David Cancel, founder and CEO, Performable

1. Data-Driven Marketing
Startup Marketing Bootcamp
Cambridge, MA - October 2010
by David Cancel - @dcancel

2. “In God we trust; all others must bring data.”
- W. Edwards Deming

3. David Cancel
@dcancel

4. Who am I
Companies Advisor Investor

5. http://www.performable.com/
@performable

6. The Problem:
98% of the people who visit your site, leave never
to return.

7. 2%
“The average conversion rate in the United States of
America whether you're selling elephants or iPods.”
Avinash Kaushik - Analytics Evangelist, Google

8. The Solution:
Our software helps you find, engage and convert
more of your website visitors into customers.

9. Performable Analytics

10. Online Marketing is shifting.

11. Online Marketing Paradigm Shift
Outbound
• “Visitors” not People
• Display & Search Advertising
• What’s a Conversion?
• Website
• Get more Pageviews
1st Generation

12. Online Marketing Paradigm Shift
Outbound Inbound
• “Visitors” not People • “Leads” not People
• Display & Search Advertising • Content Generation
• What’s a Conversion? • SEO Black Magic Hacks
• Website • Convert via Brute Force
• Get more Pageviews • Acquisition not Conversion
• Website + Social Media
• Get more Leads
1st Generation 2nd Generation

13. Online Marketing Paradigm Shift
Outbound Inbound Lifecycle
• “Visitors” not People • “Leads” not People • People & Customers
• Display & Search Advertising • Content Generation • The Message is the Product
• What’s a Conversion? • SEO Black Magic Hacks • Service not Marketing
• Website • Convert via Brute Force • Referrals not Affiliates
• Get more Pageviews • Acquisition not Conversion • Conversion not Acquisition
• Website + Social Media • Your Brand is Everywhere
• Get more Leads • Get more Customers
1st Generation 2nd Generation 3rd Generation

14. by Joshua Porter
Outbound Inbound Lifecycle
Marketing Marketing Marketing
Internet Marketing 3.0 Different Goal

15. Customer
Analytics
Relevant Customer
Marketing Service
Components of Lifecycle Marketing

16. http://www.flickr.com/photos/joao_trindade/4363149160/

17. Optimize your startup for learning by creating a
data-driven marketing framework.

18. Analytics & A/B Testing are also not the answer.

19. Use quantitative & qualitative data
to test YOUR assumptions.

20. A/B Testing. Multivariate Testing. Huh?

21. Multivariate Testing is Useless.

22. You are way too small to matter.

23. The point of testing is to prove or disprove
assumptions quickly.

24. Multivariate testing leads to a non-gratifying
experience because it takes too long.

25. The vast majority of sites should only use A/B
testing. This means you.

26. Shameless Plug:
Learn by example
ABTests.com

27. Always Be Testing Just Don’t be Stupid.

28. The Local Maxima Problem
A Better Design
Your Design
Optimized at Local Maxima
Current
by Joshua Porter

29. Optimize your startup for learning not data.

30. The 3 Steps to Data-Driven Startup Enlightenment

31. Data-Driven Startup Checklist
★ Operating Dashboard
★ Conversion Funnel Analysis
★ Cohort Analysis

32. Skip the fancy shit and use Google Spreadsheet.
Ghettofabulous.

33. Step 1: The Operating Dashboard.

34. A single place for your entire team
to see where you suck the most.

35. Fictional
Company-wide dashboard Everyone! Including interns.

36. Every initiative has to map
to positive changes in these numbers.

37. Kill all features that don’t improve
your operating metrics.

38. Only move to the second step after you’ve
mastered the Operating Dashboard.

39. Step 2: Conversion Funnels

40. Metrics are fun, but Funnels kick ass.

41. Fancy Forget pretty visualizations

42. Pretty Wasted time

43. Keep it raw & ugly Do this tomorrow morning.

44. Monitor your funnel weekly to see how changes
are impacting your business.

45. If you aren’t doing this you are
implementing lots of useless features.

46. Features that will waste your precious time.

47. Step 3: Cohort Analysis

48. This is the “shot caller” of all analyses. Respect.

49. Cohort Analysis by Fred Wilson (post)

50. Without a cohort analysis you are flying blind.

51. Is your churn going up or down?

52. You don’t have a clue until you’ve
done a cohort analysis.

53. Cohort analytics is in closed beta.
Apply at Performable.com.

54. Focus on your customers. Not data.

55. Only one thing matters.

56. Does anyone care about your product?

57. Remember that your goal is simple!

58. Happy Customers

59. Thank You!
David Cancel
Twitter: performable
http://www.performable.com