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THE ULTIMATE CPG DICTIONARY
Pareto’s 60/20 Law
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:
In a snack brand, heavy buyers may account for 60% of sales, but the remaining 40% still comes from many one-time or light buyers.
Category:
Consumer/Market Metrics
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