Project Everest

Experiment Results

[Experiment Results]: SoCon Malawi – Risk Profiling Testing for Existing Defaulting Customers and Non-Defaulting/Proxy Customers - February 2019

Introduction: Throughout February, Risk Profiling and CRM Surveys were conducted throughout the surrounding areas of NAYO, and villages of Nancholi, Baluti and Nikoka.

Relevant Links:

Proposed Experiments:

Through conducting these two experiments, the qualitative findings are stated below.

Work progress: The risk profiling survey was formatted around questions to do with personal and family demographics, employment, weekly living costs, previous loan history and their knowledge and interaction with the Solar Panel Payment Plan. With a sample size of 29 surveys, different trends and results were seen to develop new understandings about the Payment Plan, CRM and the Solar Product itself.

Employment

  • The average monthly income amongst customers fell between the 45,001 – 70,000 bracket, however we saw customers fall in the <15,000 and also in the >100,000 brackets. This reveals the widespread of income levels amongst our consumers who are all following the same payment plan.
  • 33.3% of customers are paid variably, impacting their commitment to a set weekly or monthly payment plan structure.
  • 66.7% of customers revealed that they were paid consistently on a monthly basis, however majority of these customers were not on the monthly payment plan option.
  • There were a significant range of different occupations revealed throughout the customers, ranging from nurses to business owners to employees at NAYO.
  • The most common occupation was a business and stall owner, which mostly involved selling clothing and vegetable produce.
  • 33.3% of customers revealed that their employment and income is impacted by the seasons.

Weekly Costs

  • Over 90% of customers have children who are currently attending school, many of these also revealing that school fees are one of the largest costs for them which takes priority over the payment plan at different times of the year.
  • A significant trend that was found was that there is a divide between customers who are using solar full time and customers who only use solar in a black out. Customers who are using solar all of the time are no longer spending any money purchasing candles, torches or other forms of lighting, rather using the solar panel for both lighting bulbs and phone charging.
  • On the other hand, customers who only use solar part time still pay for ESCOM or Candles, with the average weekly expense for such being 4000 MWK.

Previous Loans

  • 75% of customers had never had a loan before, but those who did have had it with Village Bank and all have repaid it. 
  • No customers have any other outstanding loans at the moment.

Payment Plan

  • 62% of customers are currently on the weekly plan and 37% on the monthly plan, however 93.3% stated that the monthly payment plans would be more affordable.
  • Only 56.3% of customers knew when their next payment was due, and only 50% knew how much each payment was.
  • When prompted with the question, “have you had any problems with the repayment system”, 43.8% of customers responded Yes, giving reasons surrounding the lack of confirmation texts. Whist this question did not directly lend itself to such response, it reveals that lack of communication and texts from PEV when customers make payments, is at the forefront of many customer’s thoughts.
  • Another interesting insight from this question was that Monday is not a good day for customers to pay off weekly payments, as after the weekend they have little money left to spend.

Defaulting Customers

  • Customers were asked directly “why did you default on your payment plan?”, with the most common responses being that the lack of confirmation and balance texts resulted in customers losing trust in where their money was going, as well as customers struggling to pay if off due to other impeding costs such as school fees.
  • 60% of customers had experienced unforeseen circumstances, including illness, injury and personal reasons, that resulted in them not being able to continue payments.
  • 100% of customers stated that they planned on resuming the payments.

Communication

  • No customers had received any text messages from PEV in the previous weeks, confirming that the current CRM is not working.
  • 100% of customers stated that they would like to receive a confirmation text once they had made a payment, and many stated that they would also like this text to contain an update of their current balance.
  • 100% of customers stated that reminder text messages before a payment is due would help them to remember their next payment.

Recommended Future Actions:

https://projecteverest.crowdicity.com/post/1014080

https://docs.google.com/document/u/4/d/1gETrV...127865025454614

 

edited on 25th March 2019, 23:03 by Wade Tink

Wade Tink 3 months ago

This was amended to become Experiment Results as opposed to a Work Update.

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Wade Tink 3 months ago

Status label added: Experiment Results

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