Many marketing and sales managers may be unfamiliar with Six Sigma and why it is important in marketing and sales. Here is a brief introduction to its terms and how it might apply in our world.
Six Sigma is a disciplined methodology that uses data and statistical analysis to measure and improve a company’s operational performance. It focuses on identifying and eliminating “defects” in business processes and has produced hundreds of millions of dollars/pounds in new profitability in a wide variety of industries.
Six Sigma professionals and Sales and Marketing professionals have similar objectives in mind; finding the path of least resistance and sticking to what works best. The difference is that Sales and Marketing often rely on intuition and judgment, while Six Sigma relies strictly on scientific analysis of data (facts, figures).
Six Sigma has been successfully applied to engineering and manufacturing. Adding more “science” to the “art” of marketing offers a number of benefits, including project selections aligned with attractive market opportunities, a faster and more accurate product commercialization process, and better cross-functional communication. The Six Sigma approach of using proven tools, methods, and best practices across the entire marketing process can be the next best thing to a crystal ball because, with time and experience, it can deliver more predictable outcomes.
The Six Sigma Methodology is responsible for billions of dollars in profit improvements in hundreds of companies. It has been effective in finance and service industries (called transactional industries) and in fields as diverse as health care and software development. Now, attention is turning to how Six Sigma can help marketing and sales organizations as well. It has been tried already, to be sure, with successes and some failures unfolding as we speak, just like at the beginning of any new idea!
It’s been well documented that quality of collaboration between sales and marketing directly impacts Return On Investment (ROI).
The challenge that many organizations face is that their sales process is a black box. No one except the sales team knows what is going on inside the black box until a proposal or sale happens. Worse still, 80% of the leads that go into the sales black box are rarely seen again.
This makes it particularly challenging for marketers who are trying to measure their revenue contribution and lead generation ROI.
This book focuses on the new frontier of applying the Six Sigma discipline to an integrated, enterprise-wide strategy to create measurable capabilities in sustaining top-line growth. This book can be read on two different levels. First, it introduces marketing managers and executives to Six Sigma (at a high level) and suggests a unique approach to applying its concepts to marketing. Second, for those familiar with Six Sigma, this book suggests a unique, flexible combination of tools and techniques tailored for marketing. Regardless of which audience you may find yourself in, we trust that this book contains new thinking and practical recommendations that will yield success.