What is Pareto analysis (80/20 rule) in analytics?

< 1 min read

Pareto analysis, or the 80/20 rule, identifies that a small percentage of causes drive most of the results.
In one project, we found that 20% of products generated nearly 80% of total revenue.
It helps prioritize high-impact customers, products, or regions.
We used sorted bar charts and cumulative percentage lines to visualize impact.
It supports focus on key drivers rather than spreading efforts evenly.
Low-impact segments were analyzed for improvement or cost control.
As a BA, I use it to guide strategic and operational priorities.
Overall, it highlights where attention delivers maximum business value.

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