What’s it all about?

Most business owners spend all day juggling their priorities

and – although vitally important – time spent on marketing
and business growth often plays victim to the more immediate
demands of customers, staff and admin.

Anyone who has ever read Michael Gerber’s definitive ‘E-

Myth’ will identify with his ‘technician / manager /
entrepreneur’ triangle, where the ‘entrepreneur’ role is always
the loser in the battle for time allocated.

I work with micro business owners A LOT! It’s what I do. They
are the people I understand the most and with whom I
identify wholeheartedly. After all, I am one.

Specifically, my niche is ‘business owners who still carry the

primary responsibility for business growth and marketing on
their shoulders’.

The reason that I am that specific is because I know these

people are overwhelmed. They juggle all day, every day. Staff
who don’t turn up. VAT that needs to be filed. Payroll that
needs approving and triggering in the bank. Talking to an
unhappy customer. Getting a quote out that’s already 2
weeks overdue.

Vanessa Lanham-Day ©2017 P a g e | 2

And that doesn’t even take into account the doing of
whatever they do; the designing of logos; the manipulation of
accounts; delivery of training; or managing a client’s
recruitment campaign; or whatever else it is they DO. Their
‘thing’.
So how does marketing and business growth compete in such
a time-stressed environment? Where do you find time for
being an ‘entrepreneur’ and driving your business forward in
a sea of day-to-day responsibilities?
Which is why the ONLY sensible way forward is one that
embraces simplicity, rather than guaranteeing complexity.
And that’s why the PARETO Principle – the 80/20 rule to you
and me! – can be so powerful. It simply focuses the mind only
on what’s important and limits the time and energy spent on
activities that will deliver poorer returns.
I hope the following pages help you on your simplified
marketing journey.
Vanessa Lanham-Day
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
The origins of the Pareto Principle
According to Wikipedia, “The Pareto Principle (also known as
the 80/20 rule, the law of the vital few, or the principle of
factor sparsity) states that, for many events, roughly 80% of
the effects come from 20% of the causes.”
It is essentially a ‘rule of thumb’ that can be easily applied in
many and varied situations. It was named by Joseph M. Juran
who first defined the principle and named it after Italian
economist Vilfredo Pareto, who had noted the 80/20
connection while at the University of Lausanne in 1896.
Essentially, Pareto showed that approximately 80% of the land
in Italy was owned by 20% of the population. He also
observed that about 20% of the peapods in his garden
contained 80% of the peas!
Some interesting examples of the Pareto Principle
In sport…
 It is said that about 20% of sportsmen participate in 80%
of big competitions, and that of these, 20% win 80% of
the awards
 The Pareto principle has also been applied to training,
where roughly 20% of the exercises and habits have 80%
of the impact
Vanessa Lanham-Day ©2017 P a g e | 4
In software…
 Microsoft noted that by fixing the top 20% of the most-
reported bugs, 80% of the related errors and crashes in a
given system would be eliminated
 In load testing, it is common practice to estimate that
80% of the traffic occurs during 20% of the time period
