The Wrong Way to Market

The 80/20 Rule Is Dead

Author

Jeevan Kesavan
April 07, 2025

The 80/20 Principle (20% of customers drive 80% of results) worked in the 1980s when markets were broad and mass communication ruled. Don’t use that to market to your customers today.

Today’s Reality

  • Hyper-personalized experiences.

  • Niche targeting.

  • Fragmented attention spans.

Blindly focusing on 20% of customers leaves money and future growth on the table.

What Is the 50-30-20 Rule?

Think in terms of Revenue, not Customers:

It's not about serving all customers equally — it's about serving them in proportion to their potential.

Why 50-30-20 Works

  • Precision: Targets different strategies for different revenue groups.

  • Growth Path: Identifies not just current winners but future high-value customers.

  • Efficiency: Optimizes marketing, service, and sales resources.

  • Scalability: Builds a foundation to grow sustainably, without burning out teams

Where You Can Use It

  • Marketing Campaigns:
    Personalize offers for your top 50% revenue drivers. Use automation for the bottom 20%.

  • Sales Strategy:
    Invest more time in the 30% who are ready to become top accounts.

  • Customer Success:
    High-touch service for VIPs, proactive nurturing for the growth segment.

  • Product Development:
    Build features for the customers contributing to your future, not just today's VIPs.

Quick Summary