In Part 1, we talked about the results of a recent 80/20 Analysis we conducted for a Revenue Conduit customer.
We found a number of customer segments that were all but invisible prior to the 80/20 analysis.
One big revelation was that only 10% of their customers accounted for 50% of revenues.
Another big revelation was that a full 85% of customers had only bought once.
When conducting 80/20 analysis, we always look for “low-hanging fruit” campaigns – campaigns that offer a relatively easy and immediate source of revenue and profit.
Campaigns that not only pay for your initial investment in Infusionsoft, Revenue Conduit and consulting but also provide an immediate ROI that can be further invested in even more profit-generating campaigns.
The biggest “low-hanging fruit” campaign was to get a second purchase from the customers that had only bought once. Knowing that the customers that had only bought once also differed based on the data of their last purchase, we also decided to further segment them into three groups – customers that last bought more than six months ago, customers that last bought between four to six months ago and customers that last bought within the last four months. Read more