Quality is not infinitely scalable

Scalable was a word introduced in the Information Technology world but it raises some interesting questions in applying it in other contexts.

In IT it is a popular buzzword that refers to how well a hardware or software system can adapt to increased demands. For example, a scalable network system would be one that can start with just a few nodes but can easily expand to thousands of nodes. Scalability can be a very important feature because it means that you can invest in a system with confidence you won’t outgrow it.

Now we see it applied more generally to a company that many customers would rate very highly for customer service. Toyota Failure Proves Quality Isn’t Scalable.

A small operation can bootstrap itself into a medium or even a reasonably large company, via either organic growth or acquisition, and still maintain the quality which was the basis of its initial success.

At some point, though, whether you’re talking an automaker or a technology firm, size breeds insularity, which in turn fosters risk aversion. I haven’t even mentioned the corner-cutting mentality which occurs when making numbers becomes a (the only?) priority.

The author, Alexander Wolfe, points out that in the more open world created by the Internet, the quality stakes are very much higher.

Toyota might not have so fortunate a fate, and thus a swifter fall, because we now live in Internet time, where seismic shifts occur in timeframes too tiny for rational thought to stop that Twitter/Facebook/Cable TV train from running the business off the metaphorical track.

I believe the author identifies exactly why this problem occurs.

It’s true that the scalability doesn’t seem to be a limiting factor for manufacturing, per se. It’s not the manufacturing which is at fault in the Toyota crisis. It’s a management failure brought on by an inherent inability of human beings to scale up, beyond a certain point, the social interactions which grease the wheels of a smoothly running society. (And, in a very real sense, a company is a society writ smaller.)

The real reasons for the Toyota problems have yet to be pinned down, however a clear message is that Toyota was not willing to accept that customer satisfaction is determined by the customer. Undoubtedly the final bill for Toyota will be very much greater than if they had accepted that if a single customer is dissatisfied, you have to make it right. Of course there is a very small proportion of the population that are never satisfied. However unless you do as much for them as most people would accept is right and fair, then you may well be storing up problems for yourself.

Insularity is not an acceptable or justifiable company trait. There must be full two-way communication that both parties find acceptable. Setting that up and providing adequate resources for that is not somehting that is easily scaleable. However the hoped-for economies by providing less than satisfying customer service are completely outweighed by the market penalties when customers feel ignored.

On a personal note, I have been a most satisfied customer of Toyota for many years and will gladly pass on the word to friends and acquaintances. However my voice and the voices of other satisfied customers are lost in the huge noise created by those who it would appear have reasons to claim that Toyota just did not listen.

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Ford Focus

Although you might assume we are about to discuss that new Ford Focus automobile, that is the resultant of what we really want to talk about.

The word focus is what Peter Drucker felt so strongly about that he emphasized it three times: focus, focus, focus. Although it is clearly essential advice for small and mid-sized companies, it is equally applicable in mega corporations too.

According to an article in the Wall Street Journal, that is what Ford’s Renaissance Man is now pushing.

Alan Mulally, an engineer from Boeing, arrived three-and-a-half years ago when Ford seemed on death’s door. It suffered a $12.6 billion loss in 2006, when industry-wide car sales were strong. But in 2009, Ford became the only U.S. car company to avoid bankruptcy, and posted a $2.7 billion profit. After plunging below $2 a share a year ago the company’s stock is now bumping $12.

“Improve Focus, Simplify Operations,” is for Mr. Mulally a sacred mantra. Soon after his arrival Ford began shedding brands – Jaguar, Land Rover and Aston Martin among them – that the company couldn’t afford to support. Volvo will be next to go. Meanwhile, the core Ford brand got an investment infusion to replace aging cars and revive a model lineup that had been heavily tilted toward gas-guzzling trucks.

In the process, Ford cut its number of global platforms, or chassis, to eight from more than 20, and the number of nameplates to 25 from 97. Each platform and model involves hundreds of millions of dollars of engineering costs, which translated to billions of losses when Ford couldn’t sell enough of each model.

