80 20 rule in digital marketing

Following 80 20 principle and our own expeirence 20% of your users give 80% of profit for most of the businesses. The proportion can be slitly different, for example 30% to 70%.  Not all users are equal for your marketing, some customers create more problems than profit.

You need to identify to the top user segments and maximize outcome from them. 

In this article we would share how to use Google Analytics to earn more by doing less. Google Analytics can help you to perform 80-20 analysis for your business segmenting users based on their importance so you could sell more to your best customers.  



This are 2 main steps: 

  1. Determine the most valuable users in Google Analytics using 80 20 analysis 
  2. Individualize content for most valuable users using Google and Facebook Ads

1. Determine the most valuable users in Google Analytics

Before you can start analysis make sure that you have enough historical data in Google Analytics. It doesn’t make sense to perform 80 20 analysis if you had only 5 transactions in the last 30 days. 

Also make sure that you are tracking all important user actions such as purchase, add to cart, form submit etc.

Once it’s done you are ready. You would need to check several reports: 

What age group gives 60-90% of my income? Check this info in Audience reports.

50% of sales come from 18-24, 80% of sales come from 18-34

Action steps: 

  1. Create a remarketing list for the most profitable age, in our case, it would be 18-34.
  2. Set bid adjustments in Google Ads search campaigns to bid higher on these users.
  3. Set targeting in Facebook to this age groups.

What gender gives 60-90% of my income?

Action steps if you have a big difference in conversion rate between male and female: 

  • Exclude not profitable gender both from Google and Facebook ads.

What landing pages get most of the traffic? 

Some users might have checked pages related to specific problems.

Action steps:

  1. Think how you can optimize pages which don’t give any value. First landing page makes first impression about your brand so it’s very important to make sure that it’s well optimized.
  2. Think what makes your most profitable landing pages so effective.

Is the conversion rate from different devices different?

Huge problem with mobile version

Action steps:

  • make sure all pages of your website are mobile friendly
  • set bid adjustments for specific devices in Google Ads
  • exclude low performing devices and placements
  • consider creating AMP landing pages

What geo location gives most of the income

There is a huge problem with traffic from 1 specific city. Developers need to have a deeper look at it.

Action steps:

  • add bid adjustment in Google Ads to get more traffic from most profitable locations
  • create separate ad set for users from most profitable locations

Other interesting reports:

  1. What 20% of referrals bring 80% of income? Negotiate to maximize traffic from these referrals.
  2. What micro conversions have the highest influence on macro conversion? For example, if it’s e-commerce then it would be abandoned carts and page depth – users which added something to the cart and who visited more then 4 pages on your website are more valuable compared to “all users”.Action step – create a remarketing list for users which have made the most valuable micro-conversions.
  3. Which is the most effective hour of the day/day of the week? This report is available inside Google Ads.
  4.  How many days does it take to complete the transaction? Depending on your business model it takes from 0 days to several years for a person to perform a transaction. Check “time to purchase” report in Google Analytics.  
  5. Is there a time period in the year when the client gets most of his purchases. Smth like black .
  6. What product or service has the highest conversion rate? Have you considered bundles?

Action step – be proactive during these days. If it takes 7 days for sale to happen, create a separate remarketing list for people who have visited the website in last 7 days and didn’t yet purchased.  

Based on the answers you can make a mental photo of your ideal customer. In my case, it was a business owner of US/Norway/Canada, male, between 25 and 50 years old. It took 2 weeks to make a purchase decision on my website. He paid special attention to Google Shopping articles which probably means that he has an e-commerce business which is struggling to move their Google Shopping strategy forward.

Individualize your content

During Google Analytics analysis you have identified lot’s of segments and created a separate remarketing list of each of those segments. Now you can create a separate ad for each of those segments both in Facebook and in Google Ads.

Most of the advertisers just use 1 list – “all users” and still get profit from remarketing.

But could it work much better? Definitely yes. Remarketing should become the leading revenue source. In order achieve that you can individualize content for each of remarketing list you’ve created.

There are a few important things to remember:

  1. Consistency between your ad and landing page. Your ad creates some expectations. Be sure that you meet them on your landing page.
  2. Storytelling.  Don’t be boring – show your personal face to the customer and share your story.
  3. Give educational content. The best way to sell is to showcase the high level of your expertise and give some value for free.

Content would be different depending on your business model and remarketing list. Let me give you some examples:

  1. Specific micro conversions. For example cart abandoners. This is one of the most straightforward examples. In order to target people who added something to the card but didn’t purchase you set up the dynamic remarketing campaign.
  2. People who have consumed educational content. These people are not always your customers in a short term. But from a long-term perspective, they might turn into your most valuable repeatable customers. You can ask them to subscribe to an email list instead of making the macro conversion.
  3. People who have visited pages related to specific problems. If you know what kind of problems do they have you give them educational content on how they can solve that problem. If you have educational videos you can remarket those users on YouTube with educational content and then show a conversion offer.  
  4. Through geolocation. I always showcase in ad and landing page business address so people who are in a few kilometers from my business location will come to visit me. You can create a separate campaign for that.

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