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Net Promoter Community > European Conference Blog 2007 > Authors > SuhailK
 

European Conference Blog 2007

4 Posts authored by: SuhailK

The second session was by Satmetrix's James Young, Managing Consulting - Europe. James discussed goal setting and best practices for actioning business improvement by setting appropriate goals. I think this is a very important topic, and one that I've heard much discussion and debate, especially when wanting to tie compensation to these targets.

 

James believes that having a step-by-step process approach for setting up appropriate goals is critical.  He reiterated that the process should be based on the foundation that had been raised by previous Satmetrix presenters, which contains the 4 main pillars: Executive Foundation, Organizational Alignment, System Infrastructure, and Process Integration.

 

The specific process James reviewed was:

 

  • Set Strategic Direction
  • Capture Customer Experiences
  • Target Value Drivers and Action
  • Leverage Functional Processes
  • Balance Targets and Align Strategy

 

 

James also noted the importance of directly linking goals to drivers of loyalty using statistical techniques. He showed a cascading approach, and used a pyramid diagram to convey the details. At the top of the pyramid was Net Promoter Score (NPS), then it moved to functional level goals, and then event or transactional goals at the bottom. The point I took away from this is that one metric is not enough to truly achieve your objectives. James points out that in order to make improvements across the business you must set goals that are relevant in the various operations in the business. This includes setting goals all the way down to the front line employees. Setting goals on solely on overall aggregated NPS is just not enough.

 

James also talked about how important it is to continue to reevaluate your goals over time. Targets will move. While you may take great care to set initial goals, often times business conditions and priorities change and as a result your goals should reflect these changes. This will more easily allow you to track performance against these goals as they relate to corresponding financial performance. James suggested that setting a periodic review process is an effective way to achieve this.

 

Goal setting is a complex undertaking, but James's structure seems to address the key issues to consider. I really enjoyed this session.

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The first presentation is by Dr. Vince Nowinski, the Principal Methodologist at Satmetrix (co-developer of Net Promoter). He is the guy who works to maintain sound methodological standards with Satmetrix and based on my observations, it appears he is succeeding. His presentation today is entitled "Measuring What Matters - Capturing the Voice of Your Most Important Customers." Vince's approach to the discussion is to cover the "who," "what," and "when," as it relates to sampling strategies, response rates and general survey design. This is a hotly debated subject and has brought much discussion thus far at the conference.

 

One of the underlying messages from Vince was that getting 'statistical representativeness' of your sample may not be the ultimate goal, especially when considering the differences between B2B versus B2C businesses models. The main takeaway I heard was that when in a B2B environment, particularly when focusing on an enterprise account structure, a census approach is preferred when as compared to a more traditional sampling methodology.  Vince was recommending that you identify your key decision makers and with assistance from your field sales organization, obtain survey responses from 100% of these folks if possible.

 

Vince then discussed the considerations around survey length, and raised the debate between survey design using "the one number..." versus the more traditional approach.  Data was shown around survey length and response rates, and I was very surprised that the difference in response rates between a very short survey and the longer survey was actually very small. Vince's point was that response rates were influenced more strongly by ensuring that the contacts were the most relevant in determining your relationship and the possibility of future business.

 

One last point that I took from Vince's presentation was how each of these 2 survey design philosophies could the impact the ability to determine key drivers. My key takeaway is that using the shorter survey, with perhaps the Recommend question and 1 open ended question, the ability to identify accurate drivers of loyalty becomes difficult. This is because the short survey provides you very few options for analysis.  The only tool you have available is to dive into the verbatim comments and determine qualitatively the key drivers. Using a more in-depth survey design will allow you to use statistical techniques to determine drivers, which to me seems like a more sound approach.

 

I will be interesting to see how this subject evolves over time as we begin seeing some long-standing practices being challenged.

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My second session was another enjoyable interactive presentation delivered by Steve Dee from Swiss Reinsurance Company (Swiss Re). The session, which included everything from teaching the audience a magic trick (pulling a rabbit out of a hat, literally, ok, albeit a baby stuffed plush rabbit) to covering the Net Promoter program efforts at Swiss Re, was full of insightful data suggestions that can help companies who are just starting the NP journey.

 

Steve came to Swiss Re from GE where he had successfully implemented a Net Promoter program. The challenge at Swiss Re was what Steve referred to as a "Client Focus Dilemma": how to drive client retention and increase wallet share while defining client centric measurement metrics.

 

Using the classic Net Promoter question as a foundation ("How likely is it that you would recommend Company X to a colleague or friend"), Steve created a program that has been able to deliver data that has already driven positive change within Swiss Re.

 

Swiss Re took a unique approach and asked its customers if they would be interested in spending more survey time, thus providing Swiss Re with more insights that could drive positive customer-centric change. Based on the customer agreement, Swiss Re created a database of customers who were willing to be surveyed and drove the process on an annual basis.

 

Communication, communication, communication. Some of the best practices that Swiss Re uses to drive organizational change include the NPS Care package: a packet of information targeted at the various functional audiences throughout Swiss Re that includes:

 

  • NPS Overview
  • Deployment Process
  • Deployment Plan
  • Dashboard Example
  • Results Example
  • FAQs
  • Copy of the 2003 HBR article
  • Other success stories

 

Steve shared that success came because Swiss Re followed a plan that kept the process simple, the focus clear, attained leadership commitment, regular communication and took a phased program approach, using a Pilot site to work out the bugs.

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As we enter the home stretch of Day One of the EMEA Net Promoter Conference, I cannot but be impressed with the amount of best practices that have already been shared by some very distinguished speakers. And this trend continues well into the afternoon as I have the pleasure of covering two speakers for you who will be laying out some key concepts that are the foundations for running a fine tuned Net Promoter program.

 

aggreko picture.jpg

The speaker I am covering first is Simon Lyons, Global Head of Marketing and Communications for Aggreko, a generators rental business targeting companies, individuals and countries as well as providing mission critical power supply to disaster hit areas and regions impacted by war. They are a global company with a 1.5 billion market cap.

 

Simon talked about how things were when he joined 3 years ago. There was no collation of customer issues, no structured issue-handling mechanism and no real voice of the customer coming in to Aggreko. As Aggreko moved toward addressing these challenges, the inflection point came through a Harvard Business Review article that showcased similar business models to theirs where NPS was linked to revenue.

 

One of Simon's immediate actions was to move marketing closer to operational business. He rolled out the Net Promoter program using a phased approach, all the while addressing the challenges that had been the impetus for Net Promoter at Aggreko.

 

Three key points:

 

  1. Get the support of your CEO
  2. Keep the data simple
  3. Make sure that the data can be used to produce useful insights

 

Simon made sure that the data collected through the Net Promoter surveys was made available to all Aggreko employees immediately. And I mean immediately! The responses go out to the groups who are required to take action and these groups or individuals are given forty-eight hours to connect with the surveyed. If they miss, their superiors are notified and are put on a similar forty-eight hour clock. Talk about intense commitment to follow-up!

 

Aggreko has seen a change in the way their customers have responded, and internally, they have found that the benefits of having NPS as a program brings the focus back on:

 

  • Credible data for performance metrics
  • Real time metrics that the company can act upon
  • True operational transparency

 

All these elements combine to illustrate a facts-based picture that allows Aggreko to get closer to what truly matters to its customers.

 

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