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Complete guide of value stream mapping

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Complete guide of value stream mapping

Auteur n°3 – Benjamin

  • Tags Value Stream Mapping

Importance of Value Stream Mapping

The importance of value stream mapping is related to many factors for companies. It’s a way that can help you to visualize the steps that are crucial for a product’s production path from supplier to consumer. With a good value stream map, you’ll be able to identify areas and processes that can help you achieve better outcomes at less price, in less time, and in a safer work environment. A value stream map can be divided into several segments.

Production or Process Flow

In this segment of the value stream map, you’ll have a detailed description of production or your processes. This section will help you to have a clear image of what’s going on in the company. Any potential setbacks or other additional tasks as well should be visible here. With this segment, you’ll understand what are the main tasks or processes that happen more frequently and what are the ones that have less significance.

Information or Communication Flow

Any kind of communication that is related to the value stream should be visible in this segment. Those communications could be formal or informal but they are important no matter what and you need to put them on your map to use them in the future as well.

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Timelines and Travel Distances

Timelines mostly occupy the last part of the value stream map. Any kind of time-related data that also happens to be connected to process improvement can be found here. In this segment, some maps contain indications about the process lead time, cycle time, labor content, and travel distance as well.  In this case, travel distance can be related to people, work, or products.

Value Stream Mapping Symbols

After understanding segments that have to be included in a good value stream map, you’ll need to take a look at the symbols as well. They are standard symbols that can be used to draw up a clear map. However, you can create your own symbols as well to have a better understanding of everything. You just have to know what they represent and match them to the needs of your company.

Types of Symbols for Value Stream Mapping

You can set up processes, materials, and informational symbols. You can set up icons for customers and suppliers. Also, have symbols for continuous material flow through a department. Add data box icons as well which will be related to the data that is needed to observe the whole process, like the quantity of waste or cycle time.

Material symbols could be related to inventory icons, shipment icons, supermarket icons, etc. Informational symbols will be related to production control icons, manual info icons, electronic info icons, etc.

Preparation

The preparation process is very important. You’ll need a capable team who will do the mapping process according to all the requirements. At this stage, your team should determine essential objectives, and what’s important for your business. Then create a plan that could help you overcome potential problems.

You’ll need to gather lots of information as well about many different aspects to be as ready as possible. After determining the number of your team members and their responsibilities, go through products and services as well, measure demand, etc. Make sure that during this process you’ll identify possible obstacles and the ways of dealing with them. It will help you to get the best results.

Current State Map

In order to do a current state map, you need to gather information about the product’s production path. Basically, you have to follow your product on its path. You can pay attention to several factors, like how many people work in the process, how many tasks they can accomplish during the day, what’s the number of product variations, etc. After you go through these kinds of aspects, you are ready to create a current state map.

Future State Map

After taking care of a current state map you can start working on the future state map. By that time, you’ll have a better understanding of the areas that are dealing with overproduction. Also, you will know more about waste in the current production system. 

Planning and Implementation

After considering all the above-mentioned factors that are important for value stream mapping, you can start working on an action plan. It will help you to implement an ideal production path. Generally, after implementing a future state map you can create more improved current state maps. To get better results you follow this cycle.

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The transformation of Supply Chains with Machine Learning

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The transformation of Supply Chains with Machine Learning

Auteur n°3 – Benjamin

  • Tags Machine Learning, Supply Chains

Importance of Machine Learning in Supply Chains

All big industries have great goals, but they have to deal with challenging situations and a competitive environment as well. In this case, implementing technological solutions can resolve numerous issues. They can help you overcome competition, deal with different situations, and also help you to turn your ideas into reality.

Machine learning and AI are the solutions that can give you better results. Using machine learning in supply chain management can help you to automate numerous tasks. After that, you can have more time to redirect all of your energy to other impactful business activities and strategies.

Predictive Analytics with Machine Learning

There are several benefits that could be gained from machine learning. Machine learning models are great for demand forecasting. These models can identify important aspects regarding demand in historical data and can offer you clear predictive analytics. 

Machine learning can find different issues as well in supply chains from the beginning to avoid problems in the future.  In this case, your business will be equipped with great intelligence to deal with emerging issues.