In Health & Safety …
 Where 20% of the hazards account for 80% of the injuries
And in crime…
 The Dunedin Study has found 80% of crimes are
committed by 20% of criminals
Can I scientifically prove my versions of the Pareto Principle,
as applied to marketing and business growth activity? Not in
all cases, no.
But, will it change – and simplify – your thinking and
approach? Without a doubt!
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
1
The Pareto Principle and
your positioning
Ask yourself…
“Who are the 20% of the competition who
are getting 80% of the results?”
This is a very interesting one. One of the talks I often deliver to
business owners is called ‘Thinking like the 1%’.
This taps into the famous piece of writing by Mark Twain –
written the best part of 150 years ago – which began …
‘Whenever you find you are on the side of the majority, it’s
time to pause and reflect’.
He went on to say …
“The majority in your business, industry or profession are
wrong about most – if not all – of their beliefs about how
to be successful in that business, industry or profession.”
He continued …
“That’s a difficult truth to wrap your head around, but this
fact doesn’t lie: 95% of them earn a great deal less than
5% do. Only about 1% becomes rich through their
businesses – compared with at least 20% to 50% who
barely eke out a living or fail.
Vanessa Lanham-Day ©2017 P a g e | 6
 “EVERY population divides roughly into 1%, 4%, 15%, He is, of course, describing the 80/20 rule. The
40% and 40% groups. Many more at the bottom than
Pareto Principle.
at the top.
When I talk to business owners, I often quote ‘accountants’ –
 Generally, 1% rich
and my apologies if you are one! – where you could quite
 4% prosperous
reasonably, in most cases, replace the logo at the top of their
 15% doing well
website and the names of the team, and nearly all
 40% sustaining only mediocrity
accountancy websites are interchangeable.
 40% doing poorly
After all, accountants are not, by nature, risk takers and
“The stats are constant. Within a particular business
standing out from the crowd would certainly be counter-
population, they rarely change and then only slightly and
intuitive to most.
briefly. The stats are the irrefutable evidence convicting
majorities of mental and behavioural malfeasance. They are always ‘committed to their clients’, and are ‘proud
of their high levels of service’. They always ‘listen to their
“YOU may choose to move from one group to another
customers’ and they offer a ‘very personalised approach’.
by “moving” your ambition, thinking, acquisition and use
The implication being, somehow, that other accountants
of information, initiative, effort. But, regardless of your
routinely
choices, the fact that the majority of your peers are
do not!
dead wrong won’t change a whit.
My point here is simple. Of course, observe your competition
“The first critical decision for upward movement is
and understand what you do / offer relative to the key
ALWAYS distrust the majority. It’s not an easy decision to
players in your sector.
make. It’s even harder to stick to. To see the majority
stampeding north and stubbornly turn south. Not easy at But if you are going to mirror what someone else is doing, you
all. To remember that whatever ‘everybody’ is infatuated need to be VERY certain that this is both working and
with you should spurn, a damnably difficult task.” delivering results.

KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing Vanessa Lanham-Day ©2017 P a g e | 8
2
The Pareto Principle and
your audience
Ask yourself…
“Who are the 20% of customers who are
generating 80% of the profit?”
This is a GREAT question to ask. Particularly when you ask it in
relation to this question … ‘Who are the 20% of customers who
are generating 80% of the grief?‘
Because far too many business owners spend far too much of
their time responding to the needs of their most troublesome
customers – simply because they feel they have no choice as
they’re the ones making all the noise.
But, of course, you DO have a choice. In fact, it’s the one
freedom we business owners have in abundance – the choice
to paint whatever picture we choose.
Imagine how different your business would be if you chose
only to work with the customers who pay the most and those
who most value what you do for them.
 How much more effective would you and your team be
day to day?
 How much more positive and rewarding would the
business atmosphere be?
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
 How many more - and better - opportunities would be
open to you?
You could, if you chose to, simply manage out the poor
paying, minimum spending and difficult clients. For example,
you can…
 Give them notice of a significant price rise – one you
know they won’t accept
 Tell them straight that you no longer feel able to support
their needs effectively – wish them well and say good
bye
 Move lower paying customers to a ‘partner’ business that
is better suited to serve their needs
And before you say … ‘but I just couldn’t do that!’ or find
some other reason why clinging on to these energy-sapping
and painful customers is somehow essential in your business,
ask yourself …
“Who are the 20% of customers who responsible
for 80% of our non-profitable work?”
Meaning these people aren’t just costing you time – they are
costing you money! Any income they generate is simply
outweighed by the financial losses they incur.
Just picture how life would be if ALL your
customers were like your BEST customer!
Vanessa Lanham-Day ©2017 P a g e | 10
 3
Of course, this principle doesn’t just apply to CURRENT
customers. Potentially its best application is in your search for
NEW customers; ones that reflect the characteristics of your
best customers and the people prepared to pay the most.
The Pareto Principle and
Customers whose very situation means that they will always
value you more.
your products
Meaning you should ask yourself … Ask yourself…

“What are the 20% of characteristics that “Which are the 20% of product features
80% of my best customers share?” that 80% of customers want?”
It might be a specific pain point, or stage in their It’s very easy to get carried away developing a myriad of
development which means that their need is much more products, services or features. Endless tinkering, tweaking and
acute, and hence they will always value your help more. redesigning.

