Lean Six Sigma and the Three "Rs" of Customer Service


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This Green Belt presentation shows the valuable role that Lean Six Sigma can play within Marketing to make data-driven decisions that lead to increased revenue, ROI, and stronger relationships.

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Lean Six Sigma and the Three "Rs" of Customer Service

  1. 1. Cathy Lumsden, Green Belt Candidate January 11, 2013
  2. 2. Define Phase Project Charter Opportunity for Improvement (OFI): The company is losing market share by 30% approximately $25 million quarterly because it is not utilizing Social Media to enhance customer service. Customers are angry, frustrated and taking their business elsewhere. ◦ Critical to Quality (CTQ) = Prevent loss of market share via a Social Media plan Goal Statement: The study will illustrate how the implementation of a Social Media campaign helped the company increase its Revenue, ROI, and Customer Retention through the implementation of Lean Six Sigma. ◦ The company is now attuned to the Voice of the Customer and is competitive. Scope: A large multinational corporation serves as the model for the review. Examined are the 2007 – 2012 quarterly results. Study Metrics: Customer service complaints are compared to revenue loss, customer acquisitions, and customer retentions. Business Case and Team: Identify best Social Media options for Customer Service that will generate in increase in revenue of 65% and a decrease in customer complaints by 85%. ◦ Team Lead: Cathy Lumsden – Green Belt  Tyler Slone – Executive Sponsor  Olivia Turner – Black Belt  Jackson Taylor – Project Champion  Charlotte Hall – MBB/Mentor  Levi Carlton - Recorder
  3. 3. Define Phase  Voice of the Customer
  4. 4. Define Phase  Eight Wastes
  5. 5. Measure Phase  SIPOC DIAGRAM Analyze Recommend Gather Document Implement Customer Service Customer Customer Customer Social Media Survey Results - Service Survey Service Survey Service. Plan - Step 5 Step 3 Solutions Plan - Results - Step 1 Results - Step 2 Step 4
  6. 6. Measure Phase Process Mapping – Customer Decision Journey 1.Consider: What brands/products do consumers have in mind as they contemplate a purchase? 2.Evaluate: Consumers gather information to narrow their choices. 3.Buy: Consumers decide on a brand and buy it. 4.Post-purchase:  Consumers reflect on the buying experience, creating expectations/considerations that will inform a subsequent purchase 5.Advocate: Consumers tell others about the product or service they bought.
  7. 7. Measure Phase Current Value Stream Map
  8. 8. Measure Phase  Pareto Analysis
  9. 9. Measure Phase  Scatter Diagrams The Social Media plan implementation enabled the Call Center to be more responsive to customer issues. The Call Center became proactive in generating revenue and increasing ROI. Web site usage increased. Complaints dealing with service issues, tech support, and delivery delays decreased
  10. 10. Measure Phase  Social Media Distribution Charts – Measures of Dispersion These two sets of distribution charts illustrate the positive impact of Social Media upon Revenue. There is a direct correlation with the decrease in customer complaints to the increase in revenue in millions.
  11. 11. Analyze Phase  Maximizing ROI
  12. 12. Analyze Phase Fishbone Diagram
  13. 13. Analyze Phase Validating Measurement Average Chart Range Chart Parallelism Plot - Revenue Chart
  14. 14. Improve Phase  Failure Mode and Effects Analysis • Improve Process Flow and Eliminate Waste – Waiting (delivery of product vs. promised delivery date), over-processing (hard sale), over-production (customer complaints), defects (technical support), transport (delays), inventory (product) and motion (duplicate calls by staff)
  15. 15. Improve Phase Future Value Stream Mapping
  16. 16. Improve Phase  Sustaining and Extending ROI
  17. 17. Control Phase  IMR Chart As customer complaints decrease , revenue increases Note: Focus is not just on customer complaints incorporates costs of customer complaints – There will always be some customer complaints but they do not always impact revenue. The Social Media Plan is implemented in 2010 QTR 1. These charts show the impact of the plan upon revenue.
  18. 18. Control Phase  Xbar and R Chart of Category (Service, Web, Tech Support, Delivery, and Upgrades)
  19. 19. Control Phase  Extending ROI
  20. 20. Summarization of Lean Six Sigma Project Findings Improvements through Analysis of Customer Service Social Media Programs 1) Seeking an actual response  from the company about a service issue – 50% increase in responsiveness 2) Praising the company for a great service experience – 48% increase 3) Sharing information by customers about their positive service experience with a wider audience – 47% increase 4) Venting frustration about a poor service experience – 46% decrease 5) Asking other users how to have better service experiences – 43% increase