Increase Productivity: Ways to Apply the 80/20 Rule
What if you come to know that the mindset of 1906 can help in increasing productivity in 2017
Let’s talk about the 80/20 Rule- the Pareto Principle.
The 80/20 Rule was named as the Pareto Principle and was name after the Italian economist Vilfredo Pareto, in the year 1906 he observed that 80% of land in Italy was owned by 20% of the total population. He later was able to showcase his surprising observation in a mathematical formula that is now commonly known as the 80/20 rule. The 80/20 rule can be applied to every field of any business ensuring that business processes are functioning to its full potential.
In any business, the number of products and services are created to service different client’s needs. What here you need to explore is, what all services are failing to appropriately address their needs.
According to the Pareto Principle: 80% of your complaints from 20% of the services that you are offering.
Keeping a track of your negative feedback and the poor reviews is the key to applying the Pareto Principle adequately. The thing, like tracking and monitoring data, could help you in gathering this type of information. As soon as you get this data; you are ready to go exploring that which 20% of your services is problematic.
The Pareto principle helps you with hunting your own niche clients and later using them for boosting up your business.
The Pareto Principle: 20% of your revenues come from 80% of your clients.
Understanding the statistics at work with this application isn’t terribly complex. You can likely already understand that how much money each client is generating your business. But do you have any idea that how those numbers relate to each other?
You can rank all of your clients on the basis of how much revenue they are generating. By keeping in the foreground of your head, if the top 20% of your clients are making 80% of the total revenues?
The basic need for productivity is the focus, goal orientation, and outstanding task management skills. One of the superior enemies of productivity is Distraction. If you are looking to conquer the world, you have to defeat it.
Applying the Pareto Principle here: The 80% of your distractions come from 20% of sources.
Setting up goals directly puts you in the driver seat that gives you the power of transforming your own work into whatever direction you wanted it to be.
Here’s the vital thing- Sales. The success of your failure hinges your ability to gain weight and convert them into sales. The scenario becomes complex when it comes to a freelancer or a small business owner, it becomes very hard to spend time on sales solely.
Again, applying the Pareto Principle: The 80% of total sales come from 20% of your efforts.
Formation of a correlation between efforts and sales is quite difficult and it requires some great efforts. You’ll need to retrace every sale but also by heading back to the effort that created it. The things that you explore has the potential of exploding your business. You can not only boost 20% of your efforts producing the most revenue but also eliminate the remaining 80% of your efforts while bringing back your business to productivity.
Marketing is that crucial element that helps in bringing in those new leads that are the requirement of your business. Do you have any idea of how Pareto can add wonders in your marketing?
Applying the Pareto Principle to marketing: The 80% of your leads come from 20% of your website forms.
Many of the websites have various website forms; like an email opt-in form, the content upgrades and the rest of the forms that are used for gathering customer data. Along with this, the powerful tools allow you to see the conversation ratios of each area.
These ultimate applications are not one-shot fixes but are a part of your daily workflow. You can regularly focus on these applications and can quickly lead your business towards growth.
Have you noticed the 80/20 rule being applied somewhere else? We would love to hear from you as well. Keep sharing your comments in the comment box provided below.
I like this site very much, Its a real nice place to read and obtain information. “Words are like leaves and where they most abound, Much fruit of sense beneath is rarely found.” by Alexander Pope.