Sales Leads And The 80/20 Rule

Sales Leads on Steroids

80% of your profits come from 20% of customers

80% of your profits come from 20% of customers

The “80/20 Rule” is a simple way of looking at your business sales and profit figures and identifying the largest sources of contribution. Just as people are not the same, neither are your customers.

This simple rule invites you to analyze how profitable your marketing effort is. It often leads to some surprising insights into the core of your customer base.

The principle is that, in each case we are seeking to find the source of the majority of  activity is being measured. Be sure to download the free report on “Lead Generation Secrets” by opting in your name and email address.

For example: In this spreadsheet I circled the most important core of the customer base and this is the driving source of sales since it represents 80 percent.

10-25-2013 4-40-43 PMThis method generates revenue quickly every month and every year  when executed with this direct mail marketing strategy.

Getting the lead and the appointment…it’s what lead generation is all about.

This program that combines direct mail with prospecting call campaigns to reach prospects one-on-one for increased response.

During the calls, if we find a prospect that has an immediate need we will contact you that day.

To support your sales team, in addition to making the initial prospecting call, we can send the response package and make the follow up call to set the appointment.

1. Direct Marketing List Selection Process

Which segment or niche would respond to your offer? A great way to start is by analyzing your current customer base by who recently purchased an item, do they shop frequently what is the dollar volume.

New customers will likely be similar to the people who currently do business with you.
Identify your best customers first… recent purchase, dollar amount and frequency.

The top 20 percent segment can be separated by how recently they purchased from you, but also by how frequently they purchase from you and the dollar volume they have purchased over their lifetime. Direct mail campaigns and telephone follow up calls can be set to close the sale.

Testing and segmenting the unique characteristics of your best and most profitable customers.

2. Personal Segmented Postcard

I can help you find the most profitable customer segments before spending more money on new lists. Next, we mail your list a targeted postcard by segmentation and industry and top 20%.

After segmenting your customers by demographic or standard industrial information, so you can tailor your message to match their needs and interests, and increase the chances that they’ll act on your offer.

For example if you’re a local Certified Public Accountant you can first segment your most profitable customers using the 80/20 Principle. You would than base your list selection by identifying the top 20 percent of your client base and purchase prospective lists that mirror the top 20 percent and mail a large postcard to them.

After mailing these segmented lists and postcards the next step is to set a

3. Leads – A sale can’t happen without acquiring a lead in the first place.

I have been successfully conducting lead generation campaigns for clients resulting in response rates of 10% to 30%. The campaigns include:

Direct mail with inside sales calls, print and online advertising.

Mailing response material that engages the prospect and begins to build the relationship with your company.

The follow up and setting appointments with company president or ownerproducing the print, digital and Internet components of the sales and marketing program control cost without sacrificing quality.

The next step is contacting the business owner or decision make and set appointments for your sales team in monthly cycles to reduce the chances of bad luck in these uncertain times.

More Articles on Sales Leads and The 80/20 Rule

  • All You Can Eat Leads: 10 Ways to Generate More Leads for Less – Nothing happens without a lead. No sales, no revenue, no profit, no nothin’. … But before we get to the list, there are a couple of lead generation ground rules you should be clear about. Without understanding these, you can end up wasting a lot of time and money. Ground Rule #1: Build a Value Machine for the Long Term. WARNING: This is boring, ….. I paid 80 bucks for a diy wordpress theme to see what it was and found it hard to work with and gave up. So ultimately diytheme got …
  • Should You Punish or Reward Current Customers? | MIT Sloan … – That, in turn, leads to continuous increases in customer satisfaction, loyalty and company profitability in a virtuous cycle of mutual benefits. … outspent others by 16 to 1 in retailing, 13 to 1 in restaurants, 12 to 1 in airlines and 5 to 1 in hotel/motels. 4 These are examples of the widely known (and empirically supported) 80-20 rule, with a small number of customers (20%) contributing a large amount of profit (80%).5 We define this imbalance as value concentration.
  • 80-20 Rule Applied to Outlook Emails (stay focused on real work … – For those who are not aware, this principle states that most of our results (80%) come from a small portion of our actual work (20%). An example in terms of sales is 80% of our sales come from 20% of our customers. How does …
  • The 80/20 Principle Part 2: Force Multiplication | WordStream – This is Part 2 in a three-part series on the Pareto Principle by Perry Marshall, author of 80/20 Sales & Marketing and The Ultimate Guide to Google AdWords. Read Part 1 here.The 80/20 rule is powerful because. … Maybe his most significant contribution was his principle of the Force Multiplier: A tiny advantage in firepower and manpower leads to a huge advantage in outcome: 80/20 Principle If Army A has 2 units and Army B has 3, force B has an advantage over A of …
About Tim Little

Tim G. Little has a BS in Business Administration, and has worked in the magazine publication and circulation management for the past
20 years. As an Internet Publisher and Entrepreneur, he has developed expertise in the field of strategic planning, direct market
advertising and analysis, direct mail marketing and is a specialist in developing unique and lucrative opportunities using direct response
marketing methods for business.

Speak Your Mind