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Archive for Six Sigma

Processes lend themselves to measurement. If you treat your marketing as a process, then you should be able to measure your marketing. The define stage answers the question: What is important? The measure stage will answer that question by asking: How are we doing?Retaining-measure.jpg

I stated in a previous post that the purpose of the Measure stage was to quantify process performance and deliverable was to determine baseline process performance. Without these facts, you will be very ineffective in improving performance. This is the stage which is most difficult for the novice. Adequate measurements in the current state are simply not there many times and as a result we either never get out of this stage be trying to be too precise or we move on without inadequate information that causes us reduce effectiveness of the latter stages. Another common fault is that we start analyzing the data which is the next stage of the process.

Remember that this is a current state not a future state step in the process. Remember, if you think something that you are doing is not measurable, there is someone already measuring it, YOUR CUSTOMER. This brings us back to the marketing funnel and I am correlating the measure phase to the consider phase. In the consider phase, or the like stage of the funnel, prospects are aware of you but now you must prepare them to consider you as a worthy candidate. How do you do that? In the DMAIC methodology we use tools such as Critical to Quality and other tools to determine what is important to a prospect. Instead of thinking about this step from an internal point of view step back and consider what the prospect would use to measure your product or service and make the decision to move through the funnel. Developing measures with customer input will certainly help a prospect move though the funnel.

At this stage, do you know how a prospect is measuring you? What is the most Critical to quality standard that influences your product or service? What is more critical than others? The old saying is that people perform by how they are measured? If your company is based on how they are being measured do you have measurements in places that you are performing too?

This is an area that we taking the process map to a deeper level or developing the current state in a Value Stream Mapping process?

From the Developing and Measuring Training the Six Sigma Way: A Business Approach to Training and Development book, they state that customers’ expectations have three aspects: assume, expected and desired. The assumed customer requirements are the basics and typically are only communicated when the customer is dissatisfied. The expected customers have come to anticipate, certain features from their experience or by observing them in the marketplace. The desired customer requirements, however, are not objectively communicated to the supplier. They represent what desires the customer would really like to have met but does not expect. Some call these customer delights. Could you be scaling yourself in these three areas?

Developing marketing measurements requires a mind-set for accountability. Measurements must be understandable, quantifiable, and economic. Customers objectively and clearly state these requirements and pay the supplier for meeting their explicit expectations. We must be there listening and responding to them. The more these requirements are met, the more the customer is satisfied.

Do you have listening posts built into your processes? What targets are you meeting?

Related Posts:

The Marketing Funnel using Six Sigma DMAIC Methodology

The Marketing Funnel using Six Sigma DMAIC – Define stage

Why Do We Measure?

Related book: What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services

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Categories : Six Sigma
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Nov
26

A Little Law applied in Lean Marketing

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Most marketing systems are out of control. They just have not been managed with understanding the process speed and the effect of the flow on the process. Understanding some of the drivers of this process is much simpler than you might think. A simple equation called Little’s Law can tell us how long it will take any prospect to be turned into a sale simply by counting how many customers are in your funnel and how many sales we complete each day, week, etc.

Marketing Cycle Time = Customer in Process / Closed Sales

Little’s Law is a pretty cool tool and more important than it might seem. Many of us may not know what our average marketing cycle time is, let alone the variation of it. But knowing when someone enters your Marketing Funnel and when they exit it might seem immeasurable. The thought of having to track a prospect through all the stages in the process may seem rather daunting. However, with Little’s Law and segmentation of your individual channels, you can get a reasonable estimate of these factors. We only need two of these factors to get the third. It is just math! We need reliable estimates but if you look at segmentation closely and how Little’s Law applies you can go a long way in getting some very useful numbers. If you know your customers and the process and how many sales you are closing you can estimate your cycle time. If you know your cycle time and the number as sales you close, you can estimate the amount of customers in your process. Cycle Time.jpg

These customers will be waiting between different stages or activities. It may be either internal or external reason but for this conversation it is not important. In lean, we consider this as someone’s queue time. This time in waiting (queue time) counts is a delay, no matter what the reason. As you begin to track your customer’s flow it soon becomes obvious that some of your activities from the eyes of your customers are of little value. A critical metric of waste for any process is what percentage of the total cycle time is spent in non-value added activities and how much of this is waste. The metric used is process cycle efficiency, which relates the amount of value added time to the total cycle time of the marketing process. Typically, marketing cycle efficiency of less than 10% indicates that the process has a lot of non-value added time or added wasted opportunity.

Marketing Cycle Efficiency = Value-added Time / Marketing Cycle Time

Waste is any time, cost, etc. that has no value in the eyes of your customer. All organizations have some waste. Lean shows us how to recognize waste and by utilizing these two simple and doable formulas. Don’t accept that Marketing is not measurable, it is!

Picture courtesy of Wild Hare Decor

Related Post:

Most Marketing Systems are Out of Control.

If you control it well, it flows well!

Value Stream Mapping for Marketing

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Categories : Lean Marketing
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This video series will explain the process I use in building the Lean Marketing House. This particular segment is an overview of the Theory of Constraints and how it applies in the Lean Marketing House.

Related Information:

The Pillar Worksheet

Lean Marketing House Overview – Video

Related E-books

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Categories : Pillars
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