Product-development chief Derrick Kuzak is methodically implementing the “One Ford” strategy of developing cars in a single region (say Europe, or North America) and selling them globally, instead of developing slightly different cars in each region at enormous extra cost. The first of these, the subcompact Fiesta, was engineered in Europe and will arrive in the United States this summer. In 2011, we will see a new version of a slightly larger car, the compact Focus, also engineered in Europe and designed as a global car from the start.

It’s all another triumph for that KISS principle. As Albert Einstein said, “Everything should be made as simple as possible, but not simpler.”

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Marketing First

Most posts on this blog derive from incidents and events that come up on my radar screen. I was delighted to see that one of my online friends, Rand Fishkin, was Bringing SEO to Small Business in Scotland.

I spent a day with small business owners in Glasgow, Scotland teaching the basics of online marketing and SEO. It was a remarkable experience to be faced with such a different crowd than what I’m used to. As a comparison, the week prior, I’d been in Mountain View presenting to the Silicon Valley Search Engine Roundtable, comprised of heads of SEO and marketing directors from Fortune 500 companies – all very savvy operators.

This was all in support of a program, Online Xcellence, sponsored by the Scottish government and organized by Brian Mathers, a real enthusiast in the search marketing world.

Two things came to mind as I read this post. The first was that this is another example of the generosity that Rand Fishkin so often displays. This not surprisingly permeates the culture in the company he founded, SEOmoz. It is part of what they call the TAGFEE Tenets. The acronym stands for:

  • Transparent and Authentic
  • Generous
  • Fun
  • Empathetic
  • Exceptional

Recently SEOmoz has taken a new direction and a new focus: The End of Consulting: A New Partnership & Our Focus on Software

Today I have two very big announcements. First, SEOmoz is exiting the consulting business to focus exclusively on our software model. And, second, we have an expanded partnership with Distilled (new US site: Distilled LLC), who’ll be taking over many of our consulting clients and opening offices here in Seattle. I’m going to … add detail on why we’re so bullish about the SEO software market.

I will have more to say on this change in a future post. What I wished to comment on in this post was the indication that Scottish entrepreneurs think online search engine marketing is central to future success.

Indeed it is. However there is a topic that is even more essential and must be discussed prior to this. It is the whole question of strategy. It can be called a marketing strategy since unless a company works well in its market place, it will not survive. I find that many companies slide by this question and do not answer the tough questions that deciding on strategy should pose. As Michael Porter, the strategy guru, said, strategy is about what you must say no to. It’s all about focus, focus, focus.

All this is by way of introduction to the E-Book, Marketing Right Now. This is now available as a free download. (This is a 1 Mb PDF file so please be patient.) Although it is intended for entrepreneurs and SOHOs (small office, home office), there are many big companies that could benefit from the rules set out in this slim book.

Some readers will find this book challenging. It has some very simple rules which most would accept as important and yet they do not apply them. Growing a business should take you out of your comfort zone. Unless you do that, you are not likely to succeed. This book’s chapter headings can give you a checklist of the key steps you must take to have a chance of being successful. Why not download it now and see what you should be doing differently.

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Stop Sending Junk E-Mail

Stop sending junk e-mail is good advice for anyone, but you may inadvertently be sending junk e-mail when you don’t intend to.  If you find that surprising, read on because you’re in for some major surprises.

None of us likes junk e-mail, which is e-mail that we have not requested.  If you wish you can add a spam filter to your e-mail service and weed out what you do not wish to receive.  For example I use K-9, which learns as you teach it what you regard as spam and what you believe is acceptable.  I find its performance excellent and it does a fine job in filtering out over 40% of my incoming e-mail, which is spam.

What you may not realize is that your Internet Service Provider (ISP) has already filtered out some other spam e-mail that you never saw.  Indeed any e-mail message passes across a number of ISPs in travelling from the sender to the receiver.  That means that other ISPs on the route may also have cut out some spam e-mail by their definition of spam.  They do this to help their clients but also to act as a deterrent to others who may wish to tie up their bandwidth with automatically generated floods of spam messages. 

What exactly is their definition of spam?  In fact the answer will always be complex and it is most unlikely that you can get a clear answer.  What follows is based on some extensive work done over 6 months ago.  In the interim, despite further analyses, the situation is no clearer.