And what about THIS ‘double whammy’ question …  Things you could do.

“Who are the ‘20% of the 20%’ of customers  Things you’d like to do.
who are contributing 80% of  Things that are possible to do using the fancy wotsit you
the most profitable work?” invested in.

Now that one REALLY sets you thinking! How could you design  Things one or two stray clients have asked you to do.
products and packages that would appeal to the very
highest paying few? People for whom ‘the money’ is But this Pareto Principle forces you to focus on only the things
massively less important that VIP service and exclusivity. that deliver value to the majority.

My point is, when time is short, DON’T waste your time on the Consider just how much slicker your operation could be if you
‘bottom feeders’ in your world, as they are a massive drain on were simply providing a smaller range things for that applied
your time and energy. You could invest both to much better to more people.
effect – particularly the effect on your bottom line.

KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing Vanessa Lanham-Day ©2017 P a g e | 12
Think of the impact on …
 your processes
 your quality control
 your marketing and even your website
 your staff training and effectiveness
 and the reduction in confusion around ‘what should I
buy?’
Remember that time you went to a restaurant that offered
you a 12-page menu with every world cuisine and option
under sun.
Did it make it easier for you to choose? Or harder? Compare
that to a simple ‘3 choices in each course’ menu written on a
single menu sheet.
Now, of course, some businesses are built on their ability to sell
a very wide range – the retail sector routinely stocks hundreds
– even thousands - of lines.
But even these businesses need to analyse what’s being sold
and to focus only on the
most popular lines.
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
Product design thinking
Developing new products as a small business owner isn’t easy.
We don’t have the resources of a bigger businesses, so
focusing on just a SMALL range of really effective products
makes perfect sense and is massively easy to deliver.
It certainly makes it far simpler for your customers to know
exactly which product they need – whereas a range of
options might only succeed in forcing them to choose ‘not to
choose’!
Can I hear you saying … ‘but I’m a consultant and I don’t
have ‘products … it’s ME my customers are buying’?
Well, think again I say!
‘Productising’ what you do is VERY powerful and allows you to
more easily demonstrate valuable features to your customers,
making it much easier for them to assess what you do – in
relation to their needs – and ultimately to make a buying
decision.
With proper ‘products and packages’ you can then
powerfully address the ‘20% of features that 80% want’
question.
Vanessa Lanham-Day ©2017 P a g e | 14
Valuable lessons from the motor sector
We all have the opportunity to develop multiple products
features and benefits. But understanding the specific features
that are MOST powerful and appeal to MOST of your
customers certainly focuses your marketing and sales
approach.
For example, just think about buying a new car, with the
DOZENS of added extras that you COULD buy. Where do you
start?
However, car manufacturers have been very smart in
creating product bundles that bring together the most
popular features – the sport package; driver comfort;
navigation plus; and so forth.
Of course, this makes it MUCH easier for customers to not only
spend but to spend MORE! The ‘no brainer’ appeal of a
bargain bundle.
You might not be a grand car manufacturer, but there is most
definitely a version of this approach and thinking that is
directly applicable to you and your business.
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
4
The Pareto Principle and
marketing
Ask yourself…
“What is the 20% of marketing spend that
is delivering 80% of the results?”
When you are struggling to find time to deliver your marketing
plan and business growth, it makes absolute sense to focus on
the activities that are delivering the best results.
It makes perfect sense. Of course, it does.
However, there is fundamental problem – which is that most
business owners have absolutely NO IDEA which activities are
delivering any form of result, at any level.
Such as…
 How many leads is each activity delivering?
 What is the cost per lead for each channel?
 What is the cost per customer?
 What is the ROI for each element of the marketing mix?
 What is the average life-span of a customer
 What is the average lifetime spend (in £s) for a customer
In all conscience, could you answer each of these questions
for your business?
Vanessa Lanham-Day ©2017 P a g e | 16
Which means you have a serious problem applying this
principle and I’d suggest you adopt the following pragmatic
approach …
 Define your ‘top three’ marketing channels – in the
absence of quantitative information, use ‘gut feel’ to
define what’s working
 Focus on making these 100% effective – close every loop-
hole in the process
 Do lots more of them - so that you can gather vital
information
Meaning you now MUST monitor …
 What each activity/channel has cost you
 How many leads each delivered
 How many customers each has delivered
 The customer spend for each activity/channel
 The potential lifetime spend for each activity/channel
 And hence the ROI – and potential ROI - for each activity
/ channel
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
The $64,000 question …
OK, so let’s assume you CAN answer the ‘money questions’
(and maybe you can?) and let’s assume you DO know which
20% of spend is delivering the majority of the results …
… what if you were to reinvest the least performing 20%, 40%
or even 60% of your marketing spend into your best
performing channels?
What difference would THAT make to your ROI and
