I was doing a Value Stream Mapping project for a customer and as we were creating their marketing segments to create the map, we were having difficulty creating the typical Marketing Hourglass, (Marketing Funnel, Sales Pipeline) for this particular segment. We also wanterd to remove some prospects in the middle of a segment. Some of the reasons were: Large Volume Customer, Customization may be required, Needed quick answers, Willing to pay on value.

I remembered a section of in the Systems2win Value Stream Mapping training section about a FIFO lane. In seemed like the designation that I needed: First In, First Out was not far from how the prospects’ needs were described. In the Value Stream Mapping process a FIFO lane is used for the unusual stuff that often involves unique processing instructions. The problem with using it in marketing is that everyone could be a FIFO.

This is how we went about determining how to set up our FIFO prospects. We created certain signals in our other Value Streams to determine that this may be a FIFO customer. As information was gathered on demographics, psychographics and other criteria it would create signals for us. The signals were acted upon manually, much like a Kanban system would be. The information was transmitted for further investigation and qualification to be put into the FIFO Lane. One of the typical problems with a FIFO lane is that it acts like a chute and can only hold, a specific amount of prospects. You have only a certian amount of resources. We determined if the FIFO chute is full, you must prioritize and remove a prospect and put them back into another marketing segment.

Depending on how your FIFO lane is constructed, here are some examples of how to use your FIFO Lane:

1. This could be your “A” list or the one that marketing and/or sales people create personal contact with and nurture.

2. Special offers could be created that would result in longer or shorter trial efforts, payment terms and delivery. Since these people have been separated and are being handled by more seasoned professionals it does not create such a burden on the rest of the organization.

3. Sequencing into another marketing segment for certain steps so that the others that are managing the process can return the prospect to FIFO when completed.

4. Use it for resource leveling so that customers are never waiting on you. If other steps in the marketing process are backed up (a constraint) use the FIFO Team to manually relieve the bottleneck. (You may even discover new marketing opportunities this way.)

I think the FIFO lane can create novel solutions for your prosepct/customers and maximize the use of your personnel. A seldom used Lean tool that could be a critical component in your marketing management process.

Technorati : Lean, Marketing Funnel, Marketing Hourglass, Sales Pipeline, Value Stream Mapping. FIFO