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Automated Quality Inspections for Robust Management

In order to make sure that nothing will disrupt the supply chain lifecycle and that everything is in perfect condition you’d need to check some things several times. Your feelings about this process could be transformed with machine learning. Machine learning-enabled techniques can easily detect defects via image recognition. In this case, you’ll reduce the chances of delivering damaged goods to your customers.

Improved Visibility and Customer Experience

Machine learning techniques can be used to increase the visibility of supply chains as well. Based on that you can transform your customer experience. Machine learning can analyze historical data from different sources and discover connections between different processes that are related to supply chains. Amazon is using machine learning techniques as well to create great customer experiences for its users.

Streamlining Production Planning

Production plans sometimes can be very complex, but with the help of machine learning techniques, you can sort out these kinds of aspects as well. You’ll be able to identify the areas that lack efficiency and need more work easily. The main goals here are to reduce waste and improve quality. Machine learning can help you to create an adaptable environment for supply chains, where every issue or disruption will be dealt with immediately.

Warehouse Management

Machine learning in supply chains can solve numerous problems, like understocking or overstocking issues. It can transform your warehouse management system for the better. This type of solution is more beneficial because you can see almost every important point, which could have been missed with the human eye.

Advanced Last-Mile Delivery

Last-mile delivery is one of the most critical parts of a supply chain. It’s a journey, which products go through from the warehouse shelf to the customer’s doorstep, so it’s crucial to pay special attention to this aspect. But with machine learning, you can control this process more easily. You can explain to your customers as well where their products are right now, how long they have to wait, and update them about every little aspect.

Fraud Prevention

You can decrease the chances of fraud as well by automating several important processes, like auditing processes, doing analysis, and then evaluate what are the factors that might be dangerous or not so beneficial for you.

How to Use Machine Learning in Supply Chains?

There are numerous companies out there that have transformed their supply chains with the aid of machine learning techniques. For example, the supply chain system of Microsoft is very impressive for several reasons, out of which the most important ones happen to be related to machine learning and artificial intelligence.

Since Microsoft has a huge customer base and numerous products, they need ways that will help them to evaluate data properly, analyze it, and make sound conclusions. That’s what machine learning techniques help them with. Their supply chains get a warning very quickly as well when there seems to be a problem.

So the transformation of the supply chain for the better is more than possible with machine learning and can help you achieve exceptional results. You just need to make sure that you have clear goals and are ready for another successful transformation in your company.

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The use of artificial intelligence in Supply chains

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The use of artificial intelligence in Supply chains

Auteur n°3 – Benjamin

  • Tags Artificial Intelligence, Artificial Intelligence in Supply Chains, Supply Chain

Artificial Intelligence is a “Game Changer”

Artificial intelligence truly is a “game changer” for different industries. Since supply chain management is critical for any business and requires lots of planning and monitoring. Because of that, you’ll need additional tools to get desired results.

Your company has to keep up with new emerging standards and stay competitive in the market. Using artificial intelligence in this case will provide you with additional tools to manage and optimize your operations. You’ll be able to forecast demand, predict outcomes, optimize routes, manage inventory, monitor your security and automate different tasks.

The Future of AI in Supply Chain Management

Designing your company in a way that will make it a winner in your industry is more than an achievable goal when you are armed with the right options and necessary tools. Managing your goods and services is important in order to meet customers’ needs and stay ahead of the competition. That’s where AI can aid you.

AI could help you to work more efficiently, because it will help you to accomplish many goals and tasks, like inventory management tasks and route optimization. It can help you to monitor and manage your supply chains, get valuable insights for decision-making, and generally will help you to develop more effective supply chain operations.

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AI and Advanced Robotics in Supply Chains

Artificial intelligence can play a crucial role in advanced robotics, which in turn is very important for supply chains. Artificial intelligence and advanced robotics can be mixed up with each other to take care of order picking, packing, and transportation. It will reduce labor costs and will help you to do everything more efficiently. It’s a great solution because it gives you more security, control, and visibility.

