identified the reasons for low customer satisfaction
and leveraged analytics to get leadership on-board.
A leading big-box retailer
noticed customer satisfaction decline. There were several possible causes of
for the decline, but they were unsure which cause was having the largest
Qualitative and quantitative
research were used to identify the main reason – product out of stock
levels. However, leadership was
reluctant to invest in the agreed upon fix.
We suggested a financial impact analysis.
Our financial impact analysis was
able to identify the average price of the out of stock item(s) and the
incidence of this experience. Our
calculations suggested that the financial impact of out of stock across 1,500+
stores was about 10% of sales.
Initially, leadership was hesitant to believe the size of the
impact. We suggested their finance team
review our analysis, and after review, it was validated. Leadership agreed to appoint an operations
executive, and ultimately, was able to reduce their out of stock levels and
increase customer satisfaction.