5 Steps to Lean Six Sigma Marketing success

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An overview of applying Lean Six Sigma to marketing.

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5 Steps to Lean Six Sigma Marketing success

  1. 1. Business901 Product Marketing Lean Marketing5 Steps to Lean Six Sigma Marketing Success
  2. 2. Business901 Product Marketing Lean Marketing Define(Map Current State)Implement(Kaizen) Measure (Lean Metrics) Develop(MapFuture State) Explore (Value Stream)
  3. 3. Business901 Product Marketing Lean MarketingWhat if your marketing was based on these principles? 1. Deliver what the customer really needs or wants? 2. Which marketing creates value and which creates waste? 3. How can your marketing flow with little interruptions? 4. How will your marketing be balanced? 5. What processes will you institute to achieve future state?Now think about this, what is your customer looking for? 1. Solving their problem. 2. Not wasting their time. 3. Simple Solutions 1. Get them what they want. 2. Where they want it. 3. When they want it.
  4. 4. Business901 Product Marketing Lean MarketingCan you have such a thing? Is your marketing team disciplined enough? Is there a betterway to market your operation? Is there a more efficient way to advertise, promote, and referyour products or services? Is there a way getting your customer only the information they wantand when they want it?Lean marketing is a whole-systems approach that creates a culture of continuously improvingprocesses. It is a system focused on and driven by customers, both internal and external. Leanmanufacturing isn’t just an industry buzzword or quick-fix alternative. Increasing competitiondemands a continuous focus on minimal costs, maximum customer options, fast delivery, andhigh-quality products and services.Today’s companies must be innovative while focusing on waste reduction, improved lead-time,maximized flexibility, and upgraded quality. Remember the old adage about marketing - only50 percent of your marketing works, you just did not know which 50 percent. Lean marketingprinciples will allow you to implement proven strategies. The components of Lean Marketinginclude Value Stream, Lean Metrics, Current State, Future State, and Kaizen.
  5. 5. Business901 Product Marketing Lean MarketingLean Six Sigma Marketing Perspective OverviewIn today’s business world, both large and small companies are trying to find solutions to be more costeffective, more efficient, and more innovating. One such solution is using a combination of Lean SixSigma Marketing . Let’s first look at what is the traditional approach to Lean Six Sigma, which would bethe following DMEDI process:1. Define the problem or requirements.2. Measure the process and gather data associated with the problem or requirements.3. Explore the data to identify a cause and effect relationship between variables.4. Develop a new process so that the problem is eliminated and the new results meet the new requirements.5. Implement the new process under a control plan.
  6. 6. Business901 Product Marketing Lean MarketingWithout understanding these steps in the process, people become confused with what planningand standards are meant to be. Standards are not control mechanisms. Having a process does notstunt creativity. A true standard is actually the direct opposite as it allows time to focus on thecreative aspect as it is part of the plan. Standards and plans are dynamic. They let you knowwhere the problem is quicker, where to begin a search for solutions, and prevent you from makingthe same mistake twice. Continuous improvement cannot happen without a standard. Continuousimprovement in any part of the organization is the only true advantage that you have as acompany. So you tell me, is your marketing giving you a sustainable advantage over your competition?
