Project Everest

[Experiment Results]: Customer Segment - Financial Institutions - Social Consulting Fiji July 2019

 

[JUL 19] Customer Segment Experiment Results - Financial Institutions - SoCon 2 Fiji

Link to the experiment Design Post: 

https://projecteverest.crowdicity.com/post/2002280

Lean Phase: Problem/Customer Segment 

Assumption: FI’s can be a potential early adopter for PEV. They:

  • Have identified a problem accessing or profiling customers, thus they are missing out on viable customer segments such as small businesses. 

  • Are aware of the fact that they have this problem accessing or profiling customers

  • Are willing to pay for a solution to solve this problem.

Success Metric: 

% of FI's that identify as an early adopter, meaning: 

  • They identify they have a problem.

  • They want to solve this problem.

  • They are willing to pay for a solution

Results: 

Classification of early adopters, early majority and stakeholders:

Early adopters: These FIs identified that they had a problem expanding their customer segment, they indicated a want to solve this problem and are willing to pay for a solution.

Early Majority: These FIs fall under the classification of the population who will adopt the product after seeing it used successfully by the early adopters. This means that they might identify that they have a problem, but might not necessarily want to solve this problem or are willing to pay for a solution just yet.

Stakeholders: These FIs do not identify that they have a problem expanding their customer segment, and hence do not have a need to solve the problem or pay for solving that problem. These stakeholders become sources of information for PEV in future.

36% of FI’s interviewed fit all 3 criteria and were identified as an early adopter, therefore the experiment is a green light.

Early Adopter:

  • Bank of Boroda 
  • Credit Corporation 
  • Merchants Finance 
  • Fiji Development Bank 

These FI’s all have the following characteristics:

  • All currently pay for marketing services. 
  • All understand they have an unreached customer market. 
  • Interested in expanding their future market. 
  • Interested in increasing brand awareness. 

Early/Late Majority:

  • BSP 
  • BRED Bank 
  • HFC 
  • Carpenters Finance 

They have the following characteristics:

All currently pay for marketing services. 
All believe current marketing methods increase their customer base. 
Unsuccessful loan applicants do not have a perceived negative impact on the FI. 
To maintain customer experience they encourage potential loan applicants to return with the correct documentation; turning away customers is a last resort. 

Important Stakeholders:

  • ANZ Bank
  • WestPac
  • SPBD

Results Spreadsheet

https://docs.google.com/spreadsheets/d/1OQ5VW9gEzmhzZD__chi1rDnMxxCtr6ZpA853zn17EXg/edit#gid=620870076

Key Results and Data 

https://docs.google.com/spreadsheets/d/12-YKmUjxws-YXpVYw1LJiPwVwsMFnzmfu5ZiDTxgMig/edit#gid=1298166633

Validated Learning:

We discovered that all FIs: 

  • Engage in marketing activities. 
  • Pay for these marketing activities. 

By evaluating the results the larger banks which are ANZ and Westpac did not see any negative impacts as a result of turning away customers. They benefited from not servicing these customers because it saved their resources and time. These banks referred business owners seeking agriculture loans to Fiji Development Bank. This was due to the volatility within the Agriculture industry, reflected by: 

  • No payslips 
  • No receipts 
  • Seasonal harvest times and income 

These larger banks were not interested in expanding their customer segment to include SMEs, such as start up businesses. For example, Westpac was not looking to increase their lending due to liquidity issues; they are currently focusing on securing funds rather than lending. Larger banks are not seeking to revisit their stringent loan requirements or repayment schedules to suit the needs of potential customers. 

Whereas the small to medium banks strove to assist customers; they saw turning away customers as a last resort. They endeavoured to maintain a high level of customer service which in return increased: 

  • Word of mouth marketing 
  • Customer advocacy 
  • Customer retention 

It was found that depending on what the loan would be used for and the value of the loan, personal loans could be suitable for some Small to Medium Enterprises (SMEs).

Next Move:

The experiment successfully validated that there are 3 FIs who identified as Early Adopters and 4 FIs as Early Majorities who may be interested in working with PEV to expand their customer segment. From here we will go onto offer testing both the early adopters and early majority FIs to define what value we can bring to FIs. The UVP experiment’s purpose is to quantify what percentage of FI’s see value in our offer and are willing to pay for this service.

Using the data collected from SoCon I, we will also move on to moonshot thinking and developing a Minimum Viable Product (MVP).

edited on 17th July 2019, 22:07 by Jamie Butler
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