Startup Tip: Four Questions To Ask When Making Decisions Based On Metrics And Statistics

People are generally obsessed with metrics and statistics. Some on Twitter constantly talk about their number of followers or the number of lists on which they appear. Those on Facebook talk about how many friends they have. Bloggers talk about how many comments people have left in their blog or the number of times their posts have been tweeted. The media fixates on traffic to websites. Statistics and metrics are everywhere, and most people make decisions based, at least in part, on those statistics and metrics.

In an earlier video, I talked about the types of metrics and statistics that startups and small businesses should monitor. But statistics and metrics can be very misleading, and wrong. Here are four questions I always ask when making decisions based on metrics and statistics:

What questions do YOU ask before making decisions based on metrics and statistics?

Startup Tip: Simplify Software Features and Iterate More Often

My experience with crowdSPRING over the past several years has proven to me that with few exceptions, startups must keep their feature-sets simple and release software more often so that they can iterate and leverage feedback from users. Time and time again, we’ve made the mistake of over-thinking a feature only to learn that we didn’t do a good job planning and took far too long to release that feature.

Over the past three months, we’ve done a better job – simplifying our scope and iterating more often. It’s clear to me that what we’re doing now – simple, focused features followed by iteration – is the best way for startups to operate. I explain why in the following video.

Do you agree that startups should simplify features and iterate more often?

Problems Are Opportunities, Not Threats

“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.” – Albert Einstein

People learn best from experience.

Experience tempts us to accept that a particular solution to a problem is the best solution. For example, an engineer who solved a complex technical problem in a certain way might assume that similar technical problems could be solved in the same manner. A marketing person who achieved success with a viral marketing campaign might assume that when they next need to build buzz about a product or service, a viral marketing campaign would be the best way to proceed. An entrepreneur with a successful startup and exit might assume that they can repeat again by simply doing the things that made them successful in the first place.

I was reminded of this when recently talking to my engineering team about scaling crowdSPRING and the different approaches we can take to scale our site.

As we talked about a menu of options (hardware improvements, threading, database scaling, cache strategies, etc.), I was struck by this: we were all relating our personal beliefs based on our experiences with different scaling solutions as if those beliefs and our experiences were the only truth. For example, those who had negative experiences with reverse proxy solutions were critical of such solutions. Those who had good experiences with reverse proxy solutions spoke favorably about them.

Experiences can lead us to stop questioning, and that’s exactly what was happening in our discussion about scaling strategies. That’s a dangerous situation to find yourself because true innovation requires us to see problems as opportunities, not as threats.

It’s natural, when we see problems as threats, to try to solve them quickly and to solve them in ways that we successfully solved other similar problems. And that’s sometimes not unreasonable – solutions that worked for us before are sometimes the best solutions.

But if we want to see problems as opportunities – so that we can innovate and build on our experience, we all must remember to never to stop questioning.

Five Things You Can Do To Improve Your Company’s Customer Service

I’ve talked previously about the need for startups to differentiate from their competitors and the need to understand your competitive advantage. For example, my company, crowdSPRING, differentiates by delivering outstanding customer service to our community of nearly 70,000 users from nearly every country in the world. In the following video, I offer five suggestions based on our experience, of the things you can do to improve your company’s customer service.

Can you suggest other tips for companies who want to provide world class customer service to their customers?

Worry Less About ROI – Worry More About Being Relevant

People are obsessed trying to figure out ways to measure ROI (return on investment) from social media marketing – and from other forms of marketing. ROI is important, but can be a red herring. At the end of the day, ROI is meaningless if your product or service isn’t relevant. Here’s why:

What do you think? Is relevancy just as important as ROI?

Focus On Conversions, Not Just On Site Traffic

Many companies, especially small business and startups, obsess about the amount of traffic to their site.  Site traffic is important – it brings attention and the opportunity to convert visitors into users or paying customers. But traffic alone isn’t enough. In the following video, I offer three reasons why you should spend as much time focusing on your conversion efforts as you do focusing on your marketing and other traffic-generating efforts.

