Wieden + Kennedy New York Respond To PSFK’s Future Of Retail Report
MARKETING LAGNIAPPEPARETO’S 80/20PRINCIPLEFlipping Traditional Marketing on its HeadCUSTOMER BASEWHAT IS PARETO’S PRINCIPLE?80% 20% Effort Results“80% of the effects come from 20% of the causes” - Wilfredo Pareto, 1906THE PHELPS 80/20 COROLLARY“80% of your traditional marketing will net 20% of your results” "Half the money I spend on advertising is wasted; the trouble is I don't know which half."- John WanamakerTraditional push marketing is largely ineffective . . . Consumers are bombarded with 3,000 + messages per day Photo Credit: Gary LarsonAwarenessInterest80% of a traditional Desiremarketing budget focuses on prospective customers and Actionreturns pennies on the dollarBecause 80% of your marketing is inefficient, you may only be increasing your customer base by roughly 10 to 20% per yearBut you may lose 10 -20% of your customer base each year through attritionFACT:FACT: It costs 5 to 10 times the amount of money to acquire a new customer than it does to keep a current oneWhat if you put 100% of your focus and more importantly your marketing budget
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