bottom line?
When you do THIS calculation, you’ll find the numbers VERY
revealing.
 Let’s say you spent £42,000 on marketing – delivering
£290,000 in gross profit. 590% ROI.
 The top performing 20% (£8400) returned £92,200 GP
ROI of 997%
 Whereas the bottom performing 20% (£8400) returned
£7,400 GP ROI of just 12%
 By reinvesting the bottom performing £8400 in the TOP
performing channels…creates an increased GP = £84,800
 Resulting in a total GP of £374,800 – and elevated overall
ROI of 792%
Vanessa Lanham-Day ©2017 P a g e | 18
Another VERY useful Pareto questions you
should ask yourself…
“Who are the 20% of the sales team that are
responsible for 80% of the sales?”
If you have a sales team and are not properly monitoring
them individually and accurately, it could well be costing you
dear - both in terms of wasted salary and in lost sales.
When you know ‘who’ is working best, you can get rid of the
dead wood and focus on recruiting more of the type of
people who WILL succeed in your sector.
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
5
The Pareto Principle and
your processes
Ask yourself…
“What are the 20% of the processes that
would fix 80% of the issues?”
As any business grows, the necessity to ‘processorise’
becomes ever greater. If you are eventually extract yourself
from being at the CENTRE of your business, then being assured
that consistent processes are being followed is key. It is the
ONLY way to successfully SCALE your business.
After all, McDonalds most certainly didn’t grow by allowing
franchisees to decide how to grill a burger; how to set their
signage; or how to train their staff. It is a formidable machine –
and so too should your business be.
Most businesses have grown like the proverbial topsy,
meaning that …
 There is no clear ‘brand’ or sense of ‘how we do things
round here’ – if you asked the team they’d all come up
with a different answer
 There is no process book: most of ‘how to do stuff’ is in
your head and only you (or a key person) knows what to
do in specific situations
Vanessa Lanham-Day ©2017 P a g e | 20
  Your team tends to ‘make it up as they go along’
 When people leave, it’s a nightmare!
 Training a new team member is another nightmare!
 You going on holiday is a nightmare
 There is little consistency – customers will receive a very
different experience depending on who they deal with
Sound familiar?
So where do you start?
It might help if you started by asking the question …
“Which are the 20% of the issues that
are causing 80% of the hassle?”
Get those agreed and documented and you’ll be well on
your way. In fact, you’ll probably have the bug for processes
by then!
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
Secret weapon!
The Pareto Principle and
your behaviour
Ask yourself…
“What is the 20% of my behaviour that
would deliver 80% of my results?”
I know I promised you FIVE Pareto Principles to help your
business growth but none of them – and I mean NONE of
them - can work without this SIXTH ‘secret weapon’ principle
being powerfully applied. The things in your business that
need changing and developing will ONLY get done if you
allocate time and activity to the task.
Meaning that, ultimately, it’s only ever about what you DO.
Which is why your BEHAVIOUR matters – a lot.
A key behaviour is to allocate time - ideally EVERY day – to
the job of growing your business. If you consider the 20% of
your day that will deliver 80% of the most meaningful activity –
that means just 90 minutes. An hour and a half.
Time spent working ON your business, rather than just IN it.
Vanessa Lanham-Day ©2017 P a g e | 22
And when you consider that concentrated, planned,
focused time is generally perceived as about TWICE as
powerful as just ‘time’ – your ‘hour and a half’ just converted
into THREE HOURS of impact! Wow, that could make a REAL
difference.
Your decision …
Ask yourself … “What’s the 20% of my behaviour that will make
80% of the impact?” Only you know what behaviours you are
prepared to change to get the results you want. Maybe it’s
switching off your email until 10am. Diverting customer issues
to a team member. Setting up systems that manage clients –
rather than it being YOU.
Because of course you do have a choice. You can CHOOSE
for things to carry on much as they are – with you behaving in
much the same way. Or you can choose to make a change.
It really is up to you what happens next. So, the very best of
luck with your journey.
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
About the author:
Vanessa Lanham-Day
Vanessa founded OnTrack Marketing, a
Surrey-based marketing consultancy in 1988.
She now works primarily as a business growth
mentor and Mastermind leader.
“I’m all about helping business owners to
become inspired to fulfil their business dreams by mastering
the art of business growth and marketing.
“Most business owners are simply too close to the problem
and often want some support being pointed in the right
direction; whether it's for the core components of a powerful
marketing plan, or the structure and organisation needed to
ensure systematic implementation.
“With over 30 years as a professional marketer and business
mentor, I have an outstanding record for helping business
owners achieve exactly that.
“I’m often told that my approach is inspiring – clients leave
me knowing what they need to do - and with the energy and
commitment to do it!
“Most business owners struggle with a lack of accountability. I
seem to have earned the name of The ButtKicker and I’m
happy to play my part!
“My passion is ‘Inspiring and empowering you to fulfil your
marketing and business growth potential’ and it is certainly
what I love doing most.”
Vanessa Lanham-Day ©2017 P a g e | 24
 What people say about Vanessa …
Your personal call with
"As part of Vanessa’s Four Man Business Builder, my business has grown in ways I

