20% of the search engines shares the 80% of web searches.
80% of the users searches only 20% of search engines. What a wonderful principle Pareto discovered in 1845. It is applicable to any thing even if today.
Ever remember that your senior told you about Pareto’s principle or ask you about 80/20 rule. I recalled long ago about one of my Team Leader as well as my mentor (then) often use this term to teach me the basic rule of marketing, while counseling with me in my early days. I was a raw marketing executive who just know to slog into the market without thinking any thing else.
Pareto’s principle is one of the most common terms used in marketing and better known as 80/20 rule. Often people quoting that 20% of your customers are giving you 80% business. Vifredo Pareto, an Italian economist, formulated this well-known principle in 1895 and it applies to every business. Below is the abstract of his well-known principle:
“In any series of elements to be controlled, a selected small fraction in terms of number of elements almost always accounts for a large fraction in terms of effect.”
Focusing on 20% customers in your customer base can give you 80% of your sale. If you calculate the volume given by your existing customers and focus on 20% who gives you high value or volume, your target meets the 80%.
Another example is product quality control management where if you actually figure out, 20% of the defects are causing 80% of the problems. Dr. Joseph Juran, in 1940s described the 80/20 rule’s applicability to industrial quality control.
One more classic example of applicability of this principle in Indian contest is, if you analyze the annual sale of multi product selling MNC’s. The most of the sale volume are actually on 20% of there core products and rest are gaining there market share.
To conclude one more example for you
In any sports 80% of the medals are won by 20% of the peoples.