  7. 7. Business901 Product Marketing Lean MarketingDefine – Marketing Segment and Buyer PersonaIt is extremely important during the defining stages of the process to compose and describe themarket segment and buyer persona. These strategic steps are so often overlooked and under-utilized by both small and large businesses. If these steps are done, and eventually improved uponin the Lean Six Sigma fashion, significant marketing dollars can be saved and used properly togrow the business. The one factor of Lean Marketing that should not be minimized during thisprocess is the use of existing and non-existing customers in defining these terms.Knowing your current state is one of the most powerful tools but is the least understood.Establishing a baseline or as it is so well put in Michael Kennedy’s book, Product Development forthe Lean Enterprise: "The root issues must be understood from two perspectives: what is causingthem and what stands between how things should be and what they are. Failure to understand willresult in widespread wishful thinking and superficial solutions.“There is a true art to mapping and takes quite a bit of work to become proficient. However, utilizinga current state mapping process of your marketing is important to precisely know where you areand be able to define that to your customer. Define(Map Current State)
  8. 8. Business901 Product Marketing Lean MarketingDefine – Marketing Segment and Buyer PersonaThe first step in building a Lean Six Sigma marketing process is Define. We typically start with a customerby building his present marketing calendar with all his present materials and events. In many cases, aftercompleting just the marketing calendar, the customer realizes how little of his process is actually tiedtogether. Taking it a step further and discussing his target market and ideal customer, they realize thewaste in their present marketing process. Michael Collins, in the Manufacturer’s Guide to BusinessMarketing , talks about the four marketing myths:Myth #1: More sales = More profits.Myth #2: Any customer is a good customer.Myth #3: Build a better mousetrap and the world will comeMyth #4: Macro markets are more profitable than niche markets.Michael goes on to say, "It is extremely difficult for a company to design new products, advertise, provideappropriate customer services, or efficiently cover a sales territory if it can’t identify specificcustomers. And uncover their needs.“ Define(Map Current State)
  9. 9. Business901 Product Marketing Lean MarketingMeasure/Lean MetricsThe measurements you use determine your success. Having good measurements are the key. Six Sigmais typically seen as a problem solving tool and therefore difficult to relate to marketing. This is where thetheory of Lean Marketing will benefit you the most. Measuring simply by results is just not enough intoday’s world. Using Lean Metrics measured by drivers are at the heart of making your marketing planeffective.Remember, the purpose of Lean Marketing is to reduce waste and provide to the customer’s needs.Marketing should be effective, efficient, and innovating, while focusing on understanding the customer’sneeds. If we keep these thoughts in mind, we will only produce materials of value to a customer andonly give the material to the customer when he needs it versus a constant barrage of information.What about using measurements determined by shorter sales cycles and based on starting when thecustomer need has developed? What about measuring the amount of downloads on a whitepaper and theresulting request for information? What about workshops centered around improving metrics of yourcustomer versus your sales volume?Below are a few guidelines for good metrics: • You must be able to establish a number to it. • Are structured so the number is easily obtainable and updated. • Do not measure everything. • Have key measures that are monitored closely and often. • Used to make you aware of a problem, nothing more. Measure (Lean Metrics)
  10. 10. Business901 Product Marketing Lean MarketingMeasure/Lean MetricsA traditional form of measurement building is the checklist. However, checklists fail to provide muchinformation since it is either completed or not completed. Scorecards are much better measurementdevices. A true Six Sigma practice would include an integrated system of scorecards, which shouldidentify not only what to measure and how well parameters satisfy the set of criteria, but also when tomeasure.Many people believe just completing a marketing calendar is a marketing plan. To be more successful,people need a system for consistent and repeated contacts with their prospects, including a summary ofone’s plan for continuous contact and education of prospects until they become clients. Simple salesforecasts and marketing expense budgets should be included, as well as what may be considered moreimportant - key marketing metrics. Just simply looking at any one of these and not all does not provideenough information to see a future trend, and this is what is so important. Going through such an exercisewill allow you to see trending and define results, so you will know what to concentrate more time on togrow their business and what to concentrate less time on. Measure (Lean Metrics)
  11. 11. Business901 Product Marketing Lean MarketingExploreAt first glance, there may seem a lack of synergy between these items but when one accepts the fact thatit is still in the strategic stages of the development of the marketing plan, the relationship starts comingtogether. The data needed to identify a cause and effect relationship between two variables can besimply put as Customer Needs and Your Solution. This being said, your product/service innovation mustdirectly relate to solving the customer’s needs. Spending time understanding this market opportunityand applying it to the customer’s requirements is imperative. We must not forget to explore and evaluatethese opportunities against our competitor’s offerings.Once this is completed, we would translate the product offering into a Future state Map that must becustomer centric and fit the organization’s processes and culture. In telling the story, we must commit tosomething that not only differentiates ourselves from our competition, but is powerful and has theability to quickly communicate that message. We must also devise an offering at each stage of our salesfunnel, which specifically describes the offering in detail so the conversion process can be flawless.Does each and every person who is part of your sales funnel know what the specific offerings arethroughout the entire process? Do they all know the next step? Explore (Value Stream)
