Use the 80/20 principle to 10x your software’s profitability

The 80/20 rule, also known as the principle of factor sparsity states that 80% of the events come from 20% of the reasons.

In his book The 80/20 Sales and marketing, Perry Marshal demonstrates how 80% of your results come from 20% of your efforts.

80% of your sales come from 20% of your customers and 80% of your income will come from 20% of your transactions.

In fact, 80% of the actions you take in the day to day operations of your business are only responsible for 20% of your results, so concentrating on the remaining 20% will produce results that are 80% better!

Did you know you can use the 80/20 principle to plan your product’s software development?

The Standish Group ranks the usage factor of features across the average enterprise software system.

Their findings show that on average only 7 percent of an enterprise application features are “always” used, 13 percent of the features are “often” used, and 16 percent are used “occasionally.”


That leaves 64 percent of the features in an average enterprise application as either “rarely” or “never” used.

80% of your customers will only use 20% of your product features, so understanding which are the most commonly used parts of your software, will help you concentrate your efforts on them.

Developing the most commonly used 20% of your software will allow you to maximize the effectiveness of your development budget and put you ahead of your competitors for 80% of potential customers.

Identifying the MCU (Most Commonly Used) parts of your system might require you to measure the usage patterns of your customers.
You might also want to pay close attention to user feedback as well as implement some sort of a feature request /voting software such as UserVoice or Groove.

Inverted Software can help you identify your system’s MCU by incorporating dedicated tools and processes.

Once you have identified your product’s MCU, spending your efforts planning and developing them will yield results that will make your product 80% more attractive to 80% of the customers that are looking for products like yours!

Imagine owning and dominating 80% of the market in your industry!

Want to get started with fine tuning your product?

Contact us today and let us know how we can help.

Inverted Software

Phone: 818.262.8552

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