I bought Richard’s book 20 years ago, and it transformed my analytical team’s approach to understanding our banking customer’s profiles – from both a customer value and marketing opportunity perspective.
We applied Pareto to our Activity Based Costing metrics for banking customers, and it helped to surface our customers with the best customer lifetime values. It also helped focus our outbound marketing efforts to grow the lifetime value of segments with identified potential.
Whilst the rage these days in analytics is machine learning and cognitive computing, I still come across many IT analytics professionals who have never applied this simple technique to help focus business users on the most meaningful business results. They are now wanting to go from low information content BI dashboards, to predictive advanced analytics, without having ever used this very simple technique.
If you’re not using this in your marketing efforts, you’re leaving money on the table, as wasting a lot of your time. Go simple before you go complex …