Proposed Experiment

[Proposed Experiment] SoCon Fiji Offer Testing Buka Stove Mark-up Prices

Lean Phase: UVP

Assumption: Individuals are willing to purchase;
- A $90 Buka Stove for $x on a 3 ½ month, mobile plan to gain access to the product earlier
- A $100 Buka Stove for $x on a 3 1/2 month, mobile payment plan to gain access to the product earlier.
- A $150 Buka Stove for $x on a 3 ½ month, mobile payment plan to gain access to the product earlier.
- A $200 Buka Stove for $x on a 3 ½ month, mobile payment plan to give access to the product earlier.

Time Box: 2 weeks
Success Metric: The percentage of Buka stove customers who want a Buka stove but cannot afford it who sign an EOI for the payment plan for the Buka Stove.
[NB: must be the percentage of people ‘interested’ in the payment plan, who would be willing to pay the set price.]

Green Light - Proceed with currency testing this, and following through with sales of the Buka stove to measure and monitor default rates.

Success point - Talk to 30 villagers that want to buy a Buka stove but cannot afford it. More than 65% must express interest through an EOI for the stove at the set price point.

Orange Light- Iterate on sales pitch, pitch of SoCon and its purpose, iterate on financial terminology used to describe the payment plan.

Failure Point - If less than 20% of villagers contacted express interest in an EOI at the set price.

Red Light - Failure Protocol is to revise payment plan structure and amount in accordance with the financial model.

Experiment build:
1. Build offer testing survey. This will include questions about each of the price points and whether customers would be willing to pay the mark-up for each price point.
2. Draft up the EOI in conjunction with the Fuel team.
3. Work with Fuel team to organise village visits in conjunction with their experiments for the month.
4. Conduct visits and collect EOIs
5. Analyse data.

edited on 1st January 2019, 22:01 by Jess Riley

Alexander Teicher 5 months ago

Hey Rose and Naomi,
Just trying to clarify what you are actually testing here. Is the offer that people are willing to pay more than the advertised price for a stove, in order to access it earlier?
Eg: It costs $100, "I cant afford that", would you pay $110 over 3 months so you can have the stove now??

Also with the first step of the price, can this be formalised from the Fuel team for further price testing to understand what the conversions would be like at the different prices. I dont see this negatively impacting SoCon's aspect, it just means the prices tested will be determined by fuel more so.

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Rose Martin 5 months ago

Yes and yes!! Sorry I meant to mark this as incomplete experiment because numbers and metrics aren't finalised here. But I'll update you when it is done so u can have another read :)

But the concept is to offer test the loan prices, at different prices of the stove. We've had significant mark-ups in both Buka stove and loan prices, so need to get an indication of whether this is feasible for us (and don't want to find out the hard way). Fuel team will be running offer tests alongside this which I will link when they're posted also.

Will let u know when its finished !

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Wade Tink 5 months ago

This looks like price testing as opposed to offer testing given your only variable is price. Have a look at how you could best conduct this.
Keen to understand where 65% interest level comes from? How does that feed into your business plan?
Looking forward to the update.

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Jess Riley 5 months ago

Status label added: Under Review

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Jess Riley 5 months ago

Status label added: Proposed Experiment

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