What you get
is a function of what you do
In previous blogs we’ve talked about defining goals and identifying
metrics that are critical to measuring success. Now let’s look at this in more
detail, using a key Six Sigma process as applied to Marketing.
The general formula we use is:
Y = f (X)
In Six Sigma terms, the letter “Y” is used to designate a goal in
relation to a process. In layman’s terms,
you could simply say that what you get (Y) is a function (f) of what you do (X).
So, if what you do is erect a billboard with a marketing message, what
you get will be a function of the people who see the billboard, and their
reactions to the message. This may be a call to action (such as calling a
toll-free number or pulling off the highway to your gas station), or it may be
increased product awareness or any number of goals.
This is a very simplified example, but it aligns with our earlier
discussions, stating that a goal must be stated in finite terms, with specific
metrics that will define success – how many calls were made to the toll-free
number, how many transactions were conducted at the gas station, etc.
A general objective of “getting more business” could be broken into the
underlying goals of “reducing cancellations,” “recruiting new customers” or “selling
additional services to existing customers.”
There will of course be many, many business goals in any complex
company’s operations. Here are some key questions for each goal:
- What would be the ideal outcome?
- How do we know if the goal
is being affected?
- How do we measure the
long-term and short-term performance against the goal?
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