The 80/20 Rule

Jeremy Feb 08, 2008 3 Comments

If you're lucky enough to make money with a business on the web, you'll have a lot less people to thank than you think. A good rule of thumb is that a small number of your customers will generate the large majority of your revenue. Consequently, the large majority of your customers won't ever really care about you that much.

Vilfredo Pareto

There's a good chance you're already familiar with this as the "80/20 Rule", an idea credited to an early 20th century French-Italian polymath named Vilfredo Pareto. An expert in sociology, economics and philosophy, Pareto made a famous observation in 1906 that 80% of the property in Italy was owned by only 20% of the people. Over the past century this idea has stuck and become influential in a number of different fields of study. In the software world Quality Assurance engineers use it to chart service issues by severity, noting which ones are taking up the most of their resources. Mixing economics with sports, UC Bakersfield professor David Berri analyzes box score data to describe basketball, pointing out that 80% of a team's wins can be attributed to 20% of its roster (i.e. three guys on a roster of 15). In both cases a wealth of data often points to the same general 80/20 rule.

This kind of thinking works especially well on the web where visitors every move gets captured in exhaustive server logs and transaction receipts for analysis. Amid all that data, patterns begin to emerge if you know how to look for them. With practice you begin to develop a nose for where all the productive activity is. This is a sociologist's and an economist's dream. As web designers and developers we should recognize this bonanza of data for what it is and adopt some of their thinking and their tools for making sense of it.

Old school usability guru Jakob Nielsen took up this idea when thinking about online communities in an article "Participation Inequality", reframing 80/20 as the 90:9:1 rule. He maps to these three segments and names them Lurkers (90%), Casual Participants (9%), and Fanatics (1%). Yahoo!'s Bradley Horowitz's wrote about the same idea in his influential article, "Creators, Synthesizers, and Consumers," and drew the different levels out as a pyramid. Horowitz points out that in the case of Wikipedia, 2.5% of its registered user base is Bradley Horowitz's pyramid as best as I can remember it responsible for over 50% of the site's content. That's an amazing figure when you consider both how valuable that content is to their service and that we're only talking about a percentage of registered users, not the millions of Nielsen's "lurkers" browsing the site every day.

It's this top of the pyramid that could end up driving most of your business. If your site is about community content, these are the folks who will produce your most valuable input. Have this in mind when imagining that enormous traffic spike in your site's near future. Not all that traffic will stick and drive business. Funneling the right people into that sliver at the top and then nurturing their experience may be the key to your site's success.

The Dashboard Experience

Mark Feb 06, 2008 Make a comment
Your refrigerator, the dashboard.

What do your car, pants pocket, and refrigerator have in common with your life on the Web?

They all have a well designed, easy to use way of storing your data and actions, and they're called dashboards.

And now you're probably scratching your head or fighting the urge to raise an eyebrow, but trust me on this one. The wallet in your pants pocket and your refrigerator door with the hodgepodge of stuff are dashboards, just like the one in our cars and countless Web applications. But how can I safely make such an argument? Well, if a dashboard is an interface through which you get to key information and actions, then my point isn't as far off as you might have thought. In a way, your life is full of dashboards.

Going Existential

Your car, your refrigerator door, and your wallet are the most common real world dashboards. Whenever I intend to travel, make a purchase, or provide my contact information, my wallet is there to facilitate each action. It neatly holds my state ID, credit cards, insurance info, business cards, and small personal items. It’s the hub for nearly every transaction I make. Whenever I need to, I can easily reach for it and dive into something with very little effort. It's always my jumping-off point for transactions, quickly providing an overview of nearly everything I'll need.

Likewise, my refrigerator door is another dashboard. It has a whiteboard of to-do items, a running shopping list, magnets holding up coupons and notes, and an occasional piece of art. It's my hub for things that need to be done in and out of the apartment. But how does this pass on to life on the Web?

Well, just like your car, wallet, and refrigerator, nearly every Web application has a dashboard of some sort. Those dashboards can hold your friends' activity, provide managerial actions, and serve as a warehouse of your media or activity. For large-scale services like Google or Flickr, a dashboard is often the only way to access and create new content, manage users and permissions, read notifications and alerts, and more. It's the life-line of your activity and content.

As Luke Wroblewski points out, it's a "Me-centric structure" that truly sells a Web application's dashboard:

Within such a structure there may be a need for a dashboard that provides a horizontal view through the relationship layers (mostly snapshots of and links to content) to encourage exploration and highlight features.

Creating the Experiences

Your wallet and iGoogle are great examples of how dashboards should perform. Even before you start to add stuff to your wallet or customize your iGoogle, it's a functional and ingenious piece of design. As a platform that your visitors keep coming back to, these dashboards are the first real test of their—keyword being “their”—experiences with your service.

