The Role of Six Sigma in Marketing

Six Sigma puts your consumer first

There is a potential universe of ways to measure and control your Marketing investments. But why reinvent the wheel, when the Six Sigma methodology is easily adapted to your needs?

The biggest barrier is internal – the worry that you’ll have to learn a complex, science-based system with a massive dictionary of new terminology.

Instead, we have chosen the most relevant parts of this extremely well-proven methodology to provide a framework for thoughtful consideration of the marketing mission.

In its most basic definition, Six Sigma is a statistical-based process that seeks to measure performance. It was developed at Motorola in the mid-1980s as a way to detect manufacturing defects per million opportunities. 

Up until that time, the standard measurement was defects per thousand opportunities.  This order-of-magnitude transition made possible, among other things, widespread use of cellular phones.

Six Sigma is a total commitment and philosophy of excellence, customer focus, process improvement and the application of measurement rather than gut feel.

Focus on the Customer.  Marketers have long known the importance of really understanding consumers. In Six Sigma, customer focus becomes THE top priority.

Data- & Fact-Driven Management.  Six Sigma helps Marketing managers answer two essential questions to support data-driven decisions and solutions.  What data do I really need?  How do I use it to maximum benefit?

Processes Are Where The Action Is.  Six Sigma positions THE PROCESS as the key vehicle of success.  One of the most remarkable breakthroughs to date – particularly in service-based industries and functions – is that mastering processes builds competitive advantage in delivering value.  And processes can be REPLICATED. Does anyone really know how to replicate gut feel?

Emphasis on Measurement. A process that is operating within Six Sigma parameters will only have 3.4 defects per million opportunities.  This delivers a very high level of confidence in the outcome.

What you get is a function of what you do

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?

Build the ‘Time Lag Effect’ Into Your Plan

Build the ‘Time Lag Effect’ Into Your Plan

Here’s the problem with trying to measure the impact of your marketing programs on Brand Image: It takes too long.

The impact only becomes evident after the fact.  It’s like looking in a rear-view mirror to judge where you’re going.

This isn’t unique to the goal of building Brand Image, as illustrated by this conceptual chart regarding lead capture as a sub-goal:

 

Perhaps because of my West Point background, I like to use a Pentagon missile analogy here.  The above example is the equivalent of firing a multi-million dollar missile at a target and missing it to the left.  The correction is made and a second missile is fired.  It misses to the right so another correction is made, etc. 

Meanwhile, millions of dollars are being spent firing missiles and making corrections based upon where they land!  I think most would agree this is a highly wasteful approach.

(For the record, the Pentagon doesn’t test missiles this way – it’s just an irresistible analogy.)

So what can you do as a results-driven marketer?

Instead of firing the missile and seeing where it lands, we need a built-in guidance control module.  That is EXACTLY what Six Sigma brings to the process, as depicted in the chart below:

 

Building the process to be measured “en route” assures that adjustments are made during the flight of the missile, making the “hit” a certainty. 

In the worst case scenario, if the missile is flying wildly off target, the “destruct” button can be used to terminate the flight without causing further damage (continually spending money on a loser).

The heart of Six Sigma is the measurement in-process function.

Make Sure You Focus on the Right Objectives

Make Sure You Focus on the Right Objectives

Everyone likes a home run. When we get rave reviews for a really creative idea, something indeed groundbreaking, we naturally feel immense satisfaction.

So … did it help the business?

Not to pour cold water on those warm feelings, but if you’ve been following our previous blog topics, you know that the answer depends on how well the campaign’s goals were defined against relevant corporate goals prior to launch, and how well it delivered against key metrics.

With that level of accountability established up front, you won’t need to wait for the applause to know whether you’ve scored.

You’ll be tracking at least some of the metrics in real-time, and have a very accurate sense of where the final tally will land.

Very, very importantly, you will be able to communicate the precise degree of success to senior management, even as you’re clearing shelf space for your new awards.

By all means continue to hold those high-energy brainstorming sessions. Encourage out-of-the-box thinking. Push the team to break new creative ground.

But when you sit back and start to evaluate the ideas, they must be viewed through the lens of business goals and objectives.

If we are going to generate massive social media response, is it the right audience? Exactly how do we want to influence them? How does traffic relate to revenue?

If we want to generate coverage in the mass media or the trade media, who are we trying to reach as the end consumer of that news? What action do we want them to take as a result?

Feel good about both the quality of your work – and the impact.

Endorsements Can Burnish the Brand Halo

Endorsements Can Burnish the Brand Halo

One tactic to enhance the brand is to “borrow” from a brand with higher perceived value through association.

The highest form of association is endorsement, which can be:

• -       Inferred
• -       Implied
• -       Expressed

In “inferred endorsement,” the consumer is left to make the brand association through mere proximity – in other words, your brand is seen in association with an activity or topic about which the consumer is passionate, therefore the consumer should be passionate about your brand as well.

“Implied endorsement” takes this a step further through an official association with the consumer’s passion point – perhaps as an “official sponsor.” In this case, the consumer message is that your brand is special enough to have been “chosen” for this important role.

The most direct pathway is “expressed endorsement,” in which the subject of the consumer’s passion directly endorses your brand. This may be as straightforward as having a leading golfer express love for your brand of golf equipment.

The more direct the pathway, and the less work you make the consumer do in order to transfer their loyalty, the more effective endorsement is.

This migration of brand values can create, reinforce or change brand perceptions.  It also can increase brand relevance.

It may even be worth creating an event so that you can show this endorsement in its best, most authentic light.

Also note that brand clutter isn’t always a bad thing. Depending on your brand’s relative value, its proximity to other leading brands can lend credibility.

Fully integrated into other channels, such programs can be successful at building awareness outside of traditional channels.