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Pareto’s 60/20 Law
Definition
A modification of the traditional Pareto (80/20) principle. In CPG, around 60% of sales come from the top 20% of customers — but the other 40% comes from many light buyers
How It's Calculated
Analyze sales contribution by heavy buyers (top 20%) vs. light buyers (bottom 80%).
Example
A beverage brand sees 60% of revenue from loyal weekly buyers, but the remaining 40% comes from occasional shoppers who only purchase once or twice a year.
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