pie-framework

PIE Framework In A Nutshell

The PIE framework is an idea prioritization tool used in A/B testing. The PIE framework was created by WiderFunnel founder Chris Goward to help businesses identify which idea they should test first. The framework is one of several prioritization frameworks, but it is most associated with A/B testing to monitor conversion rates on websites.

Understanding the PIE framework

The business must understand where to focus its time and effort because it cannot test every idea at the same time. In other words, the PIE framework helps key decision-makers determine which website features should be tested now and which can be tested at a later juncture. 

Without a proper prioritization framework in place, businesses become overwhelmed by the sheer number of choices and suffer from analysis paralysis. What’s more, they may end up focusing their efforts in the wrong areas which leads to significant opportunity costs.

The three components of the PIE framework

The PIE framework considers three factors that make up the PIE acronym: potential, importance, and ease.

When moving through the framework, the business can score each factor in a matrix according to how significant the impact of a proposed change may be. A scale of 1 to 5 or 1 to 10 is commonly used.

Let’s now take a look at each of three factors:

  1. P is for Potential – how much improvement can be made on a page as a result of a specific idea? Here, the worst-performing pages should be given a higher score since they have the most room for improvement. Consider customer data, web analytics data, and heuristic analysis of user scenarios.
  2. I is for Importance – how important is the page? Does it receive a high volume of traffic? Will the change impact a visitor’s ability to complete a transaction? Note that some of the worst-performing pages identified in the previous section may be a low priority because they receive comparatively little traffic, so score accordingly. Web analytics can help identify important pages such as landing pages with high bounce rates. It’s also helpful to consider the financial cost of bringing visitors to a page. Indeed, pages with high-cost traffic sources are more important because conversion improvements have the potential to deliver a better return on investment.
  3. E is for Ease – how complex is the task, project, or idea? In other words, how easily will it be completed and how long will it take? Barriers to implementation include technical, organizational, or even political issues. Tasks deemed as easier to implement should be given a higher score.

To determine which tasks should be prioritized, add the scores for each factor and divide by three to get the PIE value. For example, a task with a score of 7 for potential, 8 for importance, and 5 for ease receives a PIE value of 6.67.

Key takeaways:

  • The PIE framework is an idea prioritization tool used in A/B website or page testing.
  • The PIE framework helps businesses assign resources to initiatives with the most potential to positively impact their bottom line.
  • The PIE framework is an acronym of three factors: potential, importance, and ease. Decision-makers must assign weighted scores to each factor and then sum each score to determine task priority.

Connected Business Concepts And Frameworks

North Star Metric

north-star-metric
A north star metric (NSM) is any metric a company focuses on to achieve growth. A north star metric is usually a key component of an effective growth hacking strategy, as it simplifies the whole strategy, making it simpler to execute at high speed. Usually, when picking up a North Start Metric, it’s critical to avoid vanity metrics (those that do not really impact the business) and instead find a metric that really matters for the business growth.

ICE Scoring

ice-scoring-model
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.

Virtuous Cycle

virtuous-cycle
The virtuous cycle is a positive loop or a set of positive loops that trigger a non-linear growth. Indeed, in the context of digital platforms, virtuous cycles – also defined as flywheel models – help companies capture more market shares by accelerating growth. The classic example is Amazon’s lower prices driving more consumers, driving more sellers, thus improving variety and convenience, thus accelerating growth.

Freemium Business Model

freemium-business-model
The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a business model. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.

Growth Matrix

growth-strategies
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).

Ansoff Matrix

ansoff-matrix
You can use the Ansoff Matrix as a strategic framework to understand what growth strategy is more suited based on the market context. Developed by mathematician and business manager Igor Ansoff, it assumes a growth strategy can be derived from whether the market is new or existing, and whether the product is new or existing.

Read Also: Kano Model, New Product Development.

Read Next: Business AnalysisCompetitor Analysis, Continuous InnovationAgile MethodologyLean StartupBusiness Model InnovationProject Management.

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