The Pareto Principle is introduced by an Italian economist - Vilfredo Pareto. According to this principle, for several results, 80% of the outcomes arise from 20% of the cause. Other variations of the Pareto principle states: 80% of the sales come from 20% of customers or 80% of marketing engagement comes from 20% of accounts.
Many researchers believe that ABM is a descendent of the 80/20 rule. By following this rule, businesses can spend the bulk on creating personalized marketing campaigns for the 20% of customers who spent the most on the product or services of their company.
How the Pareto Rule Brings Sales Growth?
In ABM, the Pareto principle can be used as a guide to overcoming the business growth obstacle and acquiring extremely productive business solutions. So here are a few strategies that will assist in bringing the resources and attention to the top 20% of customers.
1. Identify Best Customers
Companies might have hundreds or thousands of customers or prospect lists either from email, social media, or by the website. To ensure making a wise choice, it is a must to have a glance at the historical data of every account, then compare it with the ideal customer profile and determine which makes it to the list of the best customers. After finding the top customers for the business, assure to mark them as a top priority.
2. Locating Their Area
An important factor is to check the Point-of-Sale platform and find the area from where the highest number of best customers belongs to. It will lead to determining the most suitable sales or marketing strategies that can boost the growth of the organization.
3. Rank The Need Of Customers
After creating the list of best accounts or customers, try to dig a bit deeper and discover the want, need, or problems each customer has. If in case, the insight is not up to the mark, a company will have to form a team that can gather some information, by:
Tracking customer’s social media
Having a conversation with the customer
Purchasing Insights from vendors.
After finalizing the need list make sure to mark each with their importance and address them accordingly.
4. Offer Personalization Across Different Platform
Marketing according to the way that connects with each customer deeply without engulfing the resource and budget can be achieved by making the process as automated as possible through hiring developers. Some of how businesses can personalize their channels are:
Using images that shows the customer’s interested area
Addressing each customer by their name
Sharing related case studies with the customers
Including a personalized note
Remember to keep a track of the progress you made through these steps and modify your list and strategies based on them.
If used properly, the Pareto rule in account-based marketing helps a business in keeping the focus on what matters the most. It stops enterprises from multi-tasking all the time. With the help of the 80/20 rule, businesses can properly allocate time and resources to the areas that produce the best results. That being said, relocating the budget while cultivating time for referrals from the customers who generate long-term advantages is the core to sustainable growth.