Efficient Operations and Reduced Costs

Artificial intelligence is very useful in order to improve efficiency in your operations. It can automate numerous tasks for you, including demand forecasting, route optimization, and inventory management.

You’ll be able to do numerous tasks more easily and also improve your general performance. Another advantage here is that you’ll have reduced costs because artificial intelligence can help you reduce labor and transportation costs.

Increased Revenue and Improved Decision-Making

By improving your efficiency in different operations and reducing costs, you’ll be able to increase your revenue as well and see a bigger improvement in your company. Also, you’ll be able to understand more about new patterns and trends in your industry. AI will monitor them for you. The information that you’ll get will be more than enough to be used for strategic decision-making. It will give you the chance to set up new goals and will let you expect success with confidence.

Improved Customer Service

Using artificial intelligence in supply chains will reward you with numerous advantages. There are several factors that can have a positive impact on your image in customers’ eyes. It’s very obvious how you can benefit from AI. Since AI lets you monitor every aspect of your supply chain, and updates you about everything, you will definitely improve customer experience.

Having so much knowledge and tools that can manage and monitor everything for you will help you to interact with your customers more productively. For example, if your customers want information about certain products and when they will be delivered, you’ll check very simply where they are located now and when they will reach their final destination.

How to Use Artificial Intelligence in Supply chains

There are numerous examples in the whole world that highlight the importance of artificial intelligence for supply chains. In order to understand more about the supply chains themselves, you can read one of our articles – “What are the Different Types of Supply Chains”.

AI algorithms can analyze historical data and predict future demands. Also, it can analyze data about traffic, weather, and other factors, and determine the best ways for delivering trucks. It will help you to reduce transformation costs and improve delivery times.

It can be used to improve warehouse operations as well since you’ll be able to automate more tasks. It can monitor and analyze data to identify potential breaches in your security.

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Benefits of a Business Architecture

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Benefits of a Business Architecture

Auteur n°3 – Benjamin

  • Tags Benefits of a Business Architecture, Business Architecture

Importance of a Business Architecture

The business architecture shows how an organization is structured and how its different elements fit together. Those elements and their relationships decide what must be done to reach specific goals. It will always provide you with particular guidelines to understand how the elements need to change in order to reach the new goals of the organization.

Technology is rapidly evolving, there are numerous changes in markets as well. Surviving hyper-competitive marketplaces isn’t easy and requires great agility from companies. You have to deal with new competitive threats around the globe as well. So understanding the true benefits of business architecture is necessary for future development and success.

How Your Organization Can Use a Business Architecture?

Business architecture can help you in numerous ways. It can totally transform your customer experience for the better. You could benefit from it while dealing with mergers and acquisitions (M&A) as well. You’ll be able to define a new market or start a new company. You’ll be able to introduce your product in the market more easily and profitably. You can also take care of business units and make many beneficial changes there.

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Bridge Between Strategy and Execution

Business architecture is like a bridge between your company’s strategy and execution. Strategies and operational demands are related to changes. In order to do everything successfully the ideas have to be translated into actionable steps, that can be implemented across the enterprise.

Business architecture is directly tied to the organization’s strategy, planning, and software development processes. Basically, strategy drives changes to the architecture, and business architecture translates those strategies for execution.

Focused and Aligned Strategy

A focused and aligned strategy is related to various external and internal elements of an organization. They have to be arranged in a specific way to support the achievement of your long-term goals. Your models should meet your business needs, so you’ll need to consider the aspects of business architecture here to do everything correctly.

Improved Decision-Making Strategy

Business architecture is a great way to improve your decision-making process. It can help you define more important and unique features of your organization. You’ll know what to do about your business units. You will get a pure business view of what you can achieve with or without technologies, and you’ll be able to evaluate everything without any organizational bias. You’ll be able to make better decisions based on every aspect and information that business architecture can provide you with. You’ll manage your investments, costs, risks, and many other aspects much better.

Increased Operational Efficiency and Growth

Business architecture is a solution for complex systems that organizations use. The complexity of specific systems might create numerous issues later. Besides taking care of this issue, it can help you to manage systems with better tools.

