data-driven marketing
DESCRIPTION
Presentation given at Startup Marketing Bootcamp in Cambridge, MA in October 2010.TRANSCRIPT
Data-Driven Marketing
Startup Marketing BootcampCambridge, MA - October 2010
“In God we trust; all others must bring data.”
- W. Edwards Deming
David Cancel@dcancel
Who am I
Companies Advisor Investor
The Problem:98% of the people who visit your site, leave never to return.
“The average conversion rate in the United States of America whether you're selling elephants or iPods.”
Avinash Kaushik - Analytics Evangelist, Google
2%
The Solution:Our software helps you find, engage and convert more of your website visitors into customers.
Performable Analytics
Online Marketing is shifting.
Online Marketing Paradigm Shift
Outbound• “Visitors” not People• Display & Search Advertising• What’s a Conversion?• Website• Get more Pageviews
1st Generation
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
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
Internet Marketing 3.0 Different Goal
by Joshua Porter
InboundMarketing
LifecycleMarketing
Outbound Marketing
RelevantMarketing
CustomerService
CustomerAnalytics
Components of Lifecycle Marketing
http://www.flickr.com/photos/joao_trindade/4363149160/
Optimize your startup for learning by creating a data-driven marketing framework.
Analytics & A/B Testing are also not the answer.
Use quantitative & qualitative data to test YOUR assumptions.
A/B Testing. Multivariate Testing. Huh?
Multivariate Testing is Useless.
You are way too small to matter.
The point of testing is to prove or disprove assumptions quickly.
Multivariate testing leads to a non-gratifying experience because it takes too long.
The vast majority of sites should only use A/B testing. This means you.
Shameless Plug: ABTests.com
Learn by example
Always Be Testing Just Don’t be Stupid.
The Local Maxima Problem
Your Design
A Better Design
Optimized at Local Maxima
Current
by Joshua Porter
Optimize your startup for learning not data.
The 3 Steps to Data-Driven Startup Enlightenment
Data-Driven Startup Checklist
★ Operating Dashboard
★ Conversion Funnel Analysis
★ Cohort Analysis
Skip the fancy shit and use Google Spreadsheet. Ghettofabulous.
Step 1: The Operating Dashboard.
A single place for your entire team to see where you suck the most.
Company-wide dashboard Everyone! Including interns.
Fictional
Every initiative has to map to positive changes in these numbers.
Kill all features that don’t improve your operating metrics.
Only move to the second step after you’ve mastered the Operating Dashboard.
Step 2: Conversion Funnels
Metrics are fun, but Funnels kick ass.
Fancy Forget pretty visualizations
Pretty Wasted time
Keep it raw & ugly Do this tomorrow morning.
Monitor your funnel weekly to see how changes are impacting your business.
If you aren’t doing this you are implementing lots of useless features.
Features that will waste your precious time.
Step 3: Cohort Analysis
This is the “shot caller” of all analyses. Respect.
Cohort Analysis by Fred Wilson (post)
Without a cohort analysis you are flying blind.
Is your churn going up or down?
You don’t have a clue until you’ve done a cohort analysis.
Cohort analytics is in closed beta. Apply at Performable.com.
Focus on your customers. Not data.
Only one thing matters.
Does anyone care about your product?
Remember that your goal is simple!
Happy Customers
David Cancel
Twitter: performablehttp://www.performable.com
Thank You!