Once someone customizes their wallet or iGoogle, each easily fronts up actions and resources you'll need the most, streamlining your processes in a way that's tailored just for you. Just like a wallet becomes you as you customize it with your ID and credit cards, iGoogle evolves from simply news, weather, and e-mail to your news, your weather, and your e-mail. They go from being simply a structured hierarchy to a full on, me-centered experiences.

As Web designers, we have to be able to craft the platforms for dashboards. It's important for people to easily perform activities on the websites through me-centric dashboards so that they keep coming back. As a well designed and easy to use interface, the dashboard is key to showing visitors how to access and use parts of the site. It's their primary experience with which they gauge the rest of your service.

The question is: how much of a me-centric experience does your dashboard create?

Creativity Under the Gun

Ryan Feb 05, 2008 Make a comment

Basketball Shotclock Legend has it that creativity is an exclusive domain of artists, musicians, and inventors born with a special gift which sets them apart from ordinary people. That's ridiculous! You were born with just as many creative neurons as Picasso; it's time to work out the kinks and let them see some daylight. And we're going to show you how to get those juices flowing again.

So what does creativity mean to us? Creativity is a colorful blend of ideas, brainstorms, wireframes, sketches, and passion, which all roll up into a finished work of art. The cornerstone of creativity though, is process; it's what drives things forward. It provides a structure and helps you stay true to a goal, no matter how easy or how complex it may be. One key ingredient to the creative process that often gets overlooked is time. You need to set limits to get creative solutions done.

"[We] have no choice but to stop that [creative] cycle. I mean, if you don't work under time constraints you could never get anything done because it's a messy process, it could go on forever." - David Kelley, Co-Founder of IDEO

Let's take basketball for example. Time plays a deciding factor here as well. In basketball, a player is given 8 seconds to get halfway across the court, and a total of 24 seconds to put the ball into the hoop. If he uses up that time to dribble around and look fancy, the clock will run out, and his team will lose possession of the ball. Ignoring time as part of the process means that player just spent a whole lot of time and never got anything done with it. Time limits keep us honest by forcing us to finish what we're doing for better or worse.

One of the techniques that we use to get our creative juices flowing is our Friday 15's. The key ingredient? You guessed it: time. Let's borrow some goals from one of our previous Friday 15's. We're going to leave the creativity part up to you though.

Paper & Scissors

Friday 15: Piece Yourself Together

  • Find the nearest stack of old magazines.
  • Grab some scotch tape, several blank sheets of paper, and a few pairs of scissors — one for each team member.
  • Now, set the timer at 15 minutes and let your team dive in and tear up each magazine to create an ad that best represents themselves.
  • Keep it short and simple, and most importantly, have fun doing it.
  • Oh, and don't run with scissors!!!

You are creative

Andres Jan 20, 2008 1 Comment

"I'm just not a creative person." Really?

You're not a creative person... So you wake up, mentally punch out for sixteen hours and then fall back asleep? You must be great at parties. I mean, I get why people say it because not everyone is encouraged on a daily basis to be a creative snowflake. But confidence issues aside, we all need to realize that everybody is creative.

Actually, creativity is tied to passion. It's the desire to exceed the humdrum, bare minimum requirements for whatever you put your mind to. As long as you have a passion for something then you'll think creatively. Creativity is looking for solutions to challenges, and we all know life is full of challenges.

So why is this important for us to realize? Because the world you see outside your window - that's right, look away from the monitor for a moment - contains more inspiration and creativity than anything you're going to see your computer screen.

Jim Krause wrote that you should be a human satellite that constantly scans your surroundings for ideas, concepts and different ways of approaching your problems. Take for example, the surgical team who looked to Ferrari's pit crew for ways to improve their operating room techniques, or consider the fact that the shoes some of you are wearing right now are around because of a waffle iron.

All said, it's easy to get wrapped up in the world of creative publications, bleeding-edge blogs and $800 conferences. Just remember not to limit yourself to these sources for your creativity. Don't misunderstand, the good people who put their hearts and souls into developing these engines of creativity deserve praise and pats on the back. But try this - take your eyes off the sidewalk on your way back from getting a coffee once in a while. You may be surprised by what you learn.

We all have the chance to be human satellites!

Zazzle Wins 'Best Business Model' Crunchie

Mark Jan 19, 2008 Make a comment

Zazzle, one of our oldest clients, just won a TechCrunch Crunchie for Best Business Model. Over 100,000 people voted and awards went out to the likes of Wordpress, Facebook, and my personal favorite, the iPhone.

Congrats to everyone who won, and especially all those who were nominated!

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