Using Six Sigma VOC To Improve Sales
http://www.sixsigmaonline.org/articlelive/articles/522/1/Using-Six-Sigma-VOC-To-Improve-Sales/Page1.html
Six Sigma Training Assistant
Aveta Solution's Six Sigma Online offers online six sigma certification classes for lean six sigma, black belts, green belts, and yellow belts.http://www.sixsigmaonline.org
By Six Sigma Training Assistant
Published on 05/10/2008
Six Sigma utilizes a wide variety of tools and techniques for carrying out business process reforms, but the one tool that is most commonly utilized is the VOC, which stands for "Voice of the Customer". This tool stands apart from the rest because it enables businesses to achieve their core objectives, i.e. sales and profit maximization.
Using Six Sigma VOC To Improve Sales
It manages to do so because it concentrates on the eliminating the main problems that might be preventing a business to achieve the desired results as related to sales and profitability.
Here's how businesses are utilizing Six Sigma VOC for improving their sales and profitability.
The Main Problem
Sales and marketing experts may extol the virtues that it is only the perceived value of a product or service that matters most, but this is certainly not true - because what is equally important is the ability of a product or service to satisfy customer tastes and preferences.
Concentrating just on augmenting the perceived value may prove successful initially and help increase sales; but in the long run, it is highly unlikely that customers will keep buying the same products or services based just on the perceived value.
In the long run, customers’ purchasing decisions are most likely to be based on the product's ability to satisfy their most basic needs and requirements. This is exactly where Six Sigma helps - in altering existing products and services and designing and developing new ones, keeping in mind the most basic customer needs, tastes and preferences.
How Six Sigma Does It
The VOC process starts with the collection of input and feedback from both existing and potential customers. This is managed through various channels such as telephone surveys, questionnaires, online feedback forms and email.
Here are some of the most basic questions that are asked during the data collection process.
For Existing Products:
- In terms of quality, how would they rate the product on a scale of 1 to 10?
- Do they use the product regularly or keep shifting between available alternatives?
- If yes, then how would they rate the alternatives in terms of quality?
- What they think makes the alternatives better or worse than the company product?
- Does the price of the product affect their buying decisions or it is just the quality?
- What new features they would prefer if changes were made to the existing product?
- What is the price they are willing to pay for the new features?
For New Products:
- How would they define their basic requirements in relation to the concept of a new product?
- Would pricing play the major role in determining their buying behavior?
- If yes, then how much they are willing to pay for the new product?
The information that is collected is then categorized and put through further processing and analysis using both manual and automated tools. Finally, the information is presented in a proper format such as data tables, graph charts and pie diagrams, which makes it easier for the Six Sigma implementation team to understand the basic needs and requirements of customers and to perform the necessary alterations accordingly.
An increase in sales and profitability is the most likely byproduct of Six Sigma VOC initiatives, and one of the core objectives of all businesses.
Here's how businesses are utilizing Six Sigma VOC for improving their sales and profitability.
The Main Problem
Sales and marketing experts may extol the virtues that it is only the perceived value of a product or service that matters most, but this is certainly not true - because what is equally important is the ability of a product or service to satisfy customer tastes and preferences.
Concentrating just on augmenting the perceived value may prove successful initially and help increase sales; but in the long run, it is highly unlikely that customers will keep buying the same products or services based just on the perceived value.
In the long run, customers’ purchasing decisions are most likely to be based on the product's ability to satisfy their most basic needs and requirements. This is exactly where Six Sigma helps - in altering existing products and services and designing and developing new ones, keeping in mind the most basic customer needs, tastes and preferences.
How Six Sigma Does It
The VOC process starts with the collection of input and feedback from both existing and potential customers. This is managed through various channels such as telephone surveys, questionnaires, online feedback forms and email.
Here are some of the most basic questions that are asked during the data collection process.
For Existing Products:
- In terms of quality, how would they rate the product on a scale of 1 to 10?
- Do they use the product regularly or keep shifting between available alternatives?
- If yes, then how would they rate the alternatives in terms of quality?
- What they think makes the alternatives better or worse than the company product?
- Does the price of the product affect their buying decisions or it is just the quality?
- What new features they would prefer if changes were made to the existing product?
- What is the price they are willing to pay for the new features?
For New Products:
- How would they define their basic requirements in relation to the concept of a new product?
- Would pricing play the major role in determining their buying behavior?
- If yes, then how much they are willing to pay for the new product?
The information that is collected is then categorized and put through further processing and analysis using both manual and automated tools. Finally, the information is presented in a proper format such as data tables, graph charts and pie diagrams, which makes it easier for the Six Sigma implementation team to understand the basic needs and requirements of customers and to perform the necessary alterations accordingly.
An increase in sales and profitability is the most likely byproduct of Six Sigma VOC initiatives, and one of the core objectives of all businesses.