Comprehensive Guide to NPS, Cultural Dimensions, and Global Business Strategies

NPS Definition

Net Promoter Score.

NPS Calculation Formula

% Promoters - % Detractors.

NPS Question

How likely is it that you'd recommend this company to a friend?

Passive Customer Score

A score of 7-8.

Promoter Customer Score

A score of 9-10.

Detractor Customer Score

A score of 0-6.

Ecology (Culture)

The physical surroundings and human interaction with the physical environment.

Social Structure

Customs, rituals, and laws used to maintain an orderly social life.

Evident Culture

Observable aspects like customs, language, and behaviors.

Deep Culture

Underlying aspects like values, views of the world, and beliefs.

Hofstede's Dimensions

Individualism/Collectivism, Power Distance, Uncertainty Avoidance, and Masculinity/Femininity.

Power Distance

The response to inequalities of power impacting employee-boss relationships.

Market Penetration

Selling existing products to existing markets (e.g., encouraging more frequent use).

Product Expansion

Selling new products to existing markets.

Market Expansion

Selling current products to someone new/new markets.

Diversification

Selling new products to new markets.

Customer Centricity

Placing the customer at the forefront of all decisions and actions.

Customer Centricity Goal

Creating value for customers to grow long-term profits.

Customer Centricity (What it is NOT)

It does NOT mean giving customers everything they ask for.

5 Elements of Customer Centricity

Culture, Competences, Structure, Metrics & Incentives, and Human Capital.

Standardization Benefits

Economies of scale, lower marketing costs, and consistency of image.

Customization Benefits

Tailored names/advertising and excellent local image.

Standardization vs. Customization (Scale)

Customization may provide many local benefits, but it does NOT provide economies of scale.

Global Strategy Motivation

Obtaining scale economies, global innovation, and access to new markets.

Global Strategy Risk

Failing to correctly identify a competitive threat in a new market.

Consumer Dissatisfaction Indicators

Switching behavior, negative word-of-mouth, and complaints.

Satisfaction Measures

Satisfaction surveys, repeat purchases, and NPS.

Lurie & Thomas Growth Driver (New Use)

Generating new uses by existing customers (e.g., Arm & Hammer for teeth whitening).

Market Orientation

Part of customer-centric competencies required to fully understand customer needs.

Global Strategy Definition

Does NOT treat each country independently; focuses on shared approaches.

Five Growth Drivers (Lurie and Thomas)

Retain uses by existing customers, Stimulate current uses with existing customers, Attract new-to-category customers, Generate new uses by existing customers, Attract new-to-you customers