Archive for Marketing-Hourglass
Your Marketing Funnel from your Customer’s Perspective.
Posted by: | CommentsThe Mirror Marketing eBook describes an alternative way of looking at your marketing funnel…from your customer’s perspective.
Related Posts:
Agile, Scrum, Kanban, or is it just a Marketing Funnel?
The Pull in Lean Marketing
Value Stream Marketing and the Indirect Marketing Concept
Marketing Kanban
Value Stream Mapping
Turning your Marketing Cycle into a Kanban
Posted by: | CommentsOne of the first steps that I recommend in developing your Marketing Kanban is to create a Value Stream Map of your Sales or Marketing Cycle. Many people struggle with this concept and in a workshop I asked them to create their best known channel without really discussing their marketing tactics at all. I ask them just to define how many clients they need in this Value Stream to be successful. For illustration purposes I use a common internet model that is recognizable to most of us. A typical Value Stream may look something like this:
- Google Ad
- Website
- Auto-responder
- 30-day trial
- Purchase
- Upsell
- Buzz it up
Of course there are numerous ways someone may reach your website such as Referrals, Search, Social Media, PR, etc. You could include them all, but if you do not measure them individually it will be difficult to improve them as time goes on.
I am going to take just a section of the above Value stream and define an Entry and Exit point to the Kanban(see Bootstrapping the Kanban). The Entry point will be Google Ad and the exit point will be the Purchase point. This will simplify my explanation.
When we discussed the Marketing Kanban before, we discussed creating Work in Process (WIP) limits. The above diagram will demonstrate a very important beginning point for the use of a Marketing Kanban and how we go about determining the basic structure. Start developing your WIP limits by asking these questions:
- How many prospects do you engage with?
- How many become prospects?
- How many are qualified prospects?
- How many use the Free Trial?
- How many become clients?
- How many repeat?
- How many are referred?
I have already confused myself, have I confused you? This is where the Kanban becomes so effective.
This simple structure is easily adjusted and can be used for just about any channel you wish to develop. How do you determine these numbers? Well first, if you don’t already know any of these numbers or just starting out, look at what will be your constraint or control point. Where are you limited?
Maybe, you can only handle 30 clients? Start with something that you know or fill in the blanks with your best guestimate. If you can only complete three of the five examples, complete the others by considering the conversion rates that you have between each. Don’t overly worry about accuracy, especially if you have not measured these before. You can even create a best and worst scenario to the Value Stream.
Are you limited by the dollars you spend on Google ads? Take a known number and plug into your Kanban and just multiply it across. Can you see what happens? Is a client worth $500? Are you Google ads effective enough? Do you need to increase conversion rates thru your free trial?
This particular Marketing Kanban is just a starting point. You may not even use your clients as the basis, you may prefer total sales for the month. However, when you visually display it in a Kanban it does create a very easy observation point, especially for small business.
The next step is to consider the other entry points to your website, for example and/or completely different distribution paths. More than likely these other channels (paths) will have different cycle times and budgets. Do not try to fit one Kanban or Value Stream to everyone.
Related Posts:
Bootstrapping the Kanban
Value Stream Marketing eBook Released
Marketing Kanban 102, Work in Process
What happens when the factory goes away?
Posted by: | CommentsThe other day Seth Godin had a post titled , The factory in the center. He said: Old time factories had a linear layout, because there was just one steam engine driving one drive shaft. Every machine in the shop had to line up under the shaft (connected by a pulley) in order to get power. I really enjoyed the chocolate factory video of Lucy and Ethel that he included with the post. 
I liken that to the Marketing Funnel or Hourglass concept used by so many Info Marketers. When you look at that concept you will see people placing marketing products next to the different stages of the funnel. Each one depicting the opportunities that they have or the marketing action they use in that particular stage. An example is included in a previous post of mine. It is the way I was taught. The marketing funnel concept is just a step by step progression through the marketing process. When you review that concept, does it not seem dated? Is that not just another way of pushing products?
Reviewing many of my own writings from yesteryear (I have always liked that word), I notice the lack of customer pull that I think is required for successful marketing. The marketing process was based on continuing funneling a person through stages to get to the ultimate buying stage. After that, referrals and up-sells were initiated. Though the concept makes it easier to explain, it really serves little purpose in defining what works in today’s marketing and is in fact downright misleading. I use an hourglass as a way of demonstrating a constraint but as an extension of the marketing funnel, I find it is misleading as referral strategies should be introduced much earlier and often in the typical marketing cycle. Think about it, how many of your referrals come from customers? Most come from people that you associate with that may never be a customer.
I really prefer looking at marketing in a much more cyclic fashion and somewhat more of an iterative process. Spending time defining your customer needs and how your organization reacts to those needs is the essence of marketing today. This approach can make your marketing more effective and reliable by reducing your marketing variability. Marketing is simply becoming more about problem solving and addressing customer needs, not what I call the caveman approach; “You need to buy this!” Instead I like to use the term Value Stream Marketing!
Back to Seth Godin’s Post: Now it doesn’t matter where you sit. Now it doesn’t matter whether or not you’re adding to the efficiency or productivity of the machine. Now you don’t market to sell what you made, you make to satisfy the market. Now, the market and the consumer and idea trump the system.
Suddenly, the power is in a different place, and the organization must change or else the donut collapses.
Is your Marketing Funnel or Hourglass working?
Related Category:
Value Stream Marketing and the Indirect Marketing Concept
The Marketing Funnel using Six Sigma DMAIC Methodology
Posted by: | CommentsIf you search Google, there are 88,800 thousand images for the marketing funnel and 38,100 for the marketing hourglass depicted. All having a little different twist going from the Duct Tape Marketing Know, Like and Trust to the Awareness, Consider, Prefer and more. All of them depicting a systematic way to go from initial contact to buy and many of them adding the referral and repeat stages. I believe a systematic way to manage your marketing should not be an option but a fundamental of marketing. However, with this many options can there be a system?
In previous blogs, you have heard me mention that one of the main culprits is variation and the lack of proper segmentation. We think of segmentation both in a horizontal fashion and a vertical. Horizontal will typically result in segments such as: Direct, Internet, Distributor, Joint-Venture and so on. The vertical aspect of your Marketing Funnel is the image on the right depicted below. This funnel allows you to assign different products to each process stage in the hope of maximizing efforts.
However, if you attempt to improve your Marketing Funnel, how would you go about it? Being a Lean Six Sigma Black Belt, the Marketing Funnel bears a close resemblance to the DMAIC process of Six Sigma. Not that I am trying to replace the marketing funnel with DMAIC, but it certainly would not hurt to analyze the resemblance to improve our marketing process. And if you know anything about Lean Six Sigma, the one thing we will attack is variation. However, just using some generic definitions of DMAIC and relating them to the Marketing Funnel can create some interesting observations.
Define
Purpose: Identify the clients, their needs and requirements.
Deliverable: State the need of the client (CTS) and the problem
Measure
Purpose: Quantify Process Performance
Deliverable: Determine baseline process performance
Analyze
Purpose: Identify, Verify and Quantify Root causes
Deliverable: Statistically linking input with output
Improve
Purpose: Create the Solution and Validate
Deliverable: Optimizing Process Operating Conditions
Control
Purpose: Document and Standardize Process
Deliverable: Meet Critical to Quality(CTQ) consistently (Involvement)
Looking at your Marketing Funnel from the DMAIC viewpoint is not that far-fetched, is it?
Related Posts
Your Marketing Vision should define your Customer’s Core Problem
Following the Customer’s Need in your Value Stream Map
