In order to organize their operations and guide them to their objectives, companies often choose a management model. But watch out: management model should not be confused with strategy.
If the strategy has to do with defining the future, the management model is the way in which that future is reached.
The management model that we recommend using in online stores is that of total quality and continuous improvement. Let’s see what this is about.
Total quality and continuous improvement
The model aims to generate a chain reaction: quality, productivity, cost reduction, market conquest.
Quality
Quality is given by the set of attributes of a product that confer the aptitude to satisfy the needs of the consumer. The product that a customer expects to receive in an online store is usually made up of the following attributes:
If the person does not experience satisfaction in any of these characteristics or attributes, then the quality will worsen. ANDThis means a bad consumer experience.
We call the voice of the client to the representation of those demands through specific expressions and keywords.
Productivity
The voice of the customer It can be contrasted with the company’s internal data to evaluate the performance of your processes. These internal data are represented with indicators and make up what we can call the voice of the process.
For example, if the voice of the customer tells you regarding logistics: “I need the fastest delivery”, one of the indicators that you have to look at in the process voice will be the “Average days of delivery”. Perhaps the processes that interfere with this indicator are the production of the good, order processing, etc.
If you focus on improving your processes related to the main attributes for quality, you will improve your productivity and customer satisfaction.
Costs reduction
So, the model ensures that By focusing on product quality, in its broadest sense, productivity will be improved and costs reduced..
This can be seen in the following example: if the product was not what the customer expected or arrives defective, it will be produced what in ecommerce is known as reverse logistics. It is the work that has to do with attending the claim and making the return, causing expenses in administration and logistics.
If management is focused on total quality, these events will occur less frequently and costs will go down.
market conquest
If you improve quality, the conquest of the market will come naturally.
An excellent user shopping experience can make them buy from you again and surely recommend your brand.
In turn, cost reduction will give you the possibility of lowering the price, occupying market segments that were controlled by your competitors.
Although we mentioned that it is given by the attributes of a product, quality is found throughout the organization and is considered a cultural change focused on reducing waste and achieving total quality.
And the continuous improvement?
Continuous improvement is a process approach, an attitude that involves the entire organization and that it should be promoted by the owners of the brand.
Fostering teamwork, change and permanent learning are the keys to continuous improvement.
It is often applied a lot in , where we find the following stages that are constantly repeated:
- To plan: for example, increase sales by 30%.
- Implement: through a campaign in .
- To size: what about ads that have a click through rate (or CTR – number of clicks that a link obtains with respect to its number of impressions) of 15% (less than expected)?
- Correct: Maybe it can be fixed by adding negative keywords.
Later you have to plan, implement, measure and correct again and again in this intention to make processes more efficient and constantly learn from the environment.
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