Ever heard of the Pareto Principle? It has its own entry on Wikipedia, so I expect you to know what it is (just like how I expect you to know all of Wikipedia’s other 5.5 million articles).
If you aren’t familiar with it, it goes by many names and applies to several industries, but hey, we’re an ecommerce blog! ‘Round these parts we know the Pareto Principle as the 80/20 Rule, which states 80% of profits come from 20% of customers. (The guy who came up with the theory, Vilfredo Pareto, noted in 1906 that 80% of the land in Italy was owned by 20% of the population, after observing a bunch of pea pods, so who knows how we wound up here.)
But there’s a reason why Pareto’s principle has prevailed a century on. I mean, other than the fact that it’s surprisingly accurate, it’s also easy to digest and to apply to different concepts. So what makes it so great when you’re running an online business?