Agility in Business and IT Execution

Business architecture can also deal with IT processes and infrastructure more successfully, which is always connected to great results. Your IT teams will benefit a lot from business architecture because it can enable the optimization of IT tools and processes. You’ll have higher agility as well, so you’ll be able to understand and respond to changes in the industry faster.

Strong Security

With the help of business architecture, you can be sure of your security. It can help you to protect your data by strengthening your cyber security. The online world is expanding and evolving so you have to ensure that you’ll be safe and protected.

How to Use a Business Architecture?

Business architecture has numerous benefits that can be used to develop many aspects of your company. For example, if a business architecture team is working on the development of your business units, they will implement templates that will help each unit to develop a strategy and work to improve their quality.

Business architecture can be used to understand more about capability management as well. Also, you’ll be able to transform successfully, reduce costs and improve quality. For example, transforming a software company into a cloud services model would be easier with a business architecture.

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How to do a Value Chain Analysis?

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How to do a Value Chain Analysis?

Auteur n°3 – Benjamin

  • Tags Value Chain Analysis

Importance of Value Chain Analysis

The importance of value chain analysis is great for businesses for a couple of reasons. It’s a tool that can help you study every process that your business is using. It ensures that your products will be delivered to your customers as effortlessly as possible.

Value chain analysis turns you into a more competitive, valuable, and efficient business. The change that can occur after this process will help you to create better products and deliver better services. Also, it will help you to create connections with other companies and more customers as well.

Identify All Value Chain Activities

In order to do a good value chain analysis, first of all, you need to identify all the factors that play any kind of role in product creation. Start with more important factors, then look through secondary factors as well.

Don’t be satisfied with simple answers and understand everything more deeply. You need to know what materials are used for your product, how many people work on that, how much time they need, etc.

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Calculate the Cost of Each Value Chain Activity

The next step is about figuring out how much money you spend on running the business. Having accurate information about this topic will help you understand how you are spending your money and how many benefits you get from this process as an end result. You’ll see which parts of your company require most of your funds.

Based on this information, you’ll know where you need to invest your money and how you can grow your business. You might reduce rent costs, and staff costs, or decide to promote more unique items or add new aspects to your products.

See What Your Customers Perceive as Value

You need to know what your customers need or want from you. In order to add more value to your products or services and become more competitive in the market, find what your customers perceive as value.

Most of the time customers don’t evaluate products objectively, because lots of them are influenced by society and their general environment. That’s why you have to understand their pain points and their exact needs. You can do online surveys to gather information, or work with focus groups.

Review Your Competitors’ Value Chains

In order to evaluate your competitors’ value chains you can consider several main points. Compare your process structure and operations to your competitors. Compare how you carry out different tasks. You can also review your high-level business strategies alongside your competitors. See what seems to work well, and what does not, and think about how you could use it. Check organic traffic, social media platforms, reviews, ratings, and every other aspect that will help you determine your competitors’ value chains.

Decide on a Competitive Advantage

At this point, you’ll have a clearer understanding of important topics, like your internal costs and your customers’ value. It’s time to decide what you are going to follow, cost advantage or differentiation.

You have to know what you are trying to achieve. For example, if your goal is to increase your income, cost advantage will be a more helpful option for you. But, if you want to become the market leader, differentiation is a better option.

If You Choose Cost Advantage

If you choose cost advantage you need to find ways, that will help you to optimize spending. To increase profitability, you might have to cut down production costs or cut the cost of different support activities. For example, you might replace certain human activities with workflow automation, or try to find cheaper delivery services.

If You Choose Differentiation

Differentiation involves adding value by offering a high-quality product that sets you apart from other competitors. A successful differentiation strategy requires good research and can help you to gain a competitive advantage. It will help you to set a premium price for your products or services.

You can use both of those options as well together to maximize impact. But while doing value chain analysis, you have to consider all the aspects related to them. It’s one of the most powerful processes your business can undertake, in order to reach new heights in the industry.

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How to use Michael Porter’s 5 forces to your advantage?

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How to use Michael Porter’s 5 forces to your advantage?

