Top Market Strategy

4.2 Application to Profit From Customers

A new application of the 80/20 rule increases business profit.

This book explains how you can use the 80/20 rule to increase your profit from customers. You will learn to segment your customers by their profitability and to replace less profitable customers with highly profitable, new customers.

Table 7. Applications of the Pareto Distribution

Years and authors	Affiliations	Applications	Documents and conclusions
1896–97Vilfredo Pareto	Chair of the Department of Political Economy, Lausanne University	The top 20% of income earners own 80% of the wealth.	Cours d'Economie PolitiqueThe number of events larger than ...