Your IP Reputation

The first and probably most important factor in determining what constitutes spam is the Internet Protocol (IP) of the originator of the e-mail.  There are a number of services that evaluate the reputation of the originating IP.  One such is Senderbase.org. If you evaluate my own IP, 70.70.29.11, you will see it has a Poor reputation. 

You can find out your own IP by using a service such as WhatIsMyIPAddress.com. The reputation of your own IP might be rated as either Good, Neutral or Poor.  Even with a Good reputation, there is no guarantee that any given ISP will not reject your e-mail message as spam or junk e-mail but the odds are low that this would happen.

In the worst case, if you have indulged in deliberate e-mail spamming then it is possible that the IP address of your mail server is currently listed on the SpamCop blocklist.  This is a sure-fire guarantee that your e-mail messages will likely not get through.  In this case, you will need to read the SpamCop FAQ  for more information on getting de-listed from this SpamCop blocklist.

There are two other tests you may wish to do on your IP to determine how reliable it may be as an originator of an e-mail message.  The first is to do what is called a Ping test which determines how well your IP communicates with other IPs.  You may find that even with a neutral reputation IP, no pings are reported, which is not a good sign.

The problem is compounded when the your e-mail message must pass across several ISPs.  To get an indication of what is involved you can do what is called a TraceRT test.  This will give you an indication of the places your e-mail message must pass through to get to its final destination.  Remember that each ISP may possibly delete your message if it seems that it could be a potential junk e-mail.

Your own e-mail service will have a certain policy on what e-mail messages it defines as junk and what e-mail messages it allows to pass through to its e-mail clients.  In some cases you may be able to modify the default policy and allow either more or less junk e-mail messages to get through to your Inbox.  If you are aware of the IP of a source of messages that you wish to see then you may be able to whitelist the source with your e-mail service provider.  However in practice this does not always work.

Is Your E-mail Message Spam?

The reason why the reputation of the IP is not an infallible indicator of junk e-mails is that the message itself is also analyzed.  A simple text message will usually get through from a good reputation sender.  Anything more than that may be questionable.  Here are some of the reasons why e-mail messages are deemed to be spam:

  • The same e-mail message is sent to a large group of people, particularly using the blind copy approach to hide their e-mail addresses
  • He e-mail message is in HTML
  • He e-mail message contains a large number of links to other websites
  • The e-mail message contains images
  • The e-mail message has attachments such as Word document files.

Whether any given message is deemed to be a junk e-mail message will depend on a combination of factors above and the reputation of the e-mail originator.  Different e-mail services will be more or less stringent in approving these rules.  For example the Google Gmail service is fairly strict in this regard.

Making sure your e-mail message gets through

There are a number of factors you may wish to consider to ensure your e-mail message gets through to as many as possible of your intended audience:

  • Ensure your originating e-mail address has a good reputation.
  • Limit the number of attachments to your e-mail messages and ideally avoid them altogether.
  • Avoid too many images in your e-mail messages
  • Avoid creating large numbers of URL links in your e-mail messages
  • If your audience accepts this, use text messages rather than HTML messages

Monitor How Many E-Mail Messages Get Through

Given that no e-mail message is guaranteed to get through, it is useful to monitor whether all your messages get through or whether a certain proportion of your audience does not receive them.  If this proportion is unexpectedly high, then you may need to change the content of your messages or the e-mail address you use to send them.

The more of these you can cover, the greater fraction of the audience that will see your message..  However there are never any guarantees and the ideal is that your recipients should also whitelist your originating e-mail address.  Even that is not surefire so in critical situations, it is better to seek some confirmation that your readers have indeed received your e-mail message.

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Leads Generation With Google Squared

I missed the original memo from Google, but I find Google Squared from Google Labs somewhat mind-blowing.

Their announcement in June gave the following details:

Google Squared is an experimental search tool that collects facts from the web and presents them in an organized collection, similar to a spreadsheet. If you search for [roller coasters], Google Squared builds a square with rows for each of several specific roller coasters and columns for corresponding facts, such as image, height and maximum speed.

While gathering facts from across the Internet is relatively easy (albeit tedious) for humans to do, it’s far more difficult for computers to do automatically. Google Squared is a first step towards solving that challenge. It essentially searches the web to find the types of facts you might be interested in, extracts them and presents them in a meaningful way.

