Presentation given at Startup Marketing Bootcamp in Cambridge, MA in October 2010.

1. Data-Driven Marketing
Startup Marketing Bootcamp
Cambridge, MA - October 2010

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

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

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

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

15. Relevant
Marketing
Customer
Service
Customer
Analytics
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:
ABTests.com
Learn by example

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

28. The Local Maxima Problem
Your Design
A Better 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. Company-wide dashboard Everyone! Including interns.
Fictional

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