Using the PPI to Improve Customer Centricity
The Poverty Probability Index (PPI®) is a poverty measurement tool for organisations and businesses with a mission to serve the poor. The PPI is statistically-sound, yet simple to use: the answers to 10 questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line – or above by only a narrow margin. With the PPI, organisations can identify the clients, customers, or employees who are most likely to be poor or vulnerable to poverty, integrating objective poverty data into their assessments and strategic decision-making.
The PPI team has just released a case study that describes KOMIDA’s journey towards implementing the PPI and using the results to improve its products and services to clients. The initial objective of adopting this tool was to understand client outcomes. Yet over time, KOMIDA realized the power of social data, particularly of PPI, in understanding client needs as well and, thereby, in enhancing its own ability to offer products and services that meet these needs.
KOMIDA is an Indonesian microfinance partner of the Grameen Crédit Agricole Foundation since 2012 and is currently serving over 405,000 active customers, all of them female.