Auteur n°3 – Benjamin

  • Tags Michael Porter's 5 Forces

Importance of Five Competitive Forces

Michael Porter’s five forces is a model that identifies and analyzes five competitive forces that are crucial for industries. They help you to identify your strengths and weaknesses. You’ll have a chance to analyze the competitive environment where your company is operating and generally use it as a very important tool.

These forces are related to the number and power that your competitors have and will help you analyze the power of new businesses in the market. Also, you’ll define more aspects about your suppliers, and customers which will help you to find ways for increasing your competitive advantages.

Understanding Michael Porter’s 5 Forces

Michael Porter’s 5 forces is a business analysis model which explains why and how different companies have different levels of profitability. Based on that, you can analyze your industry structure and corporate strategy as well. Generally, you’ll understand how your company can become more competitive, attractive, and profitable.

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Competition in the Industry

Competition is the first of the five forces. If the company has lots of competitors and its products and services don’t differ from others, the company will have less power. In this case, companies need to show their suppliers or customers that they have better products or services, or that they have lower prices. They need to show a wider audience just what makes them different. When the competition is low, the company can set up its own rules and set up higher prices as well.

The potential of New Entrants into an Industry

New entrants in the market could have a great influence on the company’s power. If the new company requires a small amount of time and money to establish its place in the industry, it’s not a good sign for the old ones. Basically, you are considering here how easy or difficult it is to enter a market when it comes to new brands.

New entrants could bring different issues for the company. When you are working on a marketing strategy, or you are making research to determine how to develop your company, consider all the companies in your market and their abilities, and the possibility of new businesses emerging as well.

Power of Suppliers

The next one from Michael Porter’s five forces is the power of suppliers. No matter what kind of business you have, online or offline, you would have a supplier for sure. Nowadays, businesses are reliant on other businesses while working on their operations.

But your company should work on several aspects to make sure that you won’t be overly dependent on suppliers. First of all, determine the number of suppliers in the market. Make sure that you’ll have more backup suppliers because it can be a great advantage for your company. Also, find out how much it would cost your company to change suppliers.

Power of Customers

Customers could have great power over companies and generally every important aspect of their industries. Their power could be changed with time or because of the company’s competitive strategy.

It’s important to know just how many customers a company has, how significant are they, and what the company needs to get new customers. When the company has a smaller client base, customers have more power to lower prices. While companies that have a bigger client base, can increase prices with fewer issues and can be more profitable.

Threat of Substitutes

The last of the five forces are related to the threat of substitutes. Everything that could be used in the place of a company’s products or services is already a great threat. Companies who have more unique products or services will be able to increase prices freely and work on more favorable terms. But when similar products can be found elsewhere as well, it could make the company lower prices to not lose customers.

The Framework of Porter’s Five Forces

This framework will help you to evaluate your competitive environment. It can help you analyze where your company is standing now and how you can move forward. When you’ll understand these forces and use them in your industry, you’ll be able to improve your business strategies and generate higher earnings as well.

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Measure your Customer Experience with your Net Promoter Score

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Measure your Customer Experience with your Net Promoter Score

Auteur n°3 – Benjamin

  • Tags Customer Experience, Net Promoter Score, NPS

Why Use NPS for Measuring Customer Experience?

Having proper feedback is crucial for any company. Your customers are the ones who use your products and services and no matter how much knowledge you have about them, they’ll always have something valuable to tell you.

Net promoter score helps you understand the whole scenario which is related to your customers and their experiences with your brand. You’ll understand what are your strengths and what you need to improve. Also, you can identify who are more loyal customers and create connections with them.

Net Promoter Score as Foundational Business Metric

Net promoter score plays a crucial part for any company in regards to discovering the amount of loyalty and satisfaction that customers feel towards them. NPS can give you great information based on one single question about the chances of them recommending you to others. What your company could gain is a great insight into customer sentiments that will help you to plan your future operations.

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Transactional VS Relational NPS

Relational NPS surveys are done on a regular basis. For example, quarterly or annually. It helps you to understand generally how your customers feel about you and what’s their experience in your company.

Transactional NPS surveys are done after customers interact with your company. For example, when they are purchasing something from you or receive a support call from you. It’s generally better to use both types of NPS surveys in order to understand more about your customer experience.

