One 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.
Very interesting article!
Nice job.