90% of sales from one thing

I was having dinner with a friend of mine last week, chewing the fat about all manner of topics.

My friend’s name is John, he’s a lovely man, and – among other things – he’s a mortgage advisor.

And inevitably, we ended up talking about business, and about the various different marketing strategies we’re both deploying to get more customers and grow our businesses.

One of the things that became really obvious during the conversation was the truth of what’s known as “Pareto’s Law”, otherwise known as the 80:20 rule.

Pareto was an Italian economist, and his proposition was that – in life as well as in business – roughly 80% of effects come from 20% of causes.

If we contextualise this for your business, you’ll get something along these lines:

80% of your profit comes from 20% of your customers

80% of your sales come from 20% of your sales team

80% of your product sales come from 20% of your products.

And so on, and so forth.

Anyway, when it comes to marketing, John’s recognised Pareto’s principle at work in his business:

He’s done a lot of marketing over the years: leaflets, Adwords, Facebook, email, flyers, the list goes on and on, but 90% of his customers come from ONE thing – three testimonial videos on his homepage.

I was so staggered by these statistics that I just had to share them with you, and there’s a simple reason why – when you discover something in business that has such a disproportionately positive effect, it simply doesn’t make sense not to implement it personally.

Video testimonials WORK, and here’s why:

#1 People trust customer testimonials more than anything you can say about yourself.

#2 Video is hard to fake or stage, so they’re viewed as much more reliable than text-based testimonials.

#3 It’s much easier to be emotive in video, and as we know, we buy with emotion and then justify with logic.

Long story short, if you haven’t got video testimonials from customers who’ve had a great experience with you, that needs to change.

And the best place to put them?

The page with the most amount of traffic, which in almost all cases is your homepage.