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I've been looking at the "Search queries" section in Google Webmaster Tools recently, and it seems like there is a lot of potential there in finding which pages on a site need improvement.

I'm trying to figure out exactly what to sort or filter on. Do I look at pages with a low average position? Low impressions but high clicks? Pages that are rising up/falling down the rankings? What is the low-hanging fruit here?

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The data only goes back about 1 month so first off i would start collecting it each month so you can begin to track things over time. This could help you spot seasonal changes.

I would then start by reviewing all the pages with high impressions and a reasonable average position as these should be easier to enhance and hopefully gain click through / rankings.

Pages with low impression but high clicks could point to more long tail keywords which i would not see as a bad sign.

You might also want to tie this in with your other keyword data to see if you are ranking / doing well for the phrases you would expect. This could also open up other opportunities for other content generation.

Also if you click through on the query you can get a better idea of the pages being served and therefore help to focus your efforts - it will also help identify if you are focusing keywords on too many pages.

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