Social Impact Measurement Insights of the 1st Investment Round of Phase II
As part of IAP’s efforts to understand the impact of the project for people living in poverty (PLIP), we commissioned 60 Decibels to apply a lean data collection and analysis methodology to measuring the social impact of the innovative and inclusive business ideas implemented by selected companies across the four IAP countries. We are now proud to release the Aggregate Impact Report that presents the results of this assignment.
Over three months (October to December 2020), 60 Decibels conducted 1,692 telephone interviews with customers (or consumers) from 6 IAP portfolio companies operating in Cambodia, Ethiopia, Uganda, and Zambia. The focus of the study was to evaluate the 1) effectiveness of the fund, 2) outreach to PLIP, 3) depth of impact created, and 4) gender impact.
- The IAP portfolio is performing well across social and operational impact metrics and is at par with the 60d global benchmark:
- 92% of the customers served by portfolio companies reported an improvement in their quality of life, such as increased earnings, improved skills, increase in spending power, and productivity etc.
- 83% of customers served by portfolio companies reported that they are accessing the product or service for the first time.
- 78% of costumers served by portfolio companies reported that they cannot easily find a good alternative to the product and service.
- For female customers who were able to generate income by using these products and services, 8 out of 10 said that their ability to make decisions about the money earned has improved.
- There is an opportunity to share lessons across the portfolio, and from costumers that have offered suggestions for improvements. On average, 21% of customers experienced a challenge using the product or service and the top suggestions for improvement mirrored the challenges they faced, concerning increased issue resolution and reduction in prices;
- Even so, the average Customer Effort Score is 3.8 out of 5 showing that customers are reasonably satisfied with how companies are handling their issues.
- There is an opportunity to further reach low-income customers: 42% of IAP’s portfolio costumers interviewed live below the poverty line compared to the average population rate of 61% below the poverty line.
- The Agricultural companies tend to outperform companies in the other three sectors. Their customer base is also the most inclusive of the poorest in the countries.
Download the full Aggregate Impact Report HERE.
As part of this exercise, each company that participated received a results analysis presenting the survey results for their individual customer base, to encourage further reflection and action. If you are interested in knowing more about the individual company results decks, we encourage you to contact the company directly to ask for this information.
Costumer voice snapshot, 60 Decibels, Lean Data Insights For IAP, 2021.