A small fraction of Americans buy the vast majority of books in this country. Goodreads gives Jeff Bezos & Co. a direct line into their thoughts and habits.
|Scooped by Vinod Poyilath|
Yet another instance of the 80/20 principle... look at the data in yellow on the pyramid. 19% of the adults in the U.S. are responsible for 79% of the book reads... and amazon was quick in putting this data to use in their purchase of goodreads, where they have found that a lot of people in this 19% usually hang out.
Point to be taken?
Find the 80/20 scenario in your business. It sure exists, and depending on the industry you are in, you might have to churn some data to find it. But trust me, that information is GOLD. It might be a bunch of customers, a small number of client companies, a few of employees, a small number of products, or just about anything, but that IS contributing to 80% of your revenue. Find that 20% and concentrate your efforts on them.
The biggest mistake you can make in any business is to dedicate equal efforts, money and time to all your customers, products, or services. Find the ones that give you the 80% value and focus on them. If it is a product or service, improve on the quality of it, if it is a group of customers, pay at least 80% of your attention to them, and if it is a group of employees in your company, make them happy and make them stick around.
You might say, "but I need to keep ALL my customers happy". I say, you just cannot do that. No company can make everyone happy. Make the best 20% fall in love with your brand and they will do the work in promoting you. Indeed as your company grows, you can have more and more of your customers in your focus list.
Again, as I always tell my clients, know your customer like your own family. The more you know about what they like, where they hangout, where they live, what tools they use, where they work, how much they earn, the more you can adapt your business to fulfil their needs and the more people like them you can find. This is exactly what amazon has done here.
For you too, this becomes all the more easy when you concentrate on your best 20%. Trust me, knowing all 100% of your customers is too much work and in the end you'll find no patterns that you can really adapt into your business.
So, what's the 80/20 in your business?