The 80/20 rule suggests that 80 percent of sales come from 20% of the customers and this is most relevant to behavioral segmentation. True False

Answer

The statement is True. The 80/20 rule, also known as Pareto Principle, indicates that a small percentage of causes (in this case, customers) leads to the majority of the effects (sales). This principle is particularly relevant in behavioral segmentation, as it highlights the importance of identifying and understanding the most valuable customers. By focusing on this 20% of customers, businesses can tailor their marketing strategies and improve customer retention, ultimately maximizing their sales and profitability. Therefore, recognizing and leveraging behavioral segmentation based on the 80/20 rule can significantly enhance business performance.