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Net Promoter Community > New York Conference Blog 2007 > 2007 > February > 01
 
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John Williams -- It's So Simple!

Posted by johnwilliams on Feb 1, 2007 9:50:04 AM

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:

NPS_and_profit_margin.jpg

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.”

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