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Business Fountain Pen and Wall Street Journal


The Efficiency of the 80/20 Rule Case Study:

Parameters: XYZ Corp. (name protected) is paying an average of $1.00 per click-thru from Search Engine Marketing with an advertising budet of $10,000 per month and getting 10,000 web visitors.

The goal was to spend a modest amount on web improvements with a requirement that the improvements be highly effective and productive to the bottom line.





Before OptimizaitonEffective Budget UseIneffective Budget Use
Budget Use20%80%
Click-Thrus20008000
Conversion Rate Of Effective Budget Use4.0%0.6%
Number Sales8048
Cost Per Sale$25.00$166.67
After OptimizationEffective Budget UseIneffective Budget Use
Budget Use80%20%
Click-Thrus80002000
Conversion Rate Of Effective Budget Use4.0%0.6%
Number Conversions32012
Cost Per Conversion$25.00$166.67

Recap of Budget UseBefore OptimizationAfter Optimization
Total Budget Spent$10,000$10,000
Click-Thrus10,00010,000
Number Conversions128332
Overall Conversion Rate1.28%3.32%
Cost Per Conversion$78.13$30.12
Ticket Price = approx $100, Total Sales Income$12,800$33,200
$ Amount Increase in Sales $20,400
Percent Increase In Sales 260%


Conclusion: What Was Learned From the Results

When the website efforts were optimized, the results were astounding. The 80/20 rule was turned upside down. The number of improvements that fall into the Vital Few category were increased. Realize that improvements that fall into the vital few are also proven to be the low hanging fruit of the web. Those efforts require less money, less knowledge / skills and shorter timeframes.

The effort resulted in maximizing high impact improvements, those that produced conversion rates in the 4.0% range, while minimizing the improvements that created only small incremental impact on conversion rates, averaging only 0.6%.

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    Last Update: 28 Aug 2008
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