not quantity counts.” For example, if the mission of a business is to offer high quality products and services, it will rule its marketplace like a lioness.
Key #2: Compete on strength. Commenting on a peacock's jealousy, Aesop advises, “You go further by using your own gift.” Thus, a business that specializes in its strength will magnify its profits.
Key #3: Delegate weaknesses. Another fable by Aesop describes how a mouse saved a regal lion. This implies that delegating weaknesses to suppliers allows a business to specialize in its strengths.
Key #4: Describe key customers. Aesop warns us against killing the goose that lays golden eggs. Likewise, neglecting top customers will encourage them to switch to a competitor.
Key #5: Offer treasures. Comparing a fox to a stork, Aesop recommends different strokes for different folks. Similarly, if top customers treasure certain products and services, the business can save money by discontinuing items they do not treasure.
Key #6: Price as valued. In another tale by Aesop, a peasant values a barren apple tree for hosting a beehive full of delicious honey. This story implies that a business should price items by their value to its top customers, rather than to its other customers.
Key #7: Deliver delight. Aesop observes that the hare lost a race because the tortoise was consistent. Thus, a business that consistently delights its top customers will retain their loyalty
Key #8: Trumpet empathy. Aesop says an egotistical businessman is “his own trumpeter.” In contrast, a businessman that promotes his empathy for top customers will produce high profits.
Key #9: Target key prospects. In another fable by Aesop, a crab asks his mother to show him how walk straight. Aesop concludes, “Example is better than precept.” Correspondingly, a business should target prospects that are similar to its top customers because they will also become highly profitable.
Key #10: Reward the best. Aesop reminds that the best will “save us in a time of trouble.” Likewise, if a business rewards its top customers, they will remain loyalty in troubled times.
Key #11: Concentrate resources. Observing that a miser lost his gold, Aesop advises, “Unused possessions create no good.” Thus a business should allocate resources where they produce the best results.
Key #12: Jump into action. Referring to a braggart, Aesop recommends “deeds, not words.” In other words, a business that implements these marketing decisions will spark its profits.
In summary, each tip is a new way to profit from the 80/20 rule. These 12 tips guide the fundamental decisions in a marketing plan. When you implement these decisions, your business will spark its profits.
Dr. Betsy Kruger writes articles, speaks to groups, and coaches businesses to profit from the 80/20 rule with 12 marketing strategies. For example she will conduct "Spark Your Profit" workshops on 3/20/15 in Orlando; FL, at the National Entrepreneur Center. On a regular basis, "Enterprising Women" publishes her articles and posts. Most of its readers generate at least a million dollars in annual sales.
For over 25 years, she conducted marketing research, commercialized her software, and taught business courses. Her academic book, "Top Market Strategy: Applying the 80/20 Rule," enriches graduate marketing courses and attracted interviews with 17 syndicated radio shows. Betsy’s bestselling book, “Aesop’s Keys to Profitable Marketing,” enriches businesses and has been widely available since its release on October 25, 2014.