Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
David Cancel- @dcancelhttp://davidcancel.com/
Data-Driven Startups
NYVC Speaker Series
New York, NY, September 2010
Twitte...
David Cancel- @dcancel
“In God we trust; all others must bring data.”
- W. Edwards Deming
David Cancel- @dcancel
Who am I
Companies Advisor Investor
David Cancel- @dcancel
The Problem:
98% of the people who visit your site, leave
never to return.
David Cancel- @dcancel
We love making
something from
nothing.
Yes, we’re hiring.
David Cancel- @dcancel
Talking, Reading and
Dreaming are
Worthless
Get it done.
David Cancel- @dcancel
#JFDI
Just Fucking Do It.
Please.
David Cancel- @dcancel
Lean Startup? Customer Development?
Who cares...
David Cancel- @dcancel
It can all be summarized into one sentence.
David Cancel- @dcancel
Does anyone give a shit about your dumb
idea?
David Cancel- @dcancel
There are NO repeatable patterns for
startup success. None. Stop looking for
one.
David Cancel- @dcancel
Do I have your attention now. ;-)
David Cancel- @dcancel
Buy this book
This is the best startup
book I’ve ever read.
I personally own two
copies.
Required r...
David Cancel- @dcancel
And this one too.
This is more of a “manual”
than a “book”.
Good for everyone on your
team to read....
David Cancel- @dcancel
But remember that you will not find any
“secrets” in those books. Stop looking for
one.
Go solve a ...
David Cancel- @dcancel
Ok enough ranting.
David Cancel- @dcancel
Time to talk data.
David Cancel- @dcancel
http://www.flickr.com/photos/joao_trindade/4363149
160/
David Cancel- @dcancel
Optimize your startup for learning by
creating a data-driven framework.
David Cancel- @dcancel
Analytics & A/B Testing are also not the
answer.
David Cancel- @dcancel
Use quantitative & qualitative data
to test YOUR assumptions.
David Cancel- @dcancel
A/B Testing. Multivariate Testing. Huh?
David Cancel- @dcancel
Multivariate Testing is Useless.
David Cancel- @dcancel
You are way too small to matter.
David Cancel- @dcancel
The point of testing is to prove or disprove
assumptions quickly.
David Cancel- @dcancel
Multivariate testing leads to a non-gratifying
experience because it takes too long.
David Cancel- @dcancel
The vast majority of sites should only use
A/B testing. This means you.
David Cancel- @dcancel
Shameless Plug:
ABTests.com
Learn by example
David Cancel- @dcancel
Always Be Testing Just Don’t be Stupid.
David Cancel- @dcancel
The Local Maxima Problem
Your Design
A Better Design
Optimized at Local Maxima
Current
I stole this...
David Cancel- @dcancel
“Design is never done”
- Joshua Porter
David Cancel- @dcancel
Optimize your startup for learning not data.
David Cancel- @dcancel
The 3 Steps to Data-Driven Startup
Enlightenment
David Cancel- @dcancel
Data-Driven Startup Checklist
Operating Dashboard
Conversion Funnel Analysis
Cohort Analysis
David Cancel- @dcancel
Skip the fancy shit and use Google
Spreadsheet. Ghettofabulous.
David Cancel- @dcancel
Step 1: The Operating Dashboard.
David Cancel- @dcancel
A single place for your entire team
to see where you suck the most.
David Cancel- @dcancel
Company-wide
dashboard
Everyone! Including interns.
Fictional
David Cancel- @dcancel
Every initiative has to map
to positive changes in these numbers.
David Cancel- @dcancel
Kill all features that don’t improve
your operating metrics.
David Cancel- @dcancel
Only move to the second step after you’ve
mastered the Operating Dashboard.
David Cancel- @dcancel
Step 2: Conversion Funnels
David Cancel- @dcancel
Metrics are fun, but Funnels kick ass.
David Cancel- @dcancel
Fancy Forget pretty visualizations
David Cancel- @dcancel
Pretty Wasted time
David Cancel- @dcancel
Keep it raw & ugly Do this tomorrow morning.
David Cancel- @dcancel
Monitor your funnel weekly to see how
changes are impacting your business.
David Cancel- @dcancel
If you aren’t doing this you are
implementing lots of useless features.
David Cancel- @dcancel
Checkout my friends at KissMetrics.com to
capture your funnel level data.
David Cancel- @dcancel
Step 3: Cohort Analysis
David Cancel- @dcancel
This is the “shot caller” of all analyses.
Respect.
David Cancel- @dcancel
Cohort Analysis by Fred Wilson (post)
David Cancel- @dcancel
Without a cohort analysis you are flying
blind.
David Cancel- @dcancel
Is your churn going up or down?
David Cancel- @dcancel
You don’t have a clue until you’ve
done a cohort analysis.
David Cancel- @dcancel
Time for some more ranting.
David Cancel- @dcancel
Data Visualizations are a Waste of Time.
David Cancel- @dcancel
Don’t use anything except for these 3
charts.
David Cancel- @dcancel
80%
19%
1%
Frequency
David Cancel- @dcancel
Focus on your business. Not data.
David Cancel- @dcancel
This is usually when I get some “data”
questions.
David Cancel- @dcancel
Things clueless people ask
What type of algorithms do you use?
What metrics should I use?
Anything ...
David Cancel- @dcancel
No one cares how smart you are
except for your mom.
David Cancel- @dcancel
Only one thing matters.
David Cancel- @dcancel
Does anyone give a shit about your dumb
idea?
David Cancel- @dcancel
Thank You!
David Cancel Email: dcancel@dcancel.comTwitter: dcan
http://davidcancel.com
Upcoming SlideShare
Loading in …5
×

