There are numerous marketing systems and methodologies in the marketplace but what makes all of them work is your involvement with your customer or prospect. I believe to a certain extent all systems will work or won’t work based on the level of  involvement. What most systems will do is help you develop certain touch points that will identify and link your product or services to your customer base. How well you can make this authentic and even transparent can be very important. Point in case is social media. It is OK to schedule tweets and blog post to become more efficient but without some actual real-time conversation it is soon recognized by your followers that this is indeed just a platform for you to blast out your message.

I have included a description of the first two  stages of the Value Stream Marketing process:

The Define(Involvement) Stage: The Define stage typically asks us to start with a problem statement. In the marketing sense, can you define the problem that you solve for your customers clearly? Where the problem statement describes the pain, the next statement should describe the relief that is to be expected. After that, we go into a process that is typically defined as Voice of the Customer. There are typically two major categories that are required; Output requirements and Service Requirements. The output requirements relate to the final product or service that is delivered to the customer. The service requirements relate to how the customer would like to be treated and served during the process. The final step in the Define stage is to document the process. Typically, this is done with a high level process map. Don’t worry about it being completely correct as we will use it and develop it further in the remaining processes. More on this Subject: The Marketing Funnel using Six Sigma DMAIC – Define stage

The Measure(Influence) Stage: 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 influence your performance? More on this Subject: The Marketing Funnel using the Six Sigma DMAIC Methodology – Measure stage

These are a couple of the DMAIC principles that you can use to guide someone through your marketing stages. But what are the marketing concepts that you are using in these stages? These concepts are many of the building blocks in the Lean Marketing House Foundation and are the basic marketing tools that you are familiar with when evaluating your marketing. From the general terms such as; Advertising, PR, Social Media and Referrals to the more specific tools that you use such as; Public Speaking, E-zines, Blogging and White Papers.

A Value Stream Marketing Concept: The one concept that many fail to consider is the In direct marketing of “Staying in Touch” with your customer base. Many times your customers are just folded back into the above mentioned terms or with your regular prospects. I would like to challenge your thinking on how you can become involved in your customer’s communities. Becoming active in these areas will not only increase your involvement with your customers and other prospects but there is nothing more effective in making your marketing more efficient. Understanding their needs, what they are looking for, where they are being undeserved is the single greatest marketing concept that I know of. So, if I ask this question: Where are your customers being undeserved? Can you answer it? And/Or, is that a market you have the ability to take care of or build a future alliance from? (Related Book Seeing What’s Next: Using Theories of Innovation to Predict Industry Change)

Related Post with other pertinent links: (Why you should use Kanban in Marketing?)

Followers of my blog have seen how I use DMAIC principles in discussing the marketing funnel and the discussions about adding toll gates for identifying when prospects should move from one stage to the next. Inside the stages, we have different marketing programs that are taking place. But I really never talked about the personnel that were handling these programs. In most sales and marketing applications, you have marketing assigned by the duties they do and salespeople assigned to certain accounts. I think it might be interesting to consider what we have learned in U-shaped or L-shaped work cells.

Instead of the typical arrangement, what would prevent an organization of assigning the personnel and cross-training them within one of the marketing stages. This way they would become experts within the stage and be able to respond to the needs of a prospect better and more efficiently. Since they are handling the tools of the stage, that particular area would have a better chance of improving the methods utilized within it.

In recent times, quality has suffered in sales and marketing. Many times, the customer seems to be more of an expert than the salesperson calling on them. Other times experts have to be brought in and duplication of manpower takes place. Many companies have a sale’s closer; maybe sometimes a sales manager that would come in and have the power to close a prospect when ready. If you were doing that during each stage, the likelihood of passing on better qualified and more prospects may occur. Another consideration that someone may find fault with this type of thinking is geographic boundaries. However, I believe that excuse is seldom the case.

The key to your thinking should be in flow rather than function. Taking each individual stage and think about creating a work cell by defining the operations that take place within that stage. The number of resources within that stage will have to correlate to the number of prospects within the stage. It must be recognized that numbers don’t always work out perfectly or that certain talents may still have to be utilized in several different stages. But I believe that the quality of the interaction would increase with this type of system.

The goal in lean is continuous flow or as close to that as possible, while eliminating waste of waiting and a waste of overproduction. I believe that this type of arrangement would be an organizations first step in leveling sales volume. I’ll save that discussion for another blog post.

