projecteverest

Adopted Experiment

[Experiment Adopted]: Village Banks (2/4) - Margin Analysis

Lean Phase: Channel Testing 


Assumption: interest rates being charged in these village banks provides sufficient margins to operate a scalable business


Time Period: 1 week (or time taken to survey 6-8 village banks) 


Success Metrics:
Based on the interest rate, length of loan, and default rate, we can calculate the gross margin for loaning to village banks (use https://goo.gl/nWENUz)


Criteria:
Success Point: gross margin is 60%+
              Green Light: proceed to Offer Testing experiment
Orange Light Point: gross margin is between 30-60%
              Orange Light: what is dragging down the margin: loan length/interest rates, or the default rates?
Failure Point: gross margin is less than 30%
              Red Light: look at alternative ways to service consumers without a village bank


Experiment Build:
1. Create a survey based on the above variables
2. Identify village banks to validate assumptions with
3. Organise village visits
4. Execute survey
5. Use the gross margin calculator (link above) to determine estimated gross margins
6. Measure results and post experiment results

edited on 28th January 2019, 10:01 by Ella Grier

Ella Grier 4 months ago

Status labels added: Experiment adopted, Complete

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