{"id":52336,"date":"2026-04-20T15:41:49","date_gmt":"2026-04-20T15:41:49","guid":{"rendered":"https:\/\/digitionary.com\/glossary\/pareto-principle\/"},"modified":"2026-04-20T17:18:59","modified_gmt":"2026-04-20T17:18:59","slug":"pareto-principle","status":"publish","type":"glossary","link":"https:\/\/digitionary.com\/en\/glossary\/pareto-principle\/","title":{"rendered":"Pareto Principle"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In the field of marketing, the Pareto principle, also known as the 80\/20 rule, highlights the observation that in most businesses, a minority of customers generate the majority of revenue. Based on this rule, 80% of revenue typically comes from only 20% of customers. Pareto originally promoted this non-linear distribution model to illustrate the concentration of wealth within the population.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is important to note that in practice, the 80\/20 rule is not always applicable and varies considerably depending on the industry. For example, this principle is only minimally applicable in the TV subscription sector, to a limited extent in the mobile phone sector, and marginally in mass retail. In some sectors, as in others, a distribution more closely follows the 90\/10 rule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Invoking the Pareto principle primarily highlights the importance of focusing on the most profitable customers within a loyalty strategy. By understanding this dynamic, companies can optimize their efforts and resources to retain and satisfy their most valuable clientele.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the field of marketing, the Pareto principle, also known as the 80\/20 rule, highlights the observation that in most businesses, a minority of customers generate the majority of revenue. Based on this rule, 80% of revenue typically comes from only 20% of customers. Pareto originally promoted this non-linear distribution model to illustrate the concentration [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","meta":{"wds_primary_glossary-categories":0,"footnotes":""},"glossary-categories":[82],"glossary-tags":[],"class_list":["post-52336","glossary","type-glossary","status-publish","hentry","glossary-categories-crm-customer-relationship"],"_links":{"self":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary\/52336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":0,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary\/52336\/revisions"}],"wp:attachment":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/media?parent=52336"}],"wp:term":[{"taxonomy":"glossary-categories","embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary-categories?post=52336"},{"taxonomy":"glossary-tags","embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary-tags?post=52336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}