A VOC Case Study:
The Need for Customer Due Diligence

Client

$800 million North American manufacturing client

Situation Assessment

Our client was considering the acquisition of a smaller competitor.

Customer Analysis

As part of the evaluation, we spoke to the target company’s top 20 accounts. We discovered that 11 of these top customers were underwhelmed with the company’s product and service — and many were on the verge of leaving. There had been persistent quality problems, and service had been dodgy at best. The target company’s Net Promoter Score (NPS) score was negative — a sure sign that major issues existed and business loss was imminent.

Value of the Process

With this insight, the acquirer restated the revenue projection, which in turn impacted earnings and ultimately the valuation. Armed with objectively collected customer feedback, our client had solid evidence to justify the downwardly adjusted valuation. The deal was ultimately completed, but only with a notable price concession by the target company

Client Testimonial

We did the acquisition; we bought the company. There were issues that were flagged, so it’s incredibly useful to be able to act on those. We are going to hand the transcripts to the sales reps, so they are fantastically useful. Strategex is terrific — very action-oriented. They kept me very informed throughout. I look back very fondly at the project, and for our next acquisition, Strategex will be the first vendor I call.