Data-Driven Marketing

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

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

David Cancel @dcancel

Who am I Companies Advisor Investor

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

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

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

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 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

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

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

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

Always Be Testing Just Don’t be Stupid.

The Local Maxima Problem A Better Design Your 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.

Fictional Company-wide dashboard Everyone! Including interns.

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

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

Data-Driven Marketing

by David Cancel

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