Yes, you really can compare apples and oranges

Yes, you really can compare apples and oranges

Today we move from “Y” to “Z” – as in the Z score of Six Sigma process improvement.

While the terminology may sound daunting, the goal is simple: Compare the efficiency of each marketing investment, so you can make better decisions on how to use scarce resources.

Let’s take an example:  One car gets 30 miles per gallon, the other 15 miles per gallon.  

This doesn’t mean the car with 30 mpg is a better car.  It simply means in the ONE task - efficiency of fuel consumption - the 30 mpg car rates higher. 

That vehicle may accommodate only two people – making it entirely impractical for a large group. 

In evaluating marketing investments we are trying to determine which investment is the most efficient in delivering on the goals we have targeted.

Of critical importance, our application of the Z score is “dimensionless.”  What does this mean? 

Unlike the 30 mpg example above, our marketing efficiency model is not “qualified” ― it is not restricted in its use and comparative function to one metric, such as fuel efficiency.  Miles per gallon cannot be used to compare which car is faster, which hauls more, etc.  

The dimensionless efficiency model, however, allows us to compare different activities trying to achieve widely different objectives. 

So which is better, a smaller efficiency number or a larger?  It’s the same as fuel efficiency – the larger the number the more efficient the process.  

For now, just know that you have a powerful tool at your disposal, allowing you to compare “apples and oranges” to determine which investment among competing offers requiring scarce resources is the most efficient.