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Net Promoter Community > European Conference Blog 2008 > Tags > aggreko
 

European Conference Blog 2008

2 Posts tagged with the aggreko tag

Simon Lyons, the global head of marketing and communication at Aggreko, Plc doesn't care about any of the occasional criticism of the NPS metric by academics. "NPS is directionally-correct, and it's so simple! Nothing else is so useful for focusing the entire organization on the customer!" During his presentation today, Simon showed a disguised example from Aggreko's actual results showing a tight correlation between NPS performance and revenue growth.


 

Simon introduced a number of interesting frameworks during his talk. One simple and thought-provoking framework is illustrated below:

 

 

 

 

 

Simon_matrix_1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simon accurately stresses the fundamental difference between looking at current financial results vs. NPS results: financial results tell you how the company did yesterday/today, while NPS tells you how well the company will be doing tomorrow. Financial results are lagging indicators, while NPS is a leading indicator.


Apparently, the Aggreko board "gets it" as, according to Simon, "the white-hot heat of the board is focused on any executive in the organization whose unit doesn't do well on the NPS score."

 

For more details, read about their Net Promoter program with Satmetrix here: http://www.satmetrix.com/casestudies/aggreko.htm

 

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SimonlyonsAnd lastly in the B2B track we heard from Simon Lyons, Global head of Marketing & Communications at Aggreko. He clearly demonstrated his mastery of NPS and driving change in his organization.


 

Simon described being motivated by the feeling of lacking meaningful data in the boardroom. While the financial team brought in their data, the marketing team was looking in the rear view mirror and not driven by the voice of the customer. He found Fred's HBR article (The One Number You Need to Grow) a defining moment, embraced the simplicity of NPS, and rallied the organization around it.


 

Internal selling required he break the silos and move marketing to the bleeding edge. Others sensed a shift in power and skepticism in the data. Simon pushed on and embarked on a NPS journey.

 

They developed a 10-question survey with the following components:


 

  • Would you recommend?
  • 4 questions to understand the drivers of loyalty
  • Value for money
  • Experience variance on expectation (open)
  • Nominate one area of improvement (open)

 

The benefits were clear. Real-time data gave them the opportunity to respond immediately. Through account level engagement they were able to justify the system in one deal uncovered by the sales rep due to follow-up from the survey process.


 

Simon states, "NPS has changed our business". It's standardized, customer-defined and fact-based. It has given increased visibility into the relative value of loyalty drivers and recalibrated operational efficiency at the customer interface.


 

Not unlike other speakers, keys to success included CEO-driven, integration into the business, and executive buy-in as indicator of growth. In fact today, every area manager at Aggreko knows his or her score and loyalty data is included in the board package as a key indicator of the health of the business. (Blog master note: this is a similar strategy noted in Andy Sernovitz's blog on Experian's best practices.)


 

Simon took us on a journey of evaluating the financial health of the business through the loyalty lens. As Simon shared several charts and graphs used throughout his organization, it strikes me that we are creating a framework for evaluating the health of the business similar to the traditional financial metrics such as the P & L and balance sheet. We have a real opportunity to shift the focus from current state analysis to predictive analysis of the future business.

 


Could this be a sign of things to come?

 

For more details, read about their Net Promoter program with Satmetrix here: http://www.satmetrix.com/casestudies/aggreko.htm

 

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