If you click on any fact, you’ll see the sources Google Squared gathered it from as well as a list of other possible values that you can investigate. So even if your square isn’t perfect at the beginning, it’s easy to work with Google Squared to get a better answer in no time. Once you’ve got a square you’re happy with, you can save it and come back to it later.

If I had seen that, I might not have grasped the full potential. However the latest news indicates that Google Squared has quality improvements and allows sorting and exporting.

At launch, your first square could include at most 30 facts or cells. With today’s update, squares display four times as much data — up to 120 facts. For example, instead of seeing only five companies and six categories, now you’ll see a table with 20 companies and up to six attributes.

The quality of the information is also better, because we’re ranking based on both relevance to your query and whether we can find high quality facts. Now we’re actively filtering out items (rows) and attributes (columns) from the initial square if we haven’t found enough accurate data. Perhaps more interesting, we built Squared to learn from edits and corrections, so as people have been improving their squares, Google Squared has gotten better for everyone.

We’ve also added the ability to sort columns, so you can rank, group and compare items. Squared will even convert units in the background to make sure the data is sorted properly. We’ve also added the ability to export data from Squared to a Google Spreadsheet or a CSV file, which should make it easier to do interesting things with the data.

Google Squared is extremely useful if you want to find a list of potential company leads. Suppose you are a wine distributor and you want to develop a list of restaurants in Langley, BC. Just do a search with Google Squared for Restaurants in Langley, BC. The result is a spreadsheet of key factors for the entries including telephone numbers.

Langley BC Restaurants

You can download this as a CSV file and open it in Excel or you can transfer it to a Google spreadsheet within Google Documents.

Try it! I think you’ll be impressed.

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Marketing Right Now e-book

Marketing Right Now was originally an 8-part blog series that appeared on the Cre8asite Flow blog in the fall of 2008.

It now has been updated and brought together in one place in an e-book (PDF file).  Here are more details on the Marketing Right Now e-book.  The aim is to help entrepreneurs and SOHO (small office, home office) workers start their business in the right way and then grow it successfully.  It covers all aspects of this in a concise 55 pages.

It is intended as a work book, which is the reason for presenting this as an e-book.  It discusses throughout what are the success keys of business and in an Annex presents these keys to success in a single page work sheet.  It does suggest ways of doing extra reading, but the action-oriented entrepreneur will find the essential first steps are covered so that the action plan can start quickly.

Three Key Factors

Why is this book different from all the others that appear so frequently?  The major difference is that this is geared for rapid action rather than slow and leisurely planning.

There are also three important principles that influence how actions should be taken:

  • Internet mindset
    The Internet creates greater openness and changes the balance of power between buyers and sellers
  • Customer-centric
    Unless you see things the way the customer does, you may be surprised when they are cool about what you thought might be good for them.
  • Time Is Job One 
    Time is valued by customers much more than companies acknowledge.  Offering attractive time-related services to your customers will give a competitive advantage.

Why Pay For An E-book

One reaction to an e-book may be to question why it is not free.  There are so many things written on the Internet that are free.  Why would someone not explore those? 

Well of course they can but their own time must be factored into the equation.  It is the principle that Chris Anderson discusses in his book, Free: The Future of a Radical Price.  In this case you can see a good part of the information in the blog posts mentioned earlier and very little has changed since then.  However if your time is valuable, then you may feel it is an equitable arrangement to pay the author a modest contribution so that you have the content in a more usable format that will save your time.

The advantage of an e-book is that you know exactly what you are paying for.  Many sources of marketing information are put behind walls and you must pay a monthly entry fee to have access. One cannot be sure exactly what is the ROI for such more hefty investments, but usually there are a few glowing customer references to encourage you to enter the door. 

If you want to get a better appreciation of such ‘closed gardens’, Chris Garrett wrote a description of how he Built His Authority Blogger Member Site.  As he says there  is a good deal of interest in Teaching Sells and membership sites in general, so he wanted to set out how you can easily create your own membership site using WordPress.

buy marketing right now

Membership sites are certainly one possibility if you think you will have the time and dedication (and money) to follow all that they have to offer and then take the necessary actions.  If you are not sure about what is in that ‘brown paper bag’, then a more appropriate way to go may be a modestly priced e-book that covers all you need.