Do you think work cells can work in Sales and Marketing? Are they already?

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Using DMAIC for your A3 Report in the Lean Marketing House

Value Stream Mapping

I have recently started using the Kano model in providing a better definition for my clients of putting their product and features not only perspective but defining that clarity issue. The Kano model relates to three factors:

Basic or must be or the expected needs. Without these the customer would be dissatisfied. This sounds very straight forward but if these are not adequately defined during the marketing process they are simply deal breakers and questions that either party may ever asked.

The second aspect is the performance factor and to define that performance think about the term, “more is better.” The more this performance is met, the more the prospect is satisfied. This is the area that the customer measures the value of the product or service they are receiving. In a few cases, these features are the ones that have meaning to some clients and others could care less. They even may cause dissatisfaction to some. Herein lays a great opportunity to improve these areas which many times can be done at relatively inexpensive option. Or, you may even be able to remove them completely for a few of your target segments. If you can, are these segments really your target customer?

Another way to leverage the performance factor segment is to have a better definition of your target market and how it relates to these factors. You may find that making these an option or even using them in a way of further segmenting your customer base may ultimately give you an advantage over the competition either through price or features.

The third factor is the delighters. If these are absent, they will not cause any dissatisfaction at all. The customer does not even expect these. But when they are there, they cause extreme happiness. OK, maybe that is a bit much. An interesting side note that needs to be recognized about the delighters is typically they do not increase the value in the product or the service. Seldom will you get paid more because of them. The delighters may also in time, even become a basic need. What is a delighter today, may be an expectation tomorrow.

The Kano Model is constantly shifting but it is a great method to use to gain a better understanding of your prospects values that are critical to success and to prioritize the requirements for further development activities. Just as importantly, I think it really lends itself to understanding your market segment characteristics better. And if you divide your marketing segments better, you will increase throughput and develop better budgets as a result.

By the way: Another important feature of the Kano Model is that it gives you a better understanding on what  tradeoffs you might have in your marketing cycles. You certainly could not trade off a basic need, but you might be able to reduce the level of a performance factor.

Kanban is a way of limiting work in process and the amount of new work that is introduced into the process. As a result, work would be pulled from the previous stage as work is completed and levels demand. It emphasizes throughput rather than numbers. If you have read my previous posts, you would recognize the emphasis I put on throughput and the need for this to be monitored in the sales and marketing process.

The Reasons for a Kanban can be summed up in these previous posts:

Improve your Marketing Cycle, Increase your Revenue : Speed is important in the buying process. Your total cycle time can be improved. However, it seldom can be done without more feedback loops in your system.  Develop process blitzes to reduce these non-value times. Go to Gemba or the customer’s place of work and find out what happens during this time. See what is stopping them from moving forward. It may be an internal constraint within their company. However, the constraint may be yours. You may not be responding to the customer’s latest needs. Your ability to focus your resources on the customer needs may provide the overall clarity he needs this to make a more rapid decision.

Improve throughput, cut your customers in half!: In a manufacturing system cutting WIP just about always will increase throughput. Why? You end up working only on what is needed and when it is needed. You also will have less waste, less material to handle and fewer mistakes. Good things happen when you are not handling excessive amount of material. In a marketing system cutting the amount of customers in half works very much the same way. You end up working on what a customer truly needs and wants. Your marketing will become more personal, more direct, and fewer mistakes.

Using the Six Sigma Tollgate in your Marketing Funnel: Have you thought of using DMAIC as a way of defining your marketing funnel? We looked at Define, Measure, Analyze, Improve and Control and utilized these basic principles to walk a customer through the marketing funnel. In other posts, I discussed the ability to create a shorter cycle time by decreasing the non-value time in between each of these stages. One of the methods of doing this is to have a strong call to action for a prospect to move from one stage to the next. However, how do you know if a customer is ready to move from one stage to the next?

What kind of questions would you ask at a tollgate?: In a recent post, using the Six Sigma Tollgate in your Marketing Funnel I went through the concept of using a tollgate in your marketing funnel. Below is a list of questions that might help general a few ideas that you may want to consider. (Review Post)

The essential points needed in a Kanban system are:

1. Stock points
2. Replenishment Signal
3. Quick Feedback
4. Frequent Replenishment

If you would consider the typical marketing cycle as a prospect moves from one stage to another, you imagine it as step by step process and certain events taking place within that stage. With a Kanban method or a tollgate you could have certain trigger points for each stage or even a phase within that stage allowing one marketing effort to pull from the previous. The method would also limit the number of prospects within that cycle so that the proper amount could be managed or more importantly satisfied! Or, you could have an unlimited supply of leads flowing into each stage? You probably wish you had the latter. However, which would prove more effective?

