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Translating a Volume increase target into a 6s level

Six Sigma – iSixSigma Forums Old Forums General Translating a Volume increase target into a 6s level

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  • #38786

    Jonathan
    Participant

    All,
     
    I am currently starting with a project to increase the sales volume of our leasing contracts.
    Focus is to provide our customers with better information,… as part of the improvement of the overall aquisition process.
     
    Question:  What should/ could I measure on the individual deal level
     
    Would appreciate some input from people with experience in this area.
     
    Regards,
    j
     

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    #116619

    Bob J
    Participant

    Jonathan,
    Interesting project but how do you know that providing customers with better information is going to increase your sales volume…?  This sounds like someone is trying to jump to an answer without any supporting data and that path is heavily mined…. 
    This is also way beyond the scope a single BB project… 
    See if you can rescope it to either improve your quotation hit rate (landed vs bid) or improvement of your lead generation process. 
    Even these could be too broad a scope but you will have a better chance to increase sales volume with projects at this level over what you were given originally…
    My 2/c…
    Best Regards,
    Bob J
     
     

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    #117090

    Kelly Thrasher
    Participant

    John, I agree with Bob
    It seems that the scope is not well defined.  Having done an increase in market penetration project NOT with 6 Sigma, there are a lot of variables.  It SOUNDS like you want to increase the closing of the deals or completed sales.  It also SOUNDS like you have data supporting the fact that if you provide better or more focused information to your customer, your sales will go up.  Not sure on both.
    My 2 cents would be to get a better focus on what the project is supposed to do.  Something like increasing sales closures rates by providing targeted information to each customer might be more in order.  Of it might even be along the lines of measuring the effects of providing targeted market material with sales closure rates.  I focused on increasing market penetration by positioning the sales force and resources across my market.
    Sorry I can’t be of more help, please keep us informed
    Kelly

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    #117152

    MP
    Participant

    As others have said, you need to very clear in your measures … what is the sales volume now – if your baseline is weak, you’ll have to justify any increase w/ some strong data …
    If you’re are trying to improve the customer acquisition process, then one prong might be to provide more, and higher quality info to clients(maybe via a web site, a configurator, tools, etc.). However, there may be other methods or factors that are more important, e.g., marketing spend, certain marketing campaigns, account planning, value review meetings w/ clients, etc. I would be crystal clear on what your current acquisition rate is (could be # of leads, # of opportunities, net rate of customer inflow, or various ratio).
    I would measure it at an individual pipeline level – depending on your close/win rate, you can determine the multiple you need in the pipe to hit your revenue targets … you can drill down on each pipe to determine differences w/ reps in terms of acquisition, development (e.g., wallet share) and retention rates.
    I would try to narrow down your question and ensure you have some fairly solid baseline and measures to work with … the front-office is often a challenge given the lack of quality data (reliable, operationalized, validity, etc.). A CRM system can help, assuming there’s some user adoption.
    My 2/c
    MP

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