There are two different Nikwax products. There is the "Down Wash" and the "Down Proof". Nikwax recommends using both for items such as sleeping bags in series, but I don't recommend using the "Down Proof".
I would, however, recommend the "Down Wash" which you need to start with either way as step 1. It will simply clean the bag and strip oils and dirt from both the down and shell material. After you use the wash and dry the bag you'll find that your bag has regained much of it's loft and that the DWR coating on your bag should work better.
If… After you wash your bag the shell still doesn't repel water very well then it means the DWR coating (assuming the shell had one to start with) is probably worn out.
That is when Nikwax recommends the "Down Proof" wash in water repellent product, but I feel it does more harm to the down, especially if you've got 850fp or greater. I've done lots of testing and find more clumped plumules after using the Down Proof wash and even a reduced loft after the Nikwax Wash.
What I would recommend instead is to use either the Nikwax "Down Wash" or ReviveX Down Cleaner and then follow up with the "Spray On" Water Repellent. You need to wash the bag and completely dry it. Then with the spray on you can focus the repellency on areas around your face and top of the bag where moisture collects.
I feel the spray on is better since it more or less never works it's way into the down. It is, however, very important to follow the instruction and dry the bag after spraying it on. I do up to 3 applications and dry cycles as well, but I guarantee if you clean your bag with the wash, then dry it and follow up with the spray on treatment your bag will look and feel like new.
I also find for very dirty bags I do two washes with a full dry cycle in between.