Photo Courtesy of Systems2win.

The benefit your service/product is to the user:
A. Provide Modest Enhancements
B. Add substantial value
C. Gives dramatic productivity gains.
D. Changes the competitive field

The pain of obtaining the benefit to the user:
4. Significant reengineering, new systems
3. Major changes to existing systems
2. Modest changes to existing systems
1. Integrates with existing systems

When completing this of course the more opinion and arguments the better. You will have to create a consensus, however and a decision reached. Sometimes positioning the competitor’s products/service around yours can assist. Are more changes required, do they add less or more value? If you end up at square A4, no Gain with a lot of pain, you can probably throw the product/service away. It simply will not work. In fact A2 and A3 should probably cause the same reaction. The truth to the matter is that unless you are doing a startup, you probably end up in the twilight zone. The problem being in the twilight zone, according to author Geoffrey Moore is that these offerings will cause little market movement. In other words, they are not COMPELLING. The other areas follow this pattern:

• D4, you are in an early market category.
• D2/D3 is about market segmentation and making the pain a favorable trade-off to that group.
• C1/D1 means that your product can move to widespread adoption and you are ready for that transition.
• A1, B1 is being accepted in your target market and an easy solution.

This description is a take-off from the book but to fully understand you have to read the Crossing the Chasm. It is a must read and still today it is one of most cited books in the innovation area. I have bought the book around 5 times. I keep giving it away.

However, the point to this entire exercise for me is differentiation relative to the gain and pain of the customer. It is an exercise that enables you to look at your product/service more objectively from your customer’s eyes. Are you really that different if all you are doing is complicating their life without making a significant gain? Another item it addresses is your market segmentation. Are you targeting a customer that your product/service causes little pain? If you are in the twilight zone, where are you headed? What will it take to move you to the outer perimeter? It is a simple answer make yourself more valuable by making the gain greater or the pain less!

Related Posts:

Evaluating your Marketing Funnel, Only Seven Levers matter

Lean Marketing, The Toyota Way

The Marketing Funnel using Six Sigma DMAIC – Define stage

• Getting Started in Social Media
• Marketing your Black Belt
• Get Clients NOW!
• 7 Steps to Small Business Success aka Duct Tape Marketing
• Become Employable
• Becoming Self-Employed
• Lean your Marketing with Referrals
• The Pillars of the Lean Marketing House
• Get Hired NOW
• Lean Marketing Assessment
• Funding your Nonprofit
• Etc.

The reason I list them is there is a common theme in all of them and in Seth Godin’s Blog today he mentioned it in a slightly different way:

Seth’s Blog: First, organize 1,000

In Summary: What’s difficult? What’s difficult is changing your attitude. Instead of speed dating your way to interruption, instead of yelling at strangers all day trying to make a living, coordinating a tribe of 1,000 requires patience, consistency and a focus on long-term relationships and life time value. You don’t find customers for your products. You find products for your customers.

He also mentioned Kevin Kelly’s blog The Technium discussion on 1,000 True Fans.

In Summary:  The key challenge is that you have to maintain direct contact with your 1,000 True Fans. They are giving you their support directly. Maybe they come to your house concerts, or they are buying your DVDs from your website, or they order your prints from Pictopia. As much as possible you retain the full amount of their support. You also benefit from the direct feedback and love.

So what was my common theme: Most people know approximately 300 people on a casual basis. In fact, when not knowing, many wedding planners, funeral directors will use than number as a figure.  So if you know 300, does that mean your wife or husband will know 300 probably not but maybe a 100. What about both of your parents, your siblings, your cousins and people that know you well? Everyone knows 300 people. If you start working with just the people you know in a short time period you can effectively  be marketing to a 1,000 people. If you are a professional service provider, looking for a job or even a nonprofit. Getting to that 1,000 people plateau can be very effective.

1,000 is not that big of number! And it is a great goal for the New Year,  Go for it!.

Related Post:
Where do you start your job search?
Using the Theory of Constraints in Marketing
Another word for Marketing – How about Voice of the Customer?