Author: Peter Szanto / Source: Business 2 Community The Pareto Principle states that roughly 80 percent of the effects come from 20 perce
The Pareto Principle states that roughly 80 percent of the effects come from 20 percent of the causes. To put this into a business perspective, most of the time a smaller percentage of clients account for the majority of income. With this post, we’d like to help you find people who fit into this category using Facebook adverts and social analytics tools.
The Pareto Principle is named after Vilfredo Pareto, an Italian economist who published a study in 1896 to prove that 80 percent of the land in Italy is owned by 20 percent of the population.
Since then, from engineering to e-commerce it has been used in many fields as a rule of thumb, besides agriculture. And while the exact numbers may differ, many business owners are convinced that the majority of their income comes from a small group of clients.
In theory, if you could find people who have similar characteristics to this core group of customers and call their attention to your business offer, you could increase your revenues significantly.
If you are running a successful e-commerce site or an online service, finding your 20 percent and learning about its characteristics isn’t as difficult as it sounds. You have several tools at your disposal that can help you achieve this.
First of all, you can simply look at the data about purchases or subscriptions and collect the email addresses of those visitors who regularly purchase at your store, spend the most amount, or have been subscribing to your service for the longest time.
Once you create a list like this, you’ll be able to target users on Facebook who share similar characteristics to your most loyal customers.
For this to work, you’ll need to create a custom audience from the email addresses that you’ve collected. Here you can find a detailed description about how you can do that. When you’ve uploaded your list, create a lookalike audience from your custom one and target them with your adverts.
If you were able to compose the list accurately, this method will very likely bring the right kind of visitors to your site.
Of course, the more you know about your audience, the better your results will be.
There are many methods of researching your audience…