Monday, October 27, 2003

The Pareto Principle: Applying the 80/20 Rule to Your Business
1) Use best-seller lists.


Find the "vital few" and make them easy for your visitors to find

2. Find out what to optimize on your Web site.

Often, when we review a client's WebTrends report, we spend a lot of time analyzing where and how traffic flows through the site. Guess what? About 80 percent of the traffic hits only 20 percent of the pages. We've found this to be true for both business-to-business (B2B) and business-to-consumer (B2C) sites (although it's not always true for content sites). Where do we focus our energy? Ideally, on those 20 percent of pages that are critical to the sales and buying processes and are required to maximize conversions. If users can't find those critical pages, we optimize the pages required to lead them there in the conversion process.
Take a look at Max-Effect.com, first the old site, then the redesigned one. When we analyzed how people bought yellow pages ad design from Max-Effect, we came to the conclusion they flowed through three pages: the home page, the samples page, then the contact page. So we spent time rewriting the copy on those pages and changing the samples page from a bunch of thumbnails to a couple of before-and-after ads with some copy. Bottom line: Max-Effect is generating four times more leads and closing more business with a third less traffic.

3. Fix or discontinue problematic products and services.

Stop wasting precious resources on products and services that drain energy, time, and money. Whatever the problem costs you today, when you redirect your efforts the return on investment will be much greater. Without negative baggage, you'll see real improvement in efficiency, morale, and productivity.

Why only three items, and not a top-10 list? You guessed it, the Pareto Principle. Again.


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