Finding the cause of declining NPS

Task

To understand what factors influence the level of customer loyalty and satisfaction; to stop the fall of NPS or reduce its rate.

Client

Russian manufacturer of electrical equipment, a niche leader. The company has been operating on the electrical equipment market for 30 years, with several branches in Russia and the CIS.

Date

July 2022.

Result

We found the reasons for the decrease in customer loyalty, developed recommendations for the Customer, currently in the process of implementation.

Type of Project

Research, Customer Experience

What we did

  • Analyzed sales dynamics for the period 2016-2022.
  • Calculated the ratio of permanent and new customers in the dynamics, calculated the growth rate.
  • Calculated client base indicators: growth, outflow, return, retention rate, average bill, RPR, ACL and LTV.
  • Analyzed clients in terms of regions and target audience segments.
  • Calculated BDI (brand penetration ratio) and CDI (industry potential in the region) for each federal district of the Russian Federation and for each segment (industry) of CA.
  • Analyzed export sales.
  • Measured the average terms of manufacturing and delivery of products in dynamics.
  • Calculated correlation coefficients for all found indicators in pairs and with the NPS index.
  • Highlighted the key correlating indicators and analyzed these correlations, tested our and the Customer's hypotheses.
  • Developed the list of recommendations to stop the decline of the NPS.

Comment of the Project Manager

In this case we faced an emergency situation - the customer satisfaction index had dropped drastically year-on-year, and the client needed to urgently identify the causes, check their hypotheses, and most importantly, do something about it.

We worked to a tight deadline, but quality could not be neglected - so it was decided initially to limit the number of ratios checked with expert interviews. This decision saved us a lot of time, which could be devoted to testing hypotheses and developing recommendations.

This case is not yet completely closed, since the recommendations we developed are still being implemented by the client. We will follow developments and be sure to share the results in numbers!

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Case_Analysis_of_the_client_base_PROB2B.pdf