The reason why ordinary bank customers are called long-tail customers is because the scale of assets owned by individuals and at their disposal is often small, but the total number of this group is huge, including small and micro enterprises, start-ups, and agriculture-related enterprises. Most people fall into this category.

The long tail, or long tail effect, was first published in 2004 by Chris Anderson, editor-in-chief of Wired, in his own magazine to describe companies such as Amazon, The business and economic models of websites like Netflix and Real.com/Rhapsody.

It refers to the phenomenon that those products or services with small sales volume but many types that have not been paid attention to before have accumulated total revenue exceeding that of mainstream products due to their huge total volume. In the Internet field, the long tail effect is particularly significant. The term long tail is also used in statistics, usually in relation to property distributions and vocabulary.

Extended information

The Pareto Principle states that for many events, approximately 80% of the effects come from 20% of the causes. Management consultant Joseph Juran developed this principle in Italy with the economist Pareto and noted the 80/20 connection at the University of Lausanne in 1896, showing Pareto in his first article "Political Economy" In Reto, about 80% of Italy's land is owned by 20% of its population.

This is a common principle in business management. For example, "80% of sales come from 20% of customers." Many business executives use the 80/20 rule as a tool to maximize business efficiency. Richard Koch wrote a book on the "80/20" principle that shows the practical application of the Pareto principle in business management and life.

Baidu Encyclopedia-Long Tail