‘The ButtKicker’ for FREE!
Vanessa is passionate about helping you and your
business to succeed - and the best way to find out if
she can help you is with one of her FREE trademark
'ButtKicker Marketing Focus Calls' ...
"I guarantee I'll leave you with a fistful of
'lightbulb' moments that you can apply to your
business straight away."
To book your ButtKicker Marketing Focus Call…
could not have imagined. I thought I was joining to get a deeper insight into what
my message should be, but I learned very quickly that whilst that is important, it is
only the tip of the iceberg!
"Unleashing the power of marketing is the heartbeat of the programme. Vanessa is
clear that marketing impacts every area of a business and her commercial
experience has shown me how. In the most positive way, Vanessa has put me
outside of my comfort zone month after month – my personal development has
been upwards and steep. ALL of my numbers have gone up and I now feel that
the business has really strong roots and a great future.
"Key to the success of this programme is Vanessa’s insistence that accountability
for your actions (or non-actions!) is really important. Success comes from doing, not
from talking – occasionally though ‘doing’ happens after one of her ButtKicks! She
really has been very good at keeping me on track.
"She is a fabulous driving force to have had in my business. I have loved every

www.talk-to-vanessa.co.uk minute of the programme. Thank you Vanessa!"

Louise Boardman-Rule, Director at Ten2Two

Working with Vanessa was probably
the biggest turning point for me in
over 18 years of business. Whilst I may
have spent many of these years
pouring over figures and coming up
with various ideas with no real
direction, Vanessa managed, in one
day, to cut through the clutter that’s
bogged me down for so long and
give me 20 – 20 vision. I left knowing
what was important, what I wanted to
achieve, how I was going to achieve
it and in what timescale it was going
to happen; I was bloody knackered
afterwards but felt so positive that I
now had a direction.
Chris Stone, Director, Bushy Business
Working within the group has
provided an excellent way to be
accountable to yourself and other
members. Vanessa has guided and
supported me through the complex
marketing process; being there at
each milestone. She has advised with
business planning, strategic direction
and given me tools and business
models that I have been able to use
to great effect. Vanessa is very much
the ‘Butt Kicker’ she professes to be,
so it is no easy ride – but within that
she is able to identify where you are
at and give you the advice, courage
and self-belief for the next step!
Louise Turner, Barefoot Trainers

KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing Vanessa Lanham-Day ©2017 P a g e | 26
Vanessa Lanham-Day has been part
of my business growth at Luck's Yard
Clinic for many years. I now work with
her in her Mastermind circle and she is
not only focused in helping me bring
my business to the level I want it to be,
but also sensitive in doing so in a way
which I am comfortable with. She is
supportive but knows when to push
me that little bit extra out of my
comfort zone. Vanessa and her team
have been invaluable to my personal
and business development and for
that I am truly grateful.
Tone Tellefsen Hughes, Lucks Yard
Vanessa is very easy to work with but
won't let you get away without
putting the effort in where effort
needs to be put in! She knows her stuff
and has a direct, no-nonsense
approach which works well for me.
She has helped me systematize my
business which has made me much
more effective as a business owner.
Nikki Faulkner, Mulberry Bush
Consulting
If you are looking for someone to help
take your small business to a different
level then you have found that in
Vanessa. I have worked with Vanessa
on a one to one and group basis over
the last two years. She demonstrates
an incisive understanding of the issues
you face and encourages, cajoles
and at times nags you to implement
the stuff she encourages you to come
up with. Our business would not have
enjoyed the growth we have had
without Vanessa's help. We see her as
one of the team now!
Steve Clark, 44 Financial
KEEP IT SIMPLE! Five Powerful Pareto Principles to Fast Track Your Marketing
Vanessa is one of the most dynamic
people I know ... with the energy,
commitment and skills to drive any
project forward to a successful
conclusion. To top it all, she's great
fun! I would happily put my trust in
Vanessa for any project.
Keith Thomas, Sightline
Vanessa’s input has had a significant
impact on our business and we'll
continue to tap into Vanessa'
knowledge to help take us forward.
Well worth the investment.
Jean-Claude Vacassin, W10
Vivacious, interested and interesting,
Vanessa’s impressive list of contacts
and network brings extra value to any
project which needs additional
support as well as the creative
services that she provides. You have First Edition 2017
been warned. If you work with First published in Great Britain 2017
Vanessa it is almost inevitable that
you are going to have a thoroughly
enjoyable time in great company and
achieve outstanding results. Copyright Vanessa Lanham-Day 2017
Adam Workman, Wheelers Solicitors
Contact the author: vanessa@on-track-marketing.co.uk
Vanessa's help has been invaluable –
she has a refreshingly down to earth www.on-track-marketing.co.uk
approach to marketing by cutting out
all the industry jargon. On a one-to-
one basis she skilfully and patiently All rights reserved. No part of this publication may be reproduced, stored or
analysed with me the underlying introduced into a retrieval system, or transmitted, in any form, or by any means
problems my business was facing at (electronic, mechanical, photocopying, and recording of otherwise) without the
the time. Vanessa then helped me to prior written permission of the publisher.
decide on practical solutions and
gave me confidence to put them into This book is sold / distributed subject to the condition that it shall not, by way of
practice. The Super Success trade or otherwise, be lent, resold, hired out, or otherwise circulated without the
Accelerator was a key turning point publisher’s prior consent in any form of binding or cover other than that in which it
for me and my business. is published and without a similar condition including this condition being imposed
Patricia Ellis, MD Wizard Video on the subsequent purchaser.
Vanessa Lanham-Day ©2017 P a g e | 28