Data-Driven Startups

1,278 views

Published on

My talk on building Data-Driven Startups

Published in: Business

Data-Driven Startups

  1. 1. David Cancel- @dcancelhttp://davidcancel.com/ Data-Driven Startups NYVC Speaker Series New York, NY, September 2010 Twitter hash tags: #datadriven #nyvc
  2. 2. David Cancel- @dcancel “In God we trust; all others must bring data.” - W. Edwards Deming
  3. 3. David Cancel- @dcancel Who am I Companies Advisor Investor
  4. 4. David Cancel- @dcancel The Problem: 98% of the people who visit your site, leave never to return.
  5. 5. David Cancel- @dcancel We love making something from nothing. Yes, we’re hiring.
  6. 6. David Cancel- @dcancel Talking, Reading and Dreaming are Worthless Get it done.
  7. 7. David Cancel- @dcancel #JFDI Just Fucking Do It. Please.
  8. 8. David Cancel- @dcancel Lean Startup? Customer Development? Who cares...
  9. 9. David Cancel- @dcancel It can all be summarized into one sentence.
  10. 10. David Cancel- @dcancel Does anyone give a shit about your dumb idea?
  11. 11. David Cancel- @dcancel There are NO repeatable patterns for startup success. None. Stop looking for one.
  12. 12. David Cancel- @dcancel Do I have your attention now. ;-)
  13. 13. David Cancel- @dcancel Buy this book This is the best startup book I’ve ever read. I personally own two copies. Required reading for startup engineers. You can find it on Lulu.com
  14. 14. David Cancel- @dcancel And this one too. This is more of a “manual” than a “book”. Good for everyone on your team to read. If people care about your product read this to learn how to determine if you can turn your hobby into a business. You can find this on Amazon.
  15. 15. David Cancel- @dcancel But remember that you will not find any “secrets” in those books. Stop looking for one. Go solve a problem.
  16. 16. David Cancel- @dcancel Ok enough ranting.
  17. 17. David Cancel- @dcancel Time to talk data.
  18. 18. David Cancel- @dcancel http://www.flickr.com/photos/joao_trindade/4363149 160/
  19. 19. David Cancel- @dcancel Optimize your startup for learning by creating a data-driven framework.
  20. 20. David Cancel- @dcancel Analytics & A/B Testing are also not the answer.
  21. 21. David Cancel- @dcancel Use quantitative & qualitative data to test YOUR assumptions.
  22. 22. David Cancel- @dcancel A/B Testing. Multivariate Testing. Huh?
  23. 23. David Cancel- @dcancel Multivariate Testing is Useless.
  24. 24. David Cancel- @dcancel You are way too small to matter.
  25. 25. David Cancel- @dcancel The point of testing is to prove or disprove assumptions quickly.
  26. 26. David Cancel- @dcancel Multivariate testing leads to a non-gratifying experience because it takes too long.
  27. 27. David Cancel- @dcancel The vast majority of sites should only use A/B testing. This means you.
  28. 28. David Cancel- @dcancel Shameless Plug: ABTests.com Learn by example
  29. 29. David Cancel- @dcancel Always Be Testing Just Don’t be Stupid.
  30. 30. David Cancel- @dcancel The Local Maxima Problem Your Design A Better Design Optimized at Local Maxima Current I stole this slide from Joshua Porter - @bokardo
