Data-Driven Startups

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Learn the 3 Steps to Data-Driven Startup Enlightenment. Originally presented at the Lean Startup Circle Meetup in Cambridge, MA on July 22, 2010.

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  • David Cancel - @dcancelhttp://davidcancel.com/

    Data-Driven Startups

    Lean Startup Circle BostonCambridge, MA, July 2010

    http://davidcancel.com/http://davidcancel.com/http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    In God we trust; all others must bring data.

    - W. Edwards Deming

    http://davidcancel.com/http://davidcancel.com/http://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/W._Edwards_Deming
  • David Cancel - @dcancel

    Who am I

    Companies Advisor Investor

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    We love making something from nothing.

    Yes, were hiring.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Talking, Reading and Dreaming are Worthless

    Get it done.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    #JFDI

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    #JFDIJust Fucking Do It.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    #JFDIJust Fucking Do It.

    Please.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Lean Startup? Customer Development? Who cares...

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    It can all be summarized into one sentence.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Does anyone give a shit about your dumb idea?

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    There are NO repeatable patterns for startup success. None. Stop looking for one.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Do I have your attention now. ;-)

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Buy this book

    This is the best startup book Ive ever read.

    I personally own two copies.

    Required reading for startup engineers.

    You can find it on Lulu.com

    http://davidcancel.com/http://davidcancel.com/http://www.lulu.com/product/paperback/startup-lessons-learned-season-one-2008---2009/10286294http://www.lulu.com/product/paperback/startup-lessons-learned-season-one-2008---2009/10286294
  • 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.

    http://davidcancel.com/http://davidcancel.com/http://www.amazon.com/gp/product/0976470705?ie=UTF8&tag=fuzzbug&linkCode=as2&camp=1789&creative=390957&creativeASIN=0976470705http://www.amazon.com/gp/product/0976470705?ie=UTF8&tag=fuzzbug&linkCode=as2&camp=1789&creative=390957&creativeASIN=0976470705
  • David Cancel - @dcancel

    But remember that you will not find any secrets in those books. Stop looking for one.

    Go solve a problem.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Ok enough ranting.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Time to talk data.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancelhttp://www.flickr.com/photos/joao_trindade/4363149160/

    http://www.flickr.com/photos/joao_trindade/4363149160/http://www.flickr.com/photos/joao_trindade/4363149160/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Use quantitative & qualitative data to test YOUR assumptions.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    A/B Testing. Multivariate Testing. Huh?

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Multivariate Testing is Useless.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    You are way too small to matter.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Shameless Plug: ABTests.com

    Learn by example

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Always Be Testing Just Dont be Stupid.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    The Local Maxima Problem

    Your Design

    A Better Design

    Optimized at Local Maxima

    Current

    http://davidcancel.com/http://davidcancel.com/
  • 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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Design is never done - Joshua Porter

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Optimize your startup for learning not data.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    The 3 Steps to Data-Driven Startup Enlightenment

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Data-Driven Startup Checklist

    Operating Dashboard

    Conversion Funnel Analysis

    Cohort Analysis

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Skip the fancy shit and use Google Spreadsheet. Ghettofabulous.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Step 1: The Operating Dashboard.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Company-wide dashboard

    Everyone! Including interns.

    Fictional

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Kill all features that dont improve your operating metrics.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Only move to the second step after youve mastered the Operating Dashboard.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Step 2: Conversion Funnels

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Metrics are fun, but Funnels kick ass.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Fancy Forget pretty visualizations

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Pretty Wasted time

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Keep it ugly & raw Do this tomorrow morning.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

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

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    If you arent doing this you are implementing lots of useless features.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Checkout my friends at KissMetrics.com to capture your funnel level data.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Step 3: Cohort Analysis

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    This is the shot caller of all analyses. Respect.

    http://davidcancel.com/http://davidcancel.com/http://www.urbandictionary.com/define.php?term=shot%2520caller&defid=25384http://www.urbandictionary.com/define.php?term=shot%2520caller&defid=25384
  • David Cancel - @dcancel

    Cohort Analysis by Fred Wilson (post)

    http://davidcancel.com/http://davidcancel.com/http://www.avc.com/a_vc/2009/10/the-cohort-analysis.htmlhttp://www.avc.com/a_vc/2009/10/the-cohort-analysis.html
  • David Cancel - @dcancel

    Without a cohort analysis you are flying blind.

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    Is your churn going up or down?

    http://davidcancel.com/http://davidcancel.com/
  • David Cancel - @dcancel

    You dont have a clue until youve done a cohort analysis.

    http://davidcancel.com/http://davidcancel.com/