Data & Strategy

Data driven marketing.


Many companies “choke” on the amount of data available. It’s a common problem. They know the data is important and powerful, but can’t get their arms around it. They need help in organizing it, prioritizing it, and clearly understanding “what it means” in terms of using it to drive marketing strategies. When we sit down and talk with retailers 100% understand the importance and power of taking the data at hand and turning it into sales opportunities. They “get it”, however all share the same problem, they just can’t “get to it”. Pareto provides the means to get to it, while the retailer remains focused on what they do best, running the company and serving the customer.


Measurement is a key focus of Pareto Marketing.

The data provides an exact accounting of what each customer is worth. Your marketing investments can be quantified by measuring advertising cost with gross profit generated from each segment contacted. It is just a matter of doing the math, it’s simple but not easy.
-Monetize the value of what each customer is worth and then allocate advertising to different customer groups accordingly.
-Understand both the immediate purchase value a customer has, as well as the long term purchase value of a customer. LTV
-Measure ROI for every direct marketing contact.

  • Monetizing and Allocating

    Monetize the value of what each customer is worth and then allocate advertising to different customer groups accordingly.

  • Measuring ROI

    Measure ROI for every direct marketing contact.

  • Understanding the Purchase Value

    Understand both the immediate purchase value a customer has, as well as the long term purchase (LTV) value of a customer.

  • Using Industry Experience

    Combine facts and data with industry insights gained from 35 years of industry experience.


20% of products represents 80% of sales
20% of customers represent 80% of sales
20% of decisions represent 80% of results


The customer you need to target is always moving in and out of the marketing BULLSEYE.

New customers enter the database, existing customers purchase more and older customer’s lapse. Some only buy specific products while others only buy at certain times. The optimal target to reach changes based on the specific goals for each contact. Since we quantify and measure every marketing contact the customer receives, the history of ROI results for each segment allows us to continually adjust which segments receive future contacts based on past performance. The highest performing customer segments are emphasized while segments which are less profitable are reduced or eliminated from future contacts.


We develop specific proprietary formulas which monetize the spending potential for each and every one of your customers. Individual customers are grouped into segments which share common transaction characteristics.  The segments are then ranked and prioritized. The end result is an easy to understand “inventory” of customers based upon the sales and profits they produce for you.  Think of your customer inventory like you would your merchandise inventory, i.e. the number of merchandise classifications (customer segments), the number of sku’s within each classification (number of customers) and the importance of each (A,B,C,D ranking) based on sales produced.


Our marketing strategies are heavily influenced by what your customer data is telling us. Yet at the same time we have never lost sight of the fact there is a living, breathing person attached to the data. Understanding the customer’s attitudes and emotions as well as their transactional history creates a more holistic view of their connection to your brand.  In designing our strategies, we place a riveted focus on the end customer however we also place a high level of importance on gaining feedback from front line associates and executive leadership.  The insights into the “real world” nature of the customer relationship is key in developing strategies which are both practical and profitable.


We use customer transaction data, sales history, profit history, merchandise trends, market share and promotional results to understand past results.  We put a “face” to the customer data, understanding not only transactional characteristics but also the customer’s motivations for purchasing. We closely monitor key consumer lifestyle and demographic trends in the industry which often point us to emerging trends to capitalize on. We then intersect these trends with creative, compelling and measurable marketing strategies. We are big on planning ahead and keeping your business in front of the sales curve.  Not the typical “ready, fire, aim” approach common in retailing.  Instead, we anticipate future needs, spot emerging consumer trends, new sales opportunities or potential problems before they occur.


Marketing comes down to 2 things, the retention and acquisition of customers.  A successful marketing strategy strikes a balance of the two, not either one or the other.  First, protect where the majority of your existing profits are coming from.  Then, fill the pipeline of new customers with acquisition oriented strategies.  One difference with Pareto Marketing is that our acquisition strategies rely heavily on the knowledge of existing customer purchase patterns and existing customer data.  This allows us to more effectively profile and target customers like them.