Distributing Net Promoter Score Survey

Net promoter score surveys should be present on the channels that are more frequently used by customers. For example, if they use your mobile app more frequently you’ll distribute your survey there, but if they use your webpage more often your survey will be done from there. Surveys can be done in many different ways, via SMS messages and QR codes as well.

However, choose the platform for the survey very carefully, because in some cases sending emails rather than putting the survey on the webpage could be a better option. For example, customers might score based on their experience on the webpage itself and don’t give you enough idea about their experience with the brand. In this case, emails would be more helpful.

Capturing Operational and Experiential Data

First of all, when you want to measure customer experience with a net promoter score, you have to go through customers. Choose the ones that had a more recent experience with your company. Generally, they are more willing to leave feedback.

Gathering up operational data and experiential data from your customers will be great, but you need to analyze the whole information as well. This data will clarify more aspects about your customers.

Personalize the Survey

Without surveys, you won’t be able to understand what’s going on. However, there is a high chance that many people won’t participate. Some might not even open up surveys to at least check what they are about.

So provide them with personalized surveys. For example, include their names or the product name that they purchased recently in the subject line of your survey email. This way you are increasing the chances of them responding to you and also, you are creating a connection with them.

Tie NPS to Other KPIs

Besides surveys and analyzing responses that you gained, you have to ensure that you’ll use additional metrics as well. A net promoter score is a valuable tool for your company, but if there are some other aspects that you are interested in, you can read one of our articles as well – “How to measure Customer Loyalty” and also understand “Which Marketing Strategies Work for Loyal Customers”.

Customer Experience is a Moving Target

You should know exactly what your NPS is and how well your company is performing regarding customer experience. But this target is always moving and so it’s hard to not miss the mark.

That’s why it’s important to determine the NPS strategy that will work best for your company and also, back it up with frequent qualitative research. It will help you determine exactly what your customers think and how can you make your products or services satisfy them beyond their expectations.

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How to use the Strategic Business Unit in your marketing strategies?

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How to use the Strategic Business Unit in your marketing strategies?

Auteur n°3 – Benjamin

  • Tags Strategic Business Unit

Importance of Strategic Business Unit

The strategic business unit (SBU) is an often talked about topic, especially when it comes to strategic management. It is actively adopted by numerous companies in order to grow and produce more products.

A strategic business unit represents an independent, specialized department or a sub-unit that is focused on a given objective. It has its own mission which could be very different from the parent organization.

The Main Focus of the Strategic Business Unit

The strategic business unit is mostly concentrated on long-term business goals. SBU manufactures and delivers its own products and makes all the decisions related to them, while the head office is tracking income and profits.

For example, Panasonic and Coca-Cola are great examples of SBU. Panasonic has separate divisions to manage different products. While Coca-Cola shows very effectively how multiple subsidiary products that exist in the same industry can be managed.

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Characteristics of Strategic Business Units

A strategic business unit that the organization will adopt should be well suited for the strengths and benefits of the company and should be able to use all the opportunities that will be in the industry. Also, each SBU has specific products and services.

A good strategic business unit will be a separate unit of business or a group of businesses, that can plan everything independently. They are dealing with all the responsibilities related to their environment, like profits, strategic planning, and general performance.

Types of Strategic Business Units

There are several different types of strategic business units, the first one is Stars. Stars are SBUs that are dominant players in the market and are characterized by high growth and market share. Cash Cows are the kind of SBUs that grow more slowly.

Sometimes organizations have difficulty deciding where they should invest their money, time, and resources. In this case, they have to decide finally, if they are going to invest in a specific business or just get rid of it, that is what Question Marks are about.

While Dogs are underachievers, they have a low market share, and their profits most of the time are only enough for their unit. In any case, most companies don’t invest in these kinds of units and prefer to search for more promising options.

How SBU Can Help you with Marketing Strategy

Marketing strategies are all about achieving the company’s goals, understanding customers, and creating a distinct competitive advantage. It is essential to understand the needs of organizations and what they need for improvement.

Information that you can get from here will help you to understand what kind of business strategic unit you need, how you can implement this unit in your organization, and how you can benefit from it. With a suitable strategic business unit, you can be more profitable and have numerous advantages. You can become more successful and visible on the market.