What do you think? Are conversions as important as traffic-generating efforts?

Are You Marketing You or Your Message?

There’s a common misconception, especially among those interested in social media, about content and self-promotion. Some argue that people shouldn’t worry about self-promotion and shouldn’t attempt to promote their commercial activities.

This attitude has prompted some of the thoughtleaders of social media – those who share outstanding content day after day – to constantly defend their own activities that are, or could be perceived as, commercial in nature.

I was excited to see Chris Brogan, Darren Rowse, Brian Clark and Sonia Simone launch Third Tribe yesterday (I joined). I was unhappy to see that Chris included a few paragraphs for the “naysayers” – explaining why he was launching this new venture. Here’s what Chris wrote:

Any time I talk about money, I get a bunch of emails telling me that I’ve jumped the shark or that I’m a sellout. I did when we published Trust Agents. I did when I took my first affiliate ad for Thesis. I’ll just say my part about this up front, and you can blog whatever about it elsewhere.

The reason for building a membership forum site is that we can share information that we use for our businesses. It’s not what we want to post on our blogs. It’s something people are paying to learn and hopefully use for their own business efforts, and because of that, we think it’s of value. Don’t want it? Don’t buy it. I do plenty for free, and that’s still useful, too.

It’s not for everyone. It’s for those who want to step up their online marketing game.

The attitude and rhetoric of the naysayers – especially directed towards people who legitimately share great resources and knowledge – is appalling. The rhetoric – often driven by ignorance and jealousy – has caused much damage. Trust in information from friends and peers has dropped significantly over the past year.

Much of this damage has been caused by confusion over, and misunderstanding of, self-promotion. Everyone, whether they intend to or not, self-promotes.

Let me repeat that: everyone self-promotes.

Whether or not your online (or offline) activities support or are supported by commercial interests, you self-promote. When Marc Cuban writes in his blog, he self-promotes. He may not always intend to do so, but he does self-promote. Every time. So do I, whether I intend so or not. Sharing IS self-promotion.

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Be Better Than You Ever Thought You Could Be

Don Dodge, a Developer Advocate at Google (and before Google, a startup evangelist at Microsoft), wrote a fascinating post a few days ago about ways that Google measures success. In his post, Don talked about Google’s impossible goals:

Google sets impossible bodacious goals…and then achieves them. The engineering mindset of solving the impossible problem is part of the culture instilled in every group at Google… Most big companies set annual goals like improving or growing something by x%, and then measure performance once a year. At Google a year is like a decade. Annual goals aren’t good enough. Set quarterly goals, set them at impossible levels, and then figure out how to achieve them. Measure progress every quarter and reward outstanding achievement.

Don submitted his quarterly goals, focusing on aggressive but achievable goals. His manager said they weren’t good enough because “you can’t achieve amazing results by setting modest targets. We want amazing results. We want to tackle the impossible.”

I’ve been thinking about Don’s post for the past few days. I’ve always set impossible goals for myself – that’s one way I’ve been able to focus and grow – both intellectually and professionally. But while I’m comfortable setting impossible goals for myself, I’m wondering whether many companies could follow Google’s lead and ask their employees to set impossible goals.

Many employees would be uncomfortable with goals that appear unreachable. Based on many conversations with my employees, I understand that discomfort.The discomfort is not unreasonable – and it’s very rational.

If I had the choice, I would choose Google’s approach. I’d rather work with people who set impossible goals and achieve 65% of the impossible. Don Dodge is spot on – 65% of the impossible is, at least for me, better than 100% of the ordinary.

Yet most startups could not effectively emulate Google in setting impossible goals. Google brings many tangible and intangible factors to the table that allow Google to be different. Among many other factors, Google has huge cash reserves – it can weather failure. Google also pays huge rewards for success – so there’s a big reward for those who reach the impossible. Most startups simply aren’t built like that – they have limited funds and limited means to reward success.

