Project Everest

Adopted Experiment

[JAN 19] [COLLECTION] Bagpay Customer Feedback Experiment

Lean Phase: Customer Segments, Problem

Assumption: The largest block for bagpay customers continuing with the service is cost.
[At the end of July we had 3 BagPay customers on board (Osteria, Samuana, ProEma) and throughout July 2018-December 2018 all discontinued their service with us. The understanding of why these customers discontinued as well as a more extensive understanding of their value in waste management in recycling will enable necessary pivots in the service offering.]

The assumption is that customers will say that cost is the reason that they discontinued, however the real reason is there is not enough value in the service offering for them to be willing to pay but they do have the propensity to pay.

Timeframe: 1 week

Success metric:

Percentage of Bagpay customers that identify other features of the service that would enable them to pay the $4 price point.

Post-experiment actions:

Success point: 2/3 or 3/3 BagPay customers identify factors of the service that would mean they would pay the  $4 price point.

Green light Proceed: Revaluate the customer segment and understand their value in BagPay and ERS. Iterate the bagpay service offering based on customer feedback, reevaluate customer segments appropriate for BagPay. 

Orange light optimise: 1 customer identifies factors of the service that would mean they would pay the $4 price point.

Orange light point: Utilise further offer testing in this segment (not customers) of locally owned restaurants/hotels in order to derive meaning of what the problem and UVP of ERS would be for them.

Red light failure:   3/3 customers only identify price as the factor affecting their discontinuation with the service and could not identify any reasons that would encourage them to continue with the service at $4.

Red light failure Point: Re-evaluation of customer segment and their UVP

The experiment:

The interview should start with very open questions in order for the customer to come to their own conclusions as to why they discontinued with BagPay.

Questions such as

  • How did you find the service?

  • Is it what was described to you when you purchased?

  • When you first signed up why did you value $4 collection?

  • Why did you discontinue?

  • What are three things you would change about the service?

  • What would be the price that would you continue?

  • What would you need from us in this service to pay the $4 price point?

From here there should be a narrowing of what these reasons are in terms of categorisation and the weight of factors for this particular customer. This will enable concrete data for actions on for iteration of the service to this customer segment.

edited on 15th January 2019, 06:01 by Rose Gooding

Rose Gooding Jan 3, 2019

full script here:

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Harry Telford Jan 4, 2019

Status label added: Experiment adopted

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James Balzer Jan 4, 2019

Really interesting.

After reading this experiment and the whole script, I would be cautious about the Timorese cultural desire to save face and not engage in honest feedback as a means of being polite. This isn't derogatory to the culture, and they do so with the best of intentions, yet it's something that I've noticed in both my deployments to Timor-Leste with PEV. This is also a point of consideration when asking businesses if they would be interested in engaging with your service and they say that they'll "consider it", which according to the December Handover, is a category that constitutes 32% of the businesses that you've empathised with.

I guess that this would only be a concern if you were dealing with Timorese people who run the businesses as opposed to expats. However, just something to mention.

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Harry Telford Jan 6, 2019

This is absolutely one of the biggest problems faced when running any tests here in Timor, and one I can see all ventures having an issue with if not consciously overcome. Whether it’s the cultural desire to save face, not wanting to admit they don't understand the concept or the language barrier providing challenges of its own; it can be extremely hard to accurately to define truths. This is where the concept that the cost might not be the root issue here has arisen. We don’t want to take that objection on face value without investigation, and besides, there must be something at which they would value at USD$3, right? If not, they aren’t in our customer segment.

We are starting to think that we may have not been fully conscious of the bias we put on the problem definition around waste management in Dili as well as the value Timorese see in our potential solution.

There are a few things we know however,

- The BagPay customers signed up for some reason. What was it?
- The BagPay customers dropped off for some reason. What was it?

We have structured the questions where the interviewees state what they valued, why they valued it, why they stopped valuing it, and what monetary value they would put on it, instead of us stating something and them agreeing or disagreeing.

I particularly like the question: What would you need from us in this service to pay the $4 price point?

Overall we are noticing a lot of ERS customers dropping off, meaning we aren't providing enough value, leading us to think that we have either not nailed the problem or the customer segment. If we can't nail the problem of our customer segment, how can we ensure we are providing value.

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Fiona Aaron Jan 7, 2019

Hi Rose, what's the plan if 2 out of the 3 customers identify features they would like that would justify the $4? In between green and orange...

Also, is there any data on the competitors in Timor (if any?) and what they are currently charging for a similar service? Having this information might answer all of the above depending on the service/customer base.

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Harry Telford Jan 11, 2019

Good spot Fi, I've changed the Green Light metric to 2/3 or 3/3 identify factors of the service which would lead to them paying $4.
We have information on companies currently running waste collection services in Dili, however its not clearly complied into a competitor analysis anywhere. There would be a lot of value in having that clearly outlined, I'll get the team onto it in the coming week.

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Fiona Aaron Jan 14, 2019

Thanks Harry. Keen to see the competitor analysis!

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Lucy Preiss Jan 17, 2019

Hi Fi and Harry! There isn't a clear competitor analysis complete as there aren't really competitors in the Timorese space, and those that do operate do so in an unclear/shady/vague way. As we understand it we are the only operating recycling collection service in Timor Leste that charges for the service. Some other companies accept drop offs but do so for free or actually pay for recyclables (worth reaching out to Besi Tua again to see if we could team up on recyclables export Matt?). Let me know if there is anything I can help with trying to make sense of the competitor analysis!

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