Factors That You Have to Consider

The importance of SBU is great for your marketing strategy, but there are several factors that you have to consider in order to take successful steps in the future. First of all, look through your industry and determine carefully what kind of products or services should be and should not be related to your strategic business unit. Make favorable choices.

Define generally how to choose SBU and understand its potential. Look through current SBU and try to understand more about potential SBUs. Define what kind of business models you would implement for your SBUs and how you are going to monitor those business models. 

How to Set up a Strategic Business Unit

When you are setting up a strategic business unit, you need to understand more about specific requirements. The very first one that you have to consider is adapting the organizational structure. You have to pay specific attention to this aspect when planning what you want to do for the business unit. Also, understand how your company could generally react to those changes.

You should carefully choose the managing team as well who will have a great understanding of your strategic business unit. You have to adjust the corporate culture as well. Generally, try to make your employees feel from the beginning that they are involved in a very important process and they are being appreciated by you for their effort.

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How much is a good Net Promoter Score?

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How much is a good Net Promoter Score?

Auteur n°3 – Benjamin

  • Tags Net Promoter Score, NPS

Importance of Net Promoter Score for Businesses

Businesses stand on happy and satisfied customers so finding ways to measure their satisfaction is crucial. That’s exactly how net promoter score (NPS) can help you. With the information that net promoter score can give you, you can figure out what you need to improve, and how you can maintain high standards.

Benefits of Using NPS for Measuring Customer Loyalty

Numerous other options can help you to measure customer loyalty, but NPS is very frequently used for a couple of reasons. It’s a very straightforward metric that is very simple to use and understand. NPS makes it possible to accurately measure customer loyalty and satisfaction.

Also, NPS provides you with a full picture of how customer generally views your brand, and it’s related to their whole experience and not just one occasion. You can also understand how well you are performing against your competitors. It’s an easy, cost-effective solution that can give you good direction and help you understand what you need to change or improve.

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Interpretation of the NPS Scores

NPS scores can be interpreted differently based on different aspects, but generally, some numbers give you a very clear indication of what’s going on. If the net promoter score is below 0, it means that you have to sort out lots of issues in your industry. When it’s between 0-30 it means that you are in a good position but there’s still room for improvement.

If the score is above 30, it’s a good indication that you have mostly happier customers than unhappy ones and you are performing well. When the NPS score is above 70, it means that you have numerous happy customers and they are more than happy to be your brand’s ambassadors.

NPS for Different Industries

A good net promoter score is different for different industries. For example, companies that are related to the consultancy sector have higher than average NPS, because they have longer and more frequent interactions with their customers.

But when it comes to health care, or anything medicine related it could be lower, because of the mindset that the patients could have, it’s just not a pleasant experience for many to visit doctors and that’s why. So first of all, you have to understand what’s the average net promoter score in your industry and then identify the actions that you’ll need to improve customer experience.

Compare NPS Scores Within a Region

NPS scores are different for different industries but it’s also important to see what’s happening in certain geographical areas as well. Cultural differences decide a lot for the NPS score. For example, to speak generally Americans more frequently rate companies higher, while there’s a more different situation in Europe.

If a satisfied American customer is willing to score you with 10, a European customer will give you 8. While in Japan it’s simply poor etiquette to rate any business too high or too low, no matter how well they are performing.

NPS for Famous Brands

Competing against the net promoter score of famous brands would be interesting, but it’s important to not lose focus on your industry and first make sure that you’ll perform better than your competitors whom you are dealing with more frequently. Also, some of the famous brands have a higher net promoter score because they have a well-known company name or the niche market that they are operating in and it might not be related to customer satisfaction at all. Generally, the numbers are high here.

NPS for B2C Businesses

Net promoter scores for B2C businesses always highlight important factors related to customer satisfaction. Those types of businesses always have a bigger customer base, so can get more valuable information as well. The average net promoter score for B2C ranges between 24 and 57. 47 is already a good score. But you have to always follow industry standards and news because those results always change each year.

