The Pareto principle – you’ve probably heard of it. If not by name, you have certainly felt the axiom of the 80/20 rule: 80% of the results come from 20% of the effort. Vilfredo Pareto, an Italian economist from whom this principle takes its name, was the first to discover this principle. In 1906, he discovered that 80% of the wealth was controlled by 20% of the Italian population. He also realized that his principle does not apply only to wealth. It applies to many events as 80 percent of the effects come from 20 percent of the causes. This phenomenon can be applied to increase your marketing program.
The 80/20 rule is not correct. Sometimes the inequality can be 70/30 or 90/10 or even 95/5. But this principle of inequality occurs enough to be used as a valid marketing formula. For example: & bull; 80 percent of sales come from 20 percent of customers and bulls; 80 percent of earnings come from 20 percent of the products & toro; 80 percent of the problems come from 20 percent of customers 20 percent of customers have the potential to spend five times as much as they currently do. A relatively small amount of marketing efforts creates most of the production. It was discovered that: & bull; 20 percent of marketing efforts produce 80 percent of the results and bull; 20 percent of customers produce 80 percent of operating income and bull; 20 percent of the time is producing 80 percent of the results and bull; 20 percent of customers are taking 80 percent of staff and bull time; 20 percent of customers cause 80 percent of the problems.
To apply this knowledge, identify the “20 percentage factors” in your company and focus more resources on them. For example, it could take two hours and $ 250 to form an alliance with a pet store that brings you five new customers a month instead of spending two hours and $ 250 for something else that only makes one customer a month. By making your “20%” assets scalable, you can eliminate a large part of your budget and your time as you achieve more.
80/20 Marketing demographics
Use the 80/20 principle to look for inequality reports in your veterinary practice. An inverse database analysis for your customers will find the desirable features of 20 percent of your best customers. Export the client database file in a common format such as Excel. Use Google Earth or similar mapping software to map where each tenant is located. Although veterinary customers can come from all over the world, a small portion of the total customer intake produces 80 percent or more of your current customers. For example, you may find that you are attracting customers 15 miles away. But the analysis shows that 80% comes from a 5-mile radius from your clinic. Have a demographic analysis performed on your database file. This will reveal income, age, home ownership status and other criteria to further define the target market. This information allows you to eliminate marketing for those outside your 20% group.
20 Percentage marketing strategies
Many clinics could cut their budget by a whopping 75 percent and notice only a small decrease in the response. While very detailed marketing guerrilla programs vary from one market to another, three ever-new marketing strategies – the Internet, database and integration marketing – always seem to fit into the good 20 percent category.
Through e-mails, online forums, chats, etc., we quickly became addicted to the Internet as everyday communication devices. With the increase in online security, people trust the means to carry out financial transactions. Now, local research has shown that veterinary practices can really benefit from Internet marketing. These three principles lead to successful Internet marketing: 1. Be seen by online searchers on the first page of the main and local search engines. 2. Attract traffic to a highly conversions-oriented landing page. Most operators drive traffic through their search engine rankings on their website’s home page. While this is better than pushing traffic to something of your own, it is ineffective when compared to traffic to a location-specific landing page with a strong offer and several convenient ways to contact the clinic. 3. Convert traffic to customers. A strong presence on the Internet is useless if the viewer does not convert into a paying customer. Your conversion ratio should be better than 50 percent. Create a landing page suitable for conversion as an extension of your website and optimize it on the most popular search engines. Google is obviously the best known, but do not ignore the other sites, especially because many of your competitors will ignore them.
Your existing customer database is mature with cross-sell and up-sell opportunities related products and services. Some common up-sells are pet insurance, dental cleaning and microchip for pets. Be sure to send the customer base monthly with an offer. Identify the features of the offers that interest your customers and design your letters to focus on their needs. This program is easy and profitable when forming alliances with the related service providers.
Integration marketing is a more advanced concept, but one of the most powerful in generating a solid stream of new customers at a low cost per acquisition. This technique is used effectively by McDonald’s restaurants and other fast food franchises. They integrate their product with another like a franchise film or a toy manufacturer. Look for other companies at the service of your market that can integrate the veterinary services into their offer. Examples include pet shops, grooming and boarding. When a consumer uses one of these business services, he is presented with information or even a visit to a “special price” only for “customers of the XYZ company”. This can increase the number of customers from external sources. If allowed, negotiate a commission with alliance representatives, so they are enthusiastic about the program and they work for you. By taking advantage of inequality within the customer base – the 80-20 principle – and these three evergreen strategies, 2013 could be your best year ever.
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