It is very likely that you have heard about the Pareto Principle , that you have encountered it in your university lessons or in that management course you did some time ago, perhaps you have heard it named as the 80-20 rule, the vital few or principle of factor shortage. But do you know how to apply it to get successful business?
This law announces that 20% of the effort generates 80% of the results, which is why it is known as Law 20/80. This principle has been proven in many business areas, but today we will explain how to use it to boost your productivity.
Pareto discovered that there was an almost exact ratio of 20/80 in many areas of everyday life. Although at first the law was raised by aspects related to the possession of land, later it was shown that it operates in different areas.
The Pareto principle, as its name says it is a principle, not an inviolable law of the universe, what it really represents is a trend.
The Pareto Principle in Action
Eighty percent of your income comes from 20 percent of your buyers
This is one of the most common observations of the principle. Fortunately it is very simple to check in every one of the businesses. If you find that most of your income comes from 20% of your buyers, then make sure you are working hard to retain and treat them well.
In addition, you will want to find more consumers like them, for this you must detect who confirm that 20% and that they have in common:
Identify those consumers who have recently purchased, frequently and who have spent more.
Find out where that 20% came from, the channels they followed, the ads through which they became and the content they connected the most.
Perform demographic and psychographic studies to that 20%, the more you know them, the better you can point them.
You have to invest the most efforts on your best consumers, and try to understand them to get more.
Eighty percent of your online sales come from 20% of your products
What products do you sell? Probably when you analyze your product portfolio you will realize that you have some star products that are the ones that generate the most sales, when you do they probably represent 20% of your portfolio. These are the products in which you have to put more effort, the ones that you must promote and press in the market. If they are the bestsellers it is for a reason, so take advantage and take advantage of them.
The Pareto Principle and Effectiveness
In terms of productivity, the 80/20 law says that 20% of your tasks carry 80% of your results.
Make a list of 10 pending tasks. By organizing them you will notice that the first two will lead to approximately 80% of your responsibilities.
Just as we mention two examples in business and sales, so does personal productivity, which is fundamental when starting new businesses.
Next we will review a method based on the principle of Pareto that is thought to boost productivity.
This principle provides you with a system of priorities to validate new tasks against obligations.
Turn your daily to-do list
Usually we wake up and do a review, or mental, of the tasks that we have pending. One of them will probably take 10 times more time than the others, so we usually put it at the end, always finding other things that surpass it. The time has come for you to seek strength within yourself and do it now! Remember that the goal is to do 80% of the things you have pending with 20% of your tasks.
Make proper use of your free time
We do not mean your weekends or rest days, we mean that time you spend watching Facebook, or responding to all messages on your mobile, or even the one you use when you opportunely remember that you have to put the laundry. Time is gold, and the more you take advantage of it, the more effective you will be.
Among your tasks you must have the task of “doing nothing”: take some time for yourself, a planned time in which work does not overwhelm you, because you know that the rest of the time you will invest in productive tasks. There is nothing more stressful than to be doing something that perhaps is not what we should be doing knowing that there are a couple of to-do tasks that would take away the greater burden of your responsibilities from above.
Using the 20/80 for productivity is a key factor if it is well implemented. It is about being methodical, organized and knowing how to prioritize. It’s about killing the monster of procasting and getting the most out of time.
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