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Proposed Experiment

[Proposed Experiment]: Malawi SoCon: replicating social pressure with Village Chiefs

21 sales in February have been made in a single village (Sumani 2) where the chief is the guarantor for 19 of these sales. The chief has expressed a desire to ensure that all customers are paying. This allows us an opportunity to make the most of this situation and test the replication of social pressure and the influence of village chiefs. 

 

Lean Phase: Channel and Revenue

Assumption: By implicating a member of the community in the assurance of payment, more we can replicate social pressure and will have a higher rate of repayment. More specifically, by getting the Village Chief involved in following up payments our customers will repay more frequently and will make repayments to us a priority. Consequence and incentive may also be easier to put into effect by providing consequence/incentive only to the village chief. 

Time Period: 1 Month out of country (March 2019)

Criteria: repayment rate %

Success Metric:

Success Point: 70% repayment rate from the village in Sumani 2, Nancholi. 


Green Light: Make involvement of village chiefs a necessity in all new villages we enter. Also make sure the village chief approves of all new customers. 


Orange Light Point: repayment rate of 50-70% for the customers at Sumani 2, Nancholi, 

Orange Light: Include Village chiefs in the follow up process on repayments. Design personal incentives for the village chief (monetary) to ensure his/her willingness to proceed with the follow up. 

Failure Point: Less than 50% repayment rate. 

Red Light: This would mean either no improvement or a reduction in repayment rate. Disregard this avenue.

Experiment Build:

1) 21 sales on payment plan have been made in the village Sumani 2, Nancholi. The chief of this village(Joseph Sinoga) is the guarantor for 19/21 sales, and has collected the names and phone numbers of all the people in his village who have opted into this payment plan so that he can follow them up.

2) We should pre-frame to him how we would like to involve him, and exactly what sort of communication he can expect from us. 

3) We need to communicate with him each week about which members within his village have not paid, so that he can chase it up. 

4) We must also monitor the repayment of the people in his village and collect data around repayment pattern and amount repaid. 

5) After 4 weeks if there is no improvement (ie regular payments are not being made by most customers in the village) we can introduce a personal incentive to him. For example, a monetary incentive, or a reduced price product etc. Other options for incentive can be non-personal, ie group saving for the sake of his village. 

 

 

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edited on 26th February 2019, 05:02 by Andrew Vild

Andrew Vild 3 months ago

This is excellent. I thought something already being done.

The 70% repayment rate for green light is quite concerning, as I would deem that very low. I think we need to be aiming much higher and identifying why it isn't. The premise of the finance behind solar is that the money they are spending on candles is greater or equivalent to the amount they are spending on repayments.

We need to compare to organisations like Kiva that have a 96.9% repayment rate. https://www.kiva.org/. Granted they are more established than PEV with established systems.

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Andrew Vild 2 months ago

Status label added: Proposed Experiment

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