Usage rate segmentation is rooted in the concept of the 80/20 rule,which suggests that
A)80% of the customers are season ticket holders while 20% attend only one game a year
B)20% of the customers attend more than one game a year while 80% only attend one game a year
C)20% of the customers generate 80% of the revenue and profit
D)80% of the customers generate 20% of the revenue and profit

Question

Quizplus · Accepted Answer

The 80/20 rule suggests that 20% of the customers generate 80% of the revenue and profit, which is the basis of usage rate segmentation. This segmentation approach involves grouping customers based on the frequency and intensity of their product usage, with the aim of tailoring marketing strategies to each group. By identifying the 20% of customers who generate the bulk of revenue and profit, companies can prioritize their marketing efforts to maximize returns on investment.

Usage Rate Segmentation Is Rooted in the Concept of the 80/20