Business of Craft Season 3 Episode 1 The 80:20 Rule

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#1 So, before we dive into our topic for this show, Laura, I want to remind everyone that season 3 is themed RESILIENCY. Can you say a few words about why you thought Resiliency should be our theme this season? [3:36]

#2 Let’s jump into our specific topic today starting with the 80/20 rule. Also known as Pareto’s Law. Laura, do you have a general definition for us? [5:18]

#3 This is a great segue into Customer Optimization, right? It’s a perfect first place to implement this 80/20 rule. For example, how would a yarn manufacturing company determine which yarn shops they’re going to sell to using the 80/20 rule? [7:45]

#4 At Stitchcraft Marketing I feel like we also spend a lot of time consulting with clients on how to optimize customers based on their avatar or their ideal target customer. If you’re not focused on her, you’re not optimizing as well as you could be right? [9:00]

#5 Next, let’s touch on segmenting, since that can go hand in hand with optimization. Laura, can you explain what that is and give our listeners an example? [10:45]

#6 Next we want to jump into Automation. Laura, before the break, you were starting to tell us about automation as a tool for helping with segmented audiences. Can you tell us about a few automations you currently have set up for one of the accounts you manage? [15:00]

#7 We’re near the end of our episode for today and I want to make sure that our listeners connect the dots between the things we discussed in this show, 80/20 rule, customer optimization, segmenting and automations to our broader theme of Resiliency. Laura, how do you think learning these marketing strategies would make a business more resilient? [25:10]

Key Takeaways :

  • 80/20 Rule: Pareto’s Law says that 20% of your customers generate 80% of your revenues. If you know who these customers are you can develop marketing that speaks to them.
  • Customer Segmentation: Divide your customers into groups so you can focus your efforts on the customers who will bring you the most revenue. You can build out a Customer Avatar (linked below) which will help you create marketing campaigns and products and services based on your ideal customer.
  • Building out Technology: Create and/or continue your virtual communities and shopping opportunities so you can pivot as necessary if in-person sales become difficult.
  • Invest in creating automations where you can. Get some tasks off of your plate, so you can focus your time on creating the most value for your business.
  • Continue to build trust through shared values. Customers are increasingly examining the brands they support looking for commitments to issues they feel are important. Climate change and safety/security are just two of those concerns.

ADDITIONAL RESOURCES

Connect with Laura:  The Corner of Knit and Tea | Twitter | Pinterest | Instagram | Stitchcraft Marketing