Optimizing CX Across Retail Stores with Driver Analysis & Predictive Analytics for a Consumer Durables Leader

The Challenge: Enhancing Customer Experience in a Fragmented Market

Our client, a leading luggage brand in India, operates across thousands of stores nationwide. However, the majority of sales in the luggage industry occur in the unorganized retail sector, making it difficult for brands to track and optimize customer experience.

To gain a competitive advantage, the company wanted to enhance CX at its official stores and franchises, where it had direct control over operations.

Their core objectives were:
📌 Identify high-performing stores and understand what drives their success.
📌 Measure customer satisfaction across all retail touchpoints.
📌 Analyze factors influencing customer purchase decisions.
📌 Develop a CX strategy that improves customer experience and boosts profitability.

Given the challenges posed by the unorganized sector, our focus was on leveraging real-time data from the company’s official stores to drive customer experience improvements and ultimately increase revenue.

The Solution: Using NPS® and CX Data Analytics to Drive Profitability

To address these challenges, Numr deployed a structured, data-driven approach using NPS®, text analytics, and driver analysis.

Step 1: Identifying High-Performing Retail Stores

📌 Analyzed sales data from all official stores and franchises.
📌 Ranked stores based on profitability, accounting for population density and regional demand.
📌 Measured NPS® for each store to determine the relationship between customer satisfaction and profitability.

💡 Key Finding 1: Stores with Higher NPS® Generate Higher Profits

📊 Stores with an NPS® above 50 had a 25% profitability rate, whereas stores with an NPS® below 50 had significantly lower profitability.

📊 This proved a direct correlation between customer experience metrics (NPS®) and revenue generation.

📊 In other words, improving customer satisfaction leads to increased profitability.

🚀 Why this matters:
✔ A high NPS® translates to better word-of-mouth marketing, reducing customer acquisition cost (CAC).
✔ Satisfied customers are more likely to make repeat purchases, increasing customer lifetime value (CLTV).
✔ By optimizing CX strategy, stores can enhance their financial performance.

Step 2: Identifying Key Drivers of Customer Satisfaction

📌 Conducted driver analysis to determine the top factors influencing NPS®.
📌 Analyzed survey responses and customer feedback using text analytics.

💡 Key Finding 2: The Two Biggest Drivers of Customer Satisfaction

1️⃣ Knowledgeability of the sales staff – Customers were more likely to make a purchase when sales representatives were knowledgeable about product features and benefits.

2️⃣ Ability of sales agents to recommend luggage that best fits customer needs – Personalized recommendations significantly improved the shopping experience.

📊 Stores with lower profitability consistently underperformed in these two areas.

🚀 Why this matters:
✔ Training frontline sales staff on product knowledge and customer engagement can significantly improve customer retention.
✔ Stores that enhance personalized service see higher conversion rates and stronger customer loyalty.
✔ Optimizing customer journey touchpoints leads to measurable improvements in revenue.

The Results: Turning Insights into Action

📈 Identified that stores with an NPS® higher than 50 had 25% profitability.
📊 Pinpointed the two primary factors driving customer satisfaction.
🚀 Developed a CX strategy to improve sales performance and enhance brand loyalty.

By leveraging CX data analytics and NPS®, our client was able to:
✅ Improve customer experience by refining sales training programs.
✅ Increase customer retention by enhancing the buying experience.
✅ Boost profitability through a data-driven approach to store performance management.
✅ Strengthen the brand’s reputation by ensuring consistency in customer interactions.
✅ Reduce customer acquisition cost (CAC) while increasing customer lifetime value (CLTV).

Key Takeaways: The Power of CX in Driving Retail Success

This case study underscores a critical lesson in customer experience: Investing in CX strategy directly impacts profitability.

🔹 Customer satisfaction (NPS®) is a key predictor of store performance and revenue.
🔹 Empowered sales teams lead to improved customer experiences and stronger brand loyalty.
🔹 Customer journey optimization can enhance conversion rates and retention.
🔹 Demonstrating the ROI of CX helps justify investments in customer experience improvements.

By leveraging actionable insights from NPS® and driver analysis, our client successfully optimized CX in their official stores, driving measurable gains in both revenue and customer satisfaction. 🚀