  31. 31. David Cancel- @dcancel “Design is never done” - Joshua Porter
  32. 32. David Cancel- @dcancel Optimize your startup for learning not data.
  33. 33. David Cancel- @dcancel The 3 Steps to Data-Driven Startup Enlightenment
  34. 34. David Cancel- @dcancel Data-Driven Startup Checklist Operating Dashboard Conversion Funnel Analysis Cohort Analysis
  35. 35. David Cancel- @dcancel Skip the fancy shit and use Google Spreadsheet. Ghettofabulous.
  36. 36. David Cancel- @dcancel Step 1: The Operating Dashboard.
  37. 37. David Cancel- @dcancel A single place for your entire team to see where you suck the most.
  38. 38. David Cancel- @dcancel Company-wide dashboard Everyone! Including interns. Fictional
  39. 39. David Cancel- @dcancel Every initiative has to map to positive changes in these numbers.
  40. 40. David Cancel- @dcancel Kill all features that don’t improve your operating metrics.
  41. 41. David Cancel- @dcancel Only move to the second step after you’ve mastered the Operating Dashboard.
  42. 42. David Cancel- @dcancel Step 2: Conversion Funnels
  43. 43. David Cancel- @dcancel Metrics are fun, but Funnels kick ass.
  44. 44. David Cancel- @dcancel Fancy Forget pretty visualizations
  45. 45. David Cancel- @dcancel Pretty Wasted time
  46. 46. David Cancel- @dcancel Keep it raw & ugly Do this tomorrow morning.
  47. 47. David Cancel- @dcancel Monitor your funnel weekly to see how changes are impacting your business.
  48. 48. David Cancel- @dcancel If you aren’t doing this you are implementing lots of useless features.
  49. 49. David Cancel- @dcancel Checkout my friends at KissMetrics.com to capture your funnel level data.
  50. 50. David Cancel- @dcancel Step 3: Cohort Analysis
  51. 51. David Cancel- @dcancel This is the “shot caller” of all analyses. Respect.
  52. 52. David Cancel- @dcancel Cohort Analysis by Fred Wilson (post)
  53. 53. David Cancel- @dcancel Without a cohort analysis you are flying blind.
  54. 54. David Cancel- @dcancel Is your churn going up or down?
  55. 55. David Cancel- @dcancel You don’t have a clue until you’ve done a cohort analysis.
  56. 56. David Cancel- @dcancel Time for some more ranting.
  57. 57. David Cancel- @dcancel Data Visualizations are a Waste of Time.
  58. 58. David Cancel- @dcancel Don’t use anything except for these 3 charts.
  59. 59. David Cancel- @dcancel 80% 19% 1% Frequency
  60. 60. David Cancel- @dcancel Focus on your business. Not data.
  61. 61. David Cancel- @dcancel This is usually when I get some “data” questions.
  62. 62. David Cancel- @dcancel Things clueless people ask What type of algorithms do you use? What metrics should I use? Anything related to a regression analysis. Anything related to data visualization.
  63. 63. David Cancel- @dcancel No one cares how smart you are except for your mom.
  64. 64. David Cancel- @dcancel Only one thing matters.
  65. 65. David Cancel- @dcancel Does anyone give a shit about your dumb idea?
  66. 66. David Cancel- @dcancel Thank You! David Cancel Email: dcancel@dcancel.comTwitter: dcan http://davidcancel.com

×