How Lean Six Sigma Improves Sales
The application of Lean Six Sigma methodologies proved to be a driving force in improving key areas among business organizations. Because of this, top engineering and manufacturing companies have saved on operational costs. Today, the project management platform is now actively shifting its focus in implementing methodologies that companies can use for sales improvement.
Companies that need to improve their operational processes are currently adopting the Six Sigma methodology to train their management and implement techniques in their respective segments. As a top provider of process innovation tools, this platform also includes a disciplined approach that helps reduce defects that exist within the organization.
Lean six sigma Malaysia has garnered several success stories but this was applied in the engineering and manufacturing industries. How is this going to work in the retail industry and how can Lean Six sigma help improve the sales process?
Lean six sigma can be quite useful in the sales and retail industry. It would mean though changing the manufacturing context into sales context tailoring this specifically on the needs of the customer facing aspect that retail marketing deals. Today, several companies started to adopt the methods learned in Lean Six Sigma to improve sales quality and its implementation processes.
It also helps companies select the right project focus area through the implementation of key strategies in different sales processes such as lead generation, sales proposal, forecasting, product launches including the maintenance of sales force efficiency and voice of the customer.
These six project areas are key elements designed to guide business corporations in outlining their objectives to reduce risks. However, among these aspects, Sales force efficiency and voice of the customer (VOC) are considered to provide the breakthrough results that will help generate more revenues for a company.
This leads in the creation of a systematic approach that can help solve communication problems especially on team work. This will also allow everyone in the business to share common goals and awareness on the importance of teamwork.
Its implementation works to avoid losing and gain financial rewards in return. Lean Six sigma Malaysia opens your eyes to key details in the financial aspects that not only deal with financial gains but rewards upon proper execution.
How Lean Six Sigma Improves Sales
It targets the quality of business services which proves to be crucial for success. For example, an improvement in customer experience can lift satisfaction level of a company in all its crucial aspects most especially on sales.
Sales Efficiency and voice of the customer directly impact revenue growth and this is what Lean six sigma Malaysia is currently focused on. When you apply for a six sigma certification Malaysia, you’ll be able to identify root causes of issues affecting sales performance using tools such as Fishbone and the 5 WHY’s.
Note that in assessing these, you’ll be handling both soft and hard factors that affect sales performance. The soft factors such as the selling behavior of an employee are the ones that are usually difficult to measure as compared to the hard factors such as his job experience. The same assessment is done when you learn six sigma in banking.
Companies with customer segments usually need to implement voice of the customer projects. This aims to identify the basic requirements of each customer and work on initiatives to satisfy and exceed expectations. It also plays a crucial role ;for example, in banking institutions where every day, the financial institution caters to the needs of millions of customers and a lot more to complete applications and deal with bank related issues.
The banking industry is also a customer facing institution where sales plays a large role in business continuity. Lean six sigma in banking trainings are also conducted to improve financial processes and increase client satisfaction.
The methodologies used in six sigma are always geared to improve process efficiency for customers. It usually sticks on the principle that the best projects don’t begin inside the organization but outside of it. That particularly points out to the customers.
Quality improvement results to tangible benefits such as big cost savings. It’s where you also see the difference between variables and how this can affect business growth and stability. In this case, statistical analysis is applied because it’s an effective way to fully understand the business concepts including how to address the problems.
When applying this in a six sigma way, one would need to include systems thinking where the business is able t utilize on areas that will provide beneficial resources rather than focus on those that are less productive.
Major companies that implemented six sigma techniques in sales acquisition were able to reduce risks and eliminate unforeseen variables that can damage the business. As a result, a tremendous increase in sales and business growth were noticed.
Lean Six sigma Malaysia helps companies arrive at process driven results because of both statistical and qualitative data. Most companies adopt what is called the DMAIC (Define, Measure, Analyze, Improve and Control) to streamline business operations by indentifying all variables that lead to defects.
In a business perspective, a customer facing industry has a large share on the overall operational cost structure. Companies also spend about 20%-40% specifically on marketing, sales and other administrative activities. These are all customer facing processes that need proper quality control and assessment.
Definition of objectives is crucial to know what factors are going to help drive sales and which of these are crucial for the customers. Once the objectives are identified, the core processes necessary to attain these objectives are laid out too. This may include improving the management processes of the company to lead the implementation of innovation processes including the use of specific tools. .
Managing risks is also crucial and implementation of six sigma helps in reducing these defects. The key is identifying the problems that hinder the goals to be established. Along with identifying the problems comes with prioritizing the issues that are high impacting.
One solution to address high impacting problems is to conduct brainstorming sessions and analysis. In connection with these, quality of data needs to be secured in order to perform the necessary processes for improvement. If you apply Lean six sigma Malaysia in the improvement of retail operations, there’s definitely a chance for positive growth.
By Lean Partner, 21April 2016