Miller Center Fellowship

Authors

Isabel Miranda

Document Type

Research Report

Publication Date

11-2016

Abstract

Opportunity: Currently, there are approximately 3 million individuals in Mexico without access to grid-based electricity. These individuals spend a substantial portion of their income purchasing candles and kerosene. Mexico is investing public funds in rural electrification. However ILUMEXICO has developed a more sustainable model of bringing light to rural communities. one with many advantages. such as after-sale services. over centralized solutions. It could be more efficient and cost-effective for the Mexican government to invest in ILUMEXICO's solution than pursuing its own.

Research Activities: Our team conducted 32 research interviews with both I LU MEXICO customers and government program recipients to assess their satisfaction with their solar home systems. We used the Net Promoter Score (NPS) methodology. Findings After-sale services and strong company-customer relationships result in enhanced customer satisfaction. and increase the likelihood that customers recommend ILUMEXICO products and service to other community members. I LU MEXICO received a 100% promoter score versus a 75% promoter score of government programs. This validates ILUMEXICO's approach to customer acquisition and support.

Deliverable: We present field data indicating that ILUMEXICO's approach satisfies the needs of beneficiaries better than donation-based government programs. This is consistent with current trends in sustainable development practice and scholarship comparing government-led programs with social entrepreneurship. We identify key elements of ILUMEXICO's business model that influence greater customer satisfaction.

Recommendations: Based on comparison data. we recommend a partnership between the Mexican government and ILUMEXICO. Through collaboration. these parties can more effectively and cost-effectively reduce energy poverty in Mexico. generating positive impacts throughout rural Mexico.

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