Published December 2005

Use Six Sigma mind-set
to improve marketing

Most of us associate Six Sigma with improving the manufacturing process. Originally developed by Motorola, Six Sigma is a data-driven approach toward improving process, quality and productivity. The same practice, used by manufacturers, can improve your marketing results.

The tag “Six Sigma” comes from its intention to achieve quality (absence of defects) within six standard deviations between the mean and the closest specification limit, which translates to a maximum of 3.4 defects per million.

Impressive standard, however, I’m suggesting more of a mind-set than a metric. Michael J. Webb, president of Sales Performance Consulting, put it well (in a recent iSix Sigma Magazine article): “As in any process improvement effort, the key question to pose in marketing is: ‘What value does your activity create for the customer?’”

A typical Six Sigma project involves five sequential steps — DMAIC: define, measure, analyze, improve and control. You don’t need to be a “black belt” to incorporate Six Sigma as an approach to improve the results of your marketing activity. Following are DMAIC descriptions and examples of how they can apply to marketing functions.

• Define the problem area you want to improve by developing a “problem statement.” Then determine the team, objectives, resources and timeline. Incorporating the voice of the customer (VOC) is a critical Six Sigma success factor. Example: The sales conversion ratio is too low to continue supporting the current marketing budget. The project team’s objective is to improve net return by 50 percent within 12 months.
• Measure the process to determine the current performance level. Decide what data is required to establish a baseline, then develop a process map, validate the measurement system and collect the data. Example: The current “inquiry to sales” conversion ratio stands at 1-to-20.
• Analyze and determine the root cause(s) of the problem. The objective is to understand the current process well enough to formulate viable options for improvement. Example: The primary breakdown in conversion is that the current marketing activity generates low quality leads.
• Improve the process by dealing with the root cause(s) of the problem. Identify, test and implement solutions to resolve breakdowns or bottlenecks. Example: Based on a customer survey, reposition the selling proposition and media to target a higher-quality market.
• Control future process and performance. Institute a tracking system to maintain process enhancements over time. Develop standard operating procedures and constantly monitor activity and results. Example: Conversion ratios will be reviewed at weekly management meetings.

Your process will be much more detailed than the examples given. But following the linear DMAIC progression will serve as an effective project management method and help you uncover opportunities that will likely lead to greater return on marketing investment.

Another important Six Sigma success factor involves appointing a champion to oversee the process and conduct “tollgate reviews” at each DMAIC milestone to ensure the project stays on track. This will facilitate better reporting and real-time tweaks as necessary.

Use Six Sigma as a philosophical and data-driven approach toward improving your marketing process. A Six Sigma mind-set will generate greater customer value — and that usually translates into better results.

Andrew Ballard, president of Marketing Solutions Inc. in Edmonds, develops brand leadership strategies for businesses and teaches strategic marketing through Edmonds Community College. He can be reached at 425-672-7218 or online at www.mktg-solutions.com.

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