How we improved CX across retail stores for our Consumer Durables client

Our client is a leading luggage company. They have a strong presence across thousands of stores in India. With most of it being largely unorganised, they wanted to optimise CX in their official stores and franchises.  

Basically, they wanted to discover the level of expertise required at each franchise/store and quantify that.

Using NPS® and Text Analytics, Numr discovered granular insights that helped in improving our client’s relationship with its customer. Subsequently, this increased profitability and revenue.  

Challenges

Our client wanted to-

1. Minutely understand the sales process across all their stores
2. Discover stores that are doing extremely well and WHY
3. Find out factors that influence their customers’ purchase decision
4. Measure customer experience across all touchpoints

Now, a major chunk of sales for consumer durables happens in the unorganised sector. Big retails outlets (such as Big Bazaar) comprise of another substantial portion. Consumer durable companies such as our client do not have real-time access to this sales information.  

However, companies do have real-time sales data for their franchises and official retail stores.  

These are the only stores that you can manage.

The Numr Solution

For a luggage company such as our client, there are 3 major touchpoints/ transaction points.  

These are-

• Buying experience
• Repair experience
• Customer support experience

(Please note- majority of the customers buy the product in the unorganised sector and they never give feedback. They never touch the company. They only experience the Brand. So, we measure their experience using R-NPS®. Click here to read the case study.)  

STEP 1- IDENTIFY RETAIL STORES GENERATING THE HIGHEST SALES

First, we identified the stores that were generating the highest sales (after accounting for the population in the area).

After identifying the stores, we looked at their customer satisfaction score (NPS®) and found that,  

Stores with an NPS® higher than 50 have 25% profitability and stores with NPS® of less than 50 have lower profitability.  

So,  

Stores generating higher sales also have a high NPS®.

Which means,  

A higher NPS® drives higher profitability.

STEP 2- DRIVER’S ANALYSIS TO GET TO THE WHY

Numr’s driver’s analysis showed that the top 2 factors responsible for higher NPS® were-

1. Knowledgeability of the Sales staff

       2. Ability of sales agent to provide customers with luggage that best suits their needs

So, customer satisfaction is primarily being driven by these 2 factors. And, stores with low profitability were failing at these.  

These issues could easily be solved by conducting specific training exercises for the frontline to improve profitability.  

Result

1. Found that stores with NPS® higher than 50 have 25% profitability while stores with less than 50 NPS® have lower.
2. Discovered the 2 major drivers that influence customer satisfaction and therefore, profitability.
3. Provided specific CX strategies to quickly increase revenue.