By Stefan Willimann , Practice Lead, iSOCRATES
At iSOCRATES, we believe that certain processes effectively guide and instruct the B2B marketer to optimal performance and maximum ROI. Furthermore, an understanding of B2B marketplace realities is essential to appropriately apply these principles. The proper understanding of data can reveal these realities while the proper use of data can inform application of the principles.
Price’s Law (or the Pareto Principle), is a phenomenon that economists, and even scientists, have recognized as a fundamental aspect of both human interaction and the natural world. Simply stated, it’s the uneven distribution of resources or productivity to relatively few within a particular domain. The size of cities, the height of trees in the Amazon Rain Forest, the size of galaxies, and even sales and profits reflect the Pareto Principle. In business, we observe the principle in the fact that about 80% of your sales comes from about 20% of your customers.
What does this fundamental landscape of the business world mean? It means that how and to whom you apply your marketing efforts affects the bottom line.
With this law in mind, there are two approaches that work best for all marketing efforts.
Align the most important aspect of your marketing efforts.
- Prior to implementing any marketing efforts, if you and your team define one metric, for example lead generation, as most salient, you will drive the effort in a more focused manner. A focused marketing effort is much more likely to land a client who will be in the 20% that generates 80% of your sales.
Create a roadmap to incorporate each marketing activity into a larger body of efforts.
- Just as sub routines make up your morning routine, each sub marketing effort should have a directed purpose that is part of the overarching marketing effort. While seemingly obvious, if your business moves from one effort to the next without a thematic thread, then maximum efficacy of your effort is lost and ROI will be average to poor.
Once solid methods are in place, an easy extrapolation from your data will give insight into your winning tactics. Insights into your winning tactics can easily create the optimal approach for all platforms, digital, email, social or otherwise that maximize ROI.
For a deeper analysis of this topic, we invite you to explore the attached eBook B2B Data 101, and subscribe to our blog for other compelling content related to data and how it can work for you
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