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Rapid Response Service For Online Success

Karen Mazurkewich suggests that Rapid Response is the key to online success.  Unfortunately a factor that weighs against online ecommerce is that Canadians are more wary about online security.

Online retail sales showed promising growth in Canada. Sales reached $12.6- billion in 2006 — a 61% rise over three years — according to a 2007 Statistics Canada report. Online sales increased only by 3% in 2008, says the Raleigh, N.C.-based media marketing company Sage Works, but are up 9% for the first eight months of 2009.

Canadians have not embraced the online shopping model with the same verve as their U.S. counterparts. Fear of credit card fraud is an issue.  Darrell MacMullin, general manager PayPal Canada, says “Canadians have one of the highest sensitivities globally when it comes to security.”

Nevertheless some online stores have achieved remarkable success including the following:

Raman Kashyap, owner of cybershopping.ca, suggests that for success, companies have to be very niche-oriented and have strong social networking programs.  If they can also still any credit security concerns and provide rapid response service, they should have it made.

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Stop Your Email Newsletter Being Junk – A Case Study

Introduction

AWeber provides a fine email newsletter marketing service, so you might question whether what Tom Kulzer (AWeber CEO) writes in an article on Email Deliverability Tips may represent a slightly biased view of the situation.

Ensuring requested opt-in email is delivered to subscriber inboxes is an increasingly difficult battle in the age of spam filtering. Open and click thru response rates can be dramatically affected by as much as 20-30% due to incorrect spam filter classification.

Having found that my own email newsletter delivery system has encountered even worse problems than that, I can state that Tom Kulzer is not in any way exaggerating.  This article sets out what I found and what you need to do. It all concerns an email version of the SMM Newsletter, which was sent out monthly. 

This has been delivered to just under 1,000 subscribers for many months.  Originally it was a text newsletter but for some months has been an HTML newsletter.  It is issued using the Pimex Mail Express newsletter software.  It was sent out in blocks of 20 with a 5 second gap between blocks.  Suddenly this month something triggered the Shaw Spam filtering system and although it appeared to have been sent, it never got to its recipients.  Explanations and solutions follow.

Although it describes a multi-delivery email message, you should note that some of these problems can affect single email messages that are junked on the way to their recipient, even if they wish to receive the communication.

What Is Junk Mail

You should be clear that there are two definitions of Junk Mail.  You may believe it is mail that you do not wish to receive.  Your email delivery system has a different definition and different email delivery systems have slightly different definitions.  Each has a computer algorithm that applies a host of factors to determine whether any given email message should be deemed Junk or not.  Part of it is determined by who is sending the email message and part by its content.  In some spam filtering systems, particular senders can be whitelisted.  In other cases, this is not possible, for example Gmail.

Your IP Reputation

The key parameter in the system used by many ISPs, the Cisco IronPort SenderBase Security Network, is the Reputation of the individual IP.  This is determined by the Senderbase Reputation evaluator.

The Reputation can be shown as Good, Neutral and Poor.  Only the first Good reputation gives an assurance that email will be delivered.  For both the other categories, mail may be caught in a Junk trap.  The Reputation for the SMM IP (70.70.29.11) at the time of writing is Poor.  By ensuring no continuing transgressions, a weak reputation may gradually be restored.  There are other databases that may be consulted.  SpamCop is another but that has no indication about the SMM IP.

What weakens the IP Reputation

The SMM IP (70.70.29.11) is used for only minimal email apart from the batch of emails once per month.  The ISP tech support felt that this highly bunched up activity might have triggered the Poor Reputation value.  This could have the appearance of virus or trojan related email activity. 500 emails per hour may well be a possible acceptable limit although it is probably prudent to have no more than say 200 going out per hour.  This is undoubtedly affected by whether each is a simple text message for a few hundred bytes or multimedia or HTML messages that could be 25 kb or much, much more.

What Aspects Make Junk Mail

In testing different variants of the SMM Newsletter to try to avoid the Junk trap, some interesting facts emerged.  It should be noted that each ISP or service receiving an email message may have different degrees of stringency.  Indeed with the Shaw email service you can select the level of spam you are willing to tolerate.  It turned out that Gmail treated as Junk what was acceptable to the medium level of stringency for Shaw.

