The 80/20 Rule

While going back over my notes and studying for the upcoming exam, I had thought a little bit more about the 80/20 rule. It is a concept that is engrained in my head in all my classes actually and holds a big role in creating success in a business. It is important to remember that you need to target the correct market to which you wish to pursue, but also remember those loyal customers who have been there the whole time giving you the desired sales you need. If 20% of your customers make 80% of your businesses overall purchases it would be benefitial to you as a retailer to spend most of your time and marketing strategies on this 20%. It is a waste of time to spend money on advertisement such as catalogs on those who probably don't have any intention on buying!