NPS for SaaS

A good NPS score for SaaS (Software as a Service) is approximately more than 31. A good range varies between 31 and 41, but those numbers change every year. Scoring above 30 would be good, but being close to 40 or overcoming that number would mean that your company can be distinguished from many others.

Many other industries have completely different scores, so before you come up with conclusions regarding your customer loyalty and satisfaction, look through your industry and geographical area one more time.

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For more similar articles, make sure to scroll through our Publications on Edana. Your Swiss Digital Agency is ready to provide you with Expert-Level assistance built on customer loyalty, progressive ideas, and dedication. Our expertise includes Marketing Strategy and Plan, and many more.

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Why does your company need Organizational Readiness Assessment?

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Why does your company need Organizational Readiness Assessment?

Auteur n°3 – Benjamin

  • Tags Organizational Readiness Assessment

Importance of Organizational Readiness Assessment

Organizational readiness is all about the relationship between people, processes, systems, and performance measurement. Organizations should be ready for changes and new challenges because they can transform you for the better. But before you move forward organizational readiness assessment will help you to determine if your company has enough resources for specific projects or goals.

What You Can Discover from Organizational Readiness Assessment

After the organizational readiness assessment, you are more sure about your success and know that you are ready to take the next steps. During this process, you’ll mostly assess your project goals and objectives, your general expectations and concerns, and what’s your ability to adapt to the change.

Also, you’ll be able to find ways that could help you to minimize the chances of failure for your project, in order to just avoid unnecessary surprises. You’ll assess project governance and decision-making process, and any other aspects that could be critical in your unique situation.

Use Qualitative and Quantitative Methods to Collect Data

Both of those methods will help you to gather accurate data which is necessary for your organization. You can gather qualitative data based on interviews related to specific topics. For example, about the understanding of project importance, understanding the changes that will be in the future, etc.

While the quantitative method will help you to gather more information via surveys. You’ll have a better understanding of how employees feel about changes and the company generally. After analyzing this data, you can understand which departments need more support and what are the key risks that you might have to deal with.

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Readiness Can Help You to Get Familiar with the Audit Process

An audit is a very important process for the company, which can help you determine operational inefficiencies, help you review your systems, and generally provide you with objective insight.

The organizational readiness assessment is done months before the audit. This combo can give a company very good information about numerous crucial aspects. In order to have a better understanding of this topic, you can also read one of our articles – “How to do an Audit of your Company”.

It’s an optional step, but can help you to learn more about the standards that you are aiming for and can help you to get everyone in your organization on the same page.

Readiness Assessments Help You Address Potential Problems

First of all, you’ll have a chance to discover and address any potential issues before they become a problem for you and will influence any of your projects. You’ll be able to see potential gaps that need to be immediately addressed. You’ll gain information that will help you to improve any aspects that don’t seem beneficial for you and generally will help you to have better control over every aspect of your company.

Readiness Assessments Help You Address Changes with Employees

In order to change everything successfully in your company you’ll need to update your employees about everything and make sure that they are ready for those changes and have enough capabilities to get involved in important processes. Your employees will be able to have a better understanding of data flow as well and generally will feel more valued if you engage them in the organizational readiness assessment process.

What It Can do for Your Business?

A good readiness assessment is related to good organizational programs and project readiness. It can help you to take more innovative steps, it can help to completely restrict your company and achieve better results with larger and more complicated projects.

You will be able to pinpoint company resources that are available and valuable for you, will get a better understanding of the character of your team members since they are so important for changes in your business, and will know more about the areas of your business which need more attention and improvement.

How to Use It

After gathering information about your organization, about your strengths and weakness, you’ll be more ready for changes. You’ll have numerous advantages that will be very beneficial for you in order to make necessary changes for improvement.

You’ll have to evaluate if you are ready for certain projects and changes, like if you can meet specific requirements. It will be easier for you because of the information that you got from the organizational readiness assessment.

What We Offer

For more similar articles, make sure to scroll through our Publications on Edana. Your Swiss Digital Agency is ready to provide you with Expert-Level assistance built on customer loyalty, progressive ideas, and dedication. Our expertise includes Marketing Strategy and Plan, and many more.