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[Experiment Results] – Malawi Solar Jan 19 – Blantyre Market Stall – Lay-by sales

Content

Lean Phase: Revenue streams

 

Assumption: There will be a higher sales conversion rate in Blantyre

 

Introduction:

The lay-by payment method was put in effect on the 23rd of January 2019, and has been a payment option at the Blantyre stall since. The stall has been operational on most days during the week, depending on the weather. The layby deposit amount over this period of time was MWK 10,000, and to return within 3 days for a final payment of MWK 25,000.

 

Results:

Summary Statistics:

  • Sales: 4

  • Lay-by sales: 3

  • Lay-by sales percentage: 75%

Success Metric:

Based on the success metric, the success point was labelled as 40% or more sales being done through layby. Since the implementation of layby, there has been 3 layby sales out of 4 sales at the Blantyre stall, giving it a 75% success rate.

Qualitative Data:

The layby method was mentioned to all the EOI’s who said that they did not have enough cash available to afford the solar kit upfront. After the customers were informed, many of them would laugh at the idea, or not be interested in it at all. However, despite this, lay-by showed to still be a feasible option for customers with the 3 sales received.

 

Validated Learning:

From the results obtained over the implementation period of layby, the percentage of total sales from the Blantyre stall was 75%, achieving the success criteria. Despite having a very high rate of lay-by sales, the data is obtained from a small amount of total sales, and hence is not entirely viable. The results however are pointing in the right direction to suggest that lay-by is a feasible payment channel. From this data, the lay-by method can be given a green light under the success metric, but the experiment still requires further validation to suggest it is a suitable payment method.

 

Next Move:

Although there is not enough data to suggest this experiment is completely successful, enough data is presented to suggest it may be a feasible payment option. It may be necessary to continue testing the layby system through June/July to obtain a percentage of lay-by sales from the next 10-20 sales from the stall.

Based on qualitative results, a potential adjustment to the experiment to test is to alter the initial deposit fee from MWK 10,000 to MWK 5,000, and changing the

edited on 25th February 2019, 14:02 by James Balding
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