But the fact that most startups are not able to emulate Google’s impossible goals culture shouldn’t push startups to focus only on achievable goals. Startups that don’t push their teams to excel are doomed to fail and are often overtaken by more nimble and aggressive competitors.

Rather than ask employees to be better than everybody else and to achieve impossible goals, smart startups could ask each employee to be better than the employee ever thought they could be. After all, the impossible is what nobody could do before someone does it.

Startup Tip: Challenge Your Customer’s Assumptions

Green initiatives are all around us – green building, agriculture, computing, design. But while more companies and people are doing more things, the needle is hardly moving. This is not surprising. The last several centuries – particularly the 20th – have promoted consumption as a key to a better life.

One reason that the needle is hardly moving: failure to change assumptions. Manufacturers continue to produce tons of products – with “Energy Star” or “green” labels on it. We’ve done little to alter our assumptions about consumption and as a result, it seems like we’re fighting a battle we cannot win.

Green initiatives must demonstrate efficacy and also must educate people and persuade them to sometimes spend MORE money, often for less. For every green business, there are dozens who don’t care much about being green. Those promoting green practices are starting to understand that real progress will require people to change their assumptions about consumption.

Startups can learn an important lesson from the public’s collective response to green initiatives: to change behavior, you sometimes have to change people’s assumptions. This is especially true for startups that are trying to get people to do something they’ve never done before. Before Twitter, most people would have said that it would be impossible and futile to attempt to converse in 140 character phrases. Twitter has succeeded, in part, by persuading people to change their assumptions about the length of communications.

It’s not enough to have a technically superior product. Betamax was technically superior to VHS. HD DVD was technically superior to Blue Ray. Consumers don’t always buy the best products – they purchase products they believe are best. Many consumers ignore organic foods because of price – despite the fact that they believe that organic foods are healthier. Solar energy has failed to gain acceptance except when the government heavily subsidizes the technology so that the price of solar is equal to or less than competing technologies.

It’s not easy to change assumptions. Companies that attempt to do so are seen by some as heretics. Apple is perhaps one of the best examples. Thousands of articles have been written during the past week about what’s NOT included in the upcoming iPad. People assume that because other manufacturers have included usb ports, cameras, and other bells & whistles on tablet PC’s, that the iPad should have all of those things too. But Apple has never followed – they’ve always led by asking their customers to change assumptions about how they would use their PC.

Remember when Apple removed the floppy disk from the iMac G3 in the late 1990s? Many people were shocked and it took nearly all other manufacturers another decade to start selling PCs without a floppy drive. By challenging assumptions and asking their customers to change their behavior (i.e. stop using floppies), Apple has continued to prosper and innovate.

Consider the products and services your company offers. Most companies compete solely based on price and/or features.

The smart companies…innovate by educating and helping to shape their customers’ assumptions. What are you doing to challenge YOUR customer’s assumptions?

Apply Agile Thinking To Everything You Do

Some of you have heard the term “agile software development”, which refers to a process of software development based on frequent, iterative development. crowdSPRING has been applying the principles of agile development to our own software development efforts for the past year.

We were bogged down throughout much of 2009 launching new products in part because our thinking was too grand. As a result, we ran into too many roadblocks that require further discussion, research, debate, and planning. This caused us to be less effective – and delayed product launches and improvements.

About six months ago, we looked at our non-software development processes (business, strategy, finance, etc.) and wondered why we also couldn’t apply many of the same principles (of agility) to those processes.If you read the Principles behind the Agile Manifesto, you quickly realize that the same principles can apply to many things outside of software development.

About 6 months ago, we started applying principles of agility to everything we do. This has helped us immensely to streamline our processes, to reach quicker decisions, and to iterate our policies and practices much quicker than we had done in the past. We see clear advantages to this approach – I discuss some of these advantages in the following video.