  12. 12. Business901 Product Marketing Lean MarketingExploreThe Value Stream is defined solely by the customer. Your product must meet the customer’s needs atboth a specific time and delivered with the required message. The thousands of mundane andsophisticated things that marketers do to deliver a message are generally of little interest tocustomers. To view value from the eyes of the customer requires needless messages to be reduced.Having identified your ideal customer is to understand all the activities required to explain thebenefits of a specific product and, as a result, optimize the whole marketing process from the view ofthe customer.Sound like a perfect world and impossible to do? Many marketers need to critically evaluate theirprocesses to determine their effectiveness in bringing maximum value to customers. Today’stechniques are creating more efficient methods to deliver targeted messages in the particular mannerthat customers wish to receive it. It must be remembered that it is our job as marketers to deliver themessage in a manner a customer wishes to receive. As an example, one customer wishes to receiveless frequent information in written form while another may prefer daily bits of informationdelivered in a blog. As stated earlier, lean marketing is a system focused on and driven bycustomers. Optimizing the value stream from their eyes and in an efficient process takes marketingto a level not experienced before. Review your past sales to your ideal customers. Determine whenand what was of value to them. That is your value stream and your vision. Explore (Value Stream)
  13. 13. Business901 Product Marketing Lean MarketingDevelopLead Generation is how we change themarketing process. We take the strategies wehave created and how we are going to judgesuccess [measurements]) and put them into aplan through our lead generation efforts.Web Strategy, Public Relations, Referral andAdvertising can be used as the categoriesfor all your efforts and the events, ads,articles, and other actions will be the tactics.To be successful, you must have ameasurement for everything and do not acceptless. If it doesn’t work, justify it with data andstop doing it.We also make use of DMAIC Marketingfunnel to create a system to ensure thecustomers needs are met through every step ofthe process. Develop(Map Future State)
  14. 14. Business901 Product Marketing Lean MarketingDevelop – Lead Generation, Lead Conversion,When you then add the Lean Marketing component, Map Future State, we start seeing it all cometogether. This is the step everyone typically wants to jump to immediately. It is much like projectmanagement and thinking that it is just about scheduling. As a result, it is the most abused and wheremost of the process waste occurs. We make plans and instead of having a sound basis, we useinstincts and tools that are not directed and often based on what I call "The Deal of the Week."An example is the practice of placing advertising to reach a mass audience. The thought process isthat not only do I reach my core constituency but also others. Forget it! That simply is not going tohappen. Do the math! Take your core constituency and divide that by the ad dollars spent. Now, arethose ad dollars well spent? Can you do it more effectively through another media?Using your current state map, ask yourself where would you like to be and realistically what timeframe can you accomplish this? Map the needed tactics to fulfill the metrics you developed. Takeone of the metrics you have mapped in your current state and create a future state map on what isneeded to be accomplished through both the Lead Generation process and the Lead Conversionstage. Take it all the way to the finished product, if possible, and then go back and remove any wastein the process. I challenge you to just try this on one metric and see how it would look ideally. Nowset your timeline on what is achievable. Use this exercise and you can start understandingvalue stream mapping much better. Are your processes getting leaner? Develop(Map Future State)
  15. 15. Business901 Product Marketing Lean MarketingImplement(Kaizen)We will now add the Lean component of creating a Kaizen Plan, but first we need to knowwhat is Kaizen.Kaizen is the Japanese word for continuous improvement. It is all about idea submission,not acceptance. Kaizen has three steps. First, create a standard. Second, follow it. Third,find a better way. Now that we’ve mapped our current and future states, we must startimplementing. We’ve created the plans, therefore creating a standard. Standards will makelife easier because they will create real and lasting value. But for any standard to work, itmust be clearly identified and people must be trained in this method. Once the standard isin place, we will then continuously look for better ways to do the work because to be trulyof lean fashion, we must realize the work is never done, it is continuously improving. Implement (Kaizen)
  16. 16. Business901 Product Marketing Lean MarketingImplement(Kaizen)If you have a sound plan and have the discipline to follow it, implementing the process under a controlplan should not be difficult. Why? Control means maintaining the process, keeping operations stable,predictable, and meeting the customer’s requirements. If it is not stable, you are unable to implementit. The purpose of control is very simple. Once the improvements have been made, you should makesure this new process does not revert back to old processes. Old habits die hard.The most difficult part of this process occurred in earlier stages when establishing the objectives orgoals. I believe these goals should not be result driven. You do want to have the end in mind, but youmust have drivers along the way to see results in real-time. These drivers must be very customercentric. Remember, people do perform on the way they are measured. A simple method forimplementation is to follow these four simple words: plan, do, check, act. You have the plan intact, doit, check it against your drivers, and then act upon the knowledge that you now have. This is called thePDCA cycle. Without adding this part into the implementation phase, you will only plan, act, plan, act,plan, act. This will result in little improvement and a return to the old habits to get the job done. Havethe patience to do it right. Implement (Kaizen)
  17. 17. Business901 Product Marketing Lean MarketingIf you would like to learn more about how to use Lean Sigma Marketing Contact Joe Dager @ info@business901.com Phone: 260-438-0411 Website: Business901.com

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