Project Everest

[Experiment Proposed]: SoCon Malawi - Default Rates on Product Based Loans 2.0 - Communication - January 2019

by
Emma Snow
Emma Snow | 7 months ago | in Knowledge Base

Lean Phase: Channels

 

Assumption: The current default rate from Solar product based loans is 49%. The intention of this experiment is to validate that defaulting on loan repayments is not linked to income. The assumption that SoCon will validate throughout this experiment is that customers repay their loan when consistent reminder texts are sent from Project Everest.

 

Time Box: 4 weeks

 

Success Metric:

% of customers who:

  • Are receiving both reminder messages and confirmation messages once a payment is made
  • Repayment rate increases when messages are sent

 

Criteria:

Success Point: If more than 70% of customers increase their own personal repayment rate when consistent messages are sent AND if the overall default rate decreases.

Green Light: Continue to Loan Structures experiment.

Orange Light Point: If between 50-70% of customers increase their own repayment rate when consistent messages are sent. The default rate remains the same.

Orange Light: To seek out a repayment structure that would assist facilitate an increase in repayment rates.

Failure Point: If there is no change in the repayment patterns of customers OR less than 50% of customers increase their own repayment rate when consistent messages are sent. The default rate remains the same or increases.

Red Light: Re-evaluate potential default rate.

 

Experiment Build:

  1. Send reminder text and balance text to customers every Monday. Send a confirmation text and balance text the day a payment is received. (Through USSD automated messaging- if working at time of experiment, otherwise manual)

  2. Track payments of customers over 4 weeks

  3. In Week 4 compare payments of customers in January with December

  4. Determine the default rate for the month of December and Determine the default rate for the month of January

  5. Measure results and post results

edited on 20th December 2018, 15:12 by Emma Snow
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