Applying Lean in Sales and Marketing - Moving to Process Thinking

1. Lean Sales
Lean Enterprise Series

2. Outline
1.Introduction to Lean Sales
2.Cost of Sales
3.Three Keys to Lean Sales
4.Implementing Lean Sales
5.Summary

3. Lean Sales
To examine the
process itself-how
sales are made and
orders handled
Look at the artificial
incentives built into
most selling processes
that cause uneven
demand
•Great potential
•Synchronizes with
customer needs that
drive profitability
•Sales Bonuses
•Customer Discounts
2 ways to think
about leaning the
sales process

4. Lean Sales
• Lean thinking helps leaders undertand the role of
advertisements, call centers, newsletters and salespeople
in the overall sales production system
• Six Sigma enables an organization to learn why
promotions generate various response rates and why
each salesperson has different closing ratios
• Lean sales provide the facts you need to decide between
investments such as
▫ Promotions vs. Salespeople
▫ Websites vs. Collateral
▫ CRM software vs. Sales training
With lean thinking, there is a new and better way
of leading marketing and selling organizations

5. Cost of Sales
Sales Costs include:
• Salary
• Benefits
• Travel Expenses
According to a recent white paper published by
the Manufacturers Agents National Association,
the cost of a physical sales call has risen to over
$350
The estimated annual cost of a salesperson
has risen to $160,000.

6. Three Keys to Lean Sales
• Sales Managers should be handling the changes of the
corporation and keeping the salespeople:
▫ Insulating the sales team from the pressures of reports,
programs of the month and VP‘s or owners
▫ Sales managers need to take the heat from the top, so the sales
team can keep focused on bringing in more business
▫ Sales managers establish company or team sales goals and
coordinate training programs for sales representatives
▫ Sales managers monitor sales statistics and customer satisfaction
and make adjustments to sales strategies as needed
Sales Managers
Sales Managers should not have their own accounts
and/or territory.

7. Implementing Lean Sales
Specify
Value
Identify
Value
Stream
FlowPull
Perfection
Principles

8. Successful Lean Sales
Companies find it easy to begin with Category 1
projects, as they are easy to map, identify, and
visualize.
Metrics and data based on the process performance
are easy to gather and classify
The processes included can be repeated in a coherent
manner
Create improvements in the effectiveness of internal
processes, but aren’t able to solely produce
revolutionary results that attribute Lean initiatives
Category 1

9. 9
David Pepin, Master Black Belt Lean & Six Sigma
Principal Consultant
The Lean Portal Inc.
Burnaby, British Columbia – Canada
778.791.0373
dpepin@theleanportal.ca