According to the 80/20 rule, what percentage of sales typically comes from a small percentage of customers?

The 80/20 rule, also known as the Pareto Principle, suggests that a significant portion of outcomes often comes from a small percentage of causes. In the context of retail, this rule indicates that approximately 80% of a company's sales usually come from just 20% of its customers. This principle highlights the importance of identifying and nurturing relationships with these key customers, as they are responsible for the majority of revenue. Understanding this distribution allows retailers to optimize their marketing strategies and improve customer service by focusing on the customers who contribute most significantly to their business. This strategic insight can lead to better customer retention and increased sales overall.