The fact that an email is HTML is perhaps the biggest factor affecting how a message will be assessed in Junk terms.  Another is the quality of the URLs (hyperlinks) that may appear within the message.  Initially a URL shortening service had been used for the link to the online version of the SMM newsletter.  The domain for the URL shortener turned out to be on a URL black list (https://admin.uribl.com/) and this was sufficient to cause the email to be Junk for Gmail (although not for Shaw).  Another black list service is to be found at http://www.surbl.org/ and you can check particular  URLs you are not sure about  at http://george.surbl.org/lookup.html

One way of avoiding that problem is to use your own URL ‘shortening’ service.  The shorter URL for the SMM Newsletter is http://www.otherbb.com/n.htm  The page n.htm does not exist.  Instead a 301 redirect is arranged in the .htaccess file on the domain to transfer automatically from n.htm to the actual online newsletter.

The Junk Mail solution for the SMM Newsletter

Given that the IP being used for transmitting the SMM Newsletter is still rated Poor by some services, the decision was made to use a text version of the Newsletter with a minimal number of URLs included and using the 301 redirect approach for the link to the actual online Newsletter.  Even so there were 1% of bounces due to possible spam content of the Newsletter, although there was no questionable content in the Newsletter.

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A Surer Solution To Avoid Junk Email concerns

Another way of avoidng these Junk concerns and many other concerns of publishing a successful email newsletter is to use one of the commercial services.  One which is highly rated by its users is that provided by AWeber (for which I am an affiliate).  If you would like to check out what is involved, why not sign in for that Free Test Drive in the form on the right.  You won’t regret it. The service provides all you could possibly need.

Whether you’re looking to get your first email campaign off the ground, or you’re now ready to dig into advanced tools like detailed email web analytics, activity based segmentation, geo-targeting and broadcast split-testing, you will find that AWeber has all you need to make email marketing work for you.

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Designing Websites That Perform

A website is not something that should merely be seen like a sculpture without any objective to influence potential prospects to take appropriate actions. Instead it should be a website that performs.

To do that it must have strengths in a number of areas. The following lists some of the more important:

  • Immediate visual impact
  • Visibility in the search engines for appropriate key words
  • Good usability so that visitors easily navigate the website to find what they need
  • Persuadability so that visitors take appropriate actions moving them towards purchasing
  • Credibility so that visitors feel a sense of trust in the company.

These features must be considered in designing the website: they cannot be added later.

To do this requires a particular kind of web design company that has all the necessary skills. An example of such a company is Primeview, which provides full services for arizona web design. That includes a strong emphasis on arizona seo, since this is critical in ensuring high website traffic.

Although search engines work particularly with the text content of websites, that does not imply a drabness for the websites created as you can see from Primeview’s cool before and after gallery. If you are in Arizona, this would certainly be a company worth reviewing if you are looking for full service web design that will create a website that will help you achieve your business goals.

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Making Complex Purchases

As Dave Brock points out, People Don’t Like To Be Sold—But They Do Like To Buy!

How do we facilitate the customer’s buying process? It’s a few simple things, but that can have great meaning to the customer—again much is focused on educating and informing. Things like: What are the questions they should be asking—of you and of your competitors? What should their expectations of a solution be? Are they realistic, unrealistic? What are the pitfalls involved in selecting a solution? What are the things they should be considering, but not thinking about?

Although many company owners may not realize it, one of the most complex purchase decisions they have is how to ‘buy’ their website.  If the website is to be a Powerful Sales Representative, then careful Website Planning is involved.  A website is as complex as an automobile and it is far too easy to create a website that is "Unsafe At Any Speed".

Given the ever evolving complexity of multiple browsers and a wide variety of devices, the only safe and sure way to avoid major disappointment is to carefully define the website functional specifications.  To understand what that involves, it is worth checking out a sample website spec.  Only with a carefully detailed specification can disaster be avoided. 

Undoubtedly most websites can be seen by their designers and by the website owner in a satisfactory way on their preferred device/browser combination.  However it must be seen in an attractive way by all their prospects with whatever device/browser combination they may be using.  That takes the right functional specification to achieve that.

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