Project Everest

[Proposed Experiment]: SoCon Malawi, January 2019, Defaulting Customer Experiment (1/2)

Lean Phase: Channel Testing

Assumption: The current default rate from Solar product based loans is 49%. The intention of this experiment is to validate that the price points are not the primary reason for defaulting consumers. The assumption that SoCon will validate throughout this experiment is:

The lack of communication with the customers has caused high default rates., In particular, we are testing the assumption that consistent reminders to pay loans and telling customers how much of their loan they have left will lower the defaulting rate.

Time Box: 2 weeks (or time taken to survey 30 customers)

This can be done in conjunction with defaulting customer experiment 2.

Success Metrics:

1. % of people who say they weren’t aware of their progression in their loan repayment

2. % of people who say the reason they didn’t pay their loans on time is because they forgot or weren’t sure if their payments were clearing.

Criteria:

Success Point: 60%+ of customers say they didn't know how much progress they'd made on their payment plan and 50% of customers self-identify that communication was why they defaulted on a payment.

            Green Light: Devise automated CRM to consistently communicate payment information to customers of the solar product.
Orange Light Point: 40%-60% of customers say they didn't know how much progress they'd made on their payment plan and 30%-50% of customers self-identify that communication was why they defaulted on a payment.
             Orange Light: re-evaluate survey and determine if the structure or content needs adjusting.
Failure Point: less than 40% of customers say they didn't know how much progress they'd made on their payment plan and less than 30% of customers self-identify that communication was why they defaulted on a payment.
             Red Light: assess other reasons why customers default on solar payments.

 Experiment Build:

1. Employ the following survey on 30 customers who have defaulted on their payments
2. Organise visits to their houses
3. Hire a translator to convey information
4. Execute survey
5. Measure results and post experiment results

The survey is as follows:

  1. Validation of defaulting customer
    1. Do you own a GD light product?
    2. Could we get your phone number? → Cross check in CRM to check balance
    3. Are you part of a repayment plan?
    4. How often do you repay?
    5. Do you have any troubles with the repayment system?
    6. Are you aware that you have [amount] on your balance? 

           

2.  Is communication a factor in high defaulting rates?

  1. Do you enjoy the product?
  2. How has it benefited your family?
  3. What reasons aren't you on track for your payment?
  4. Do you plan to start paying your loan again?
  5. Is there anything that PEV could do to help or any information that is unclear?

The response to the final question can be used as the basis for a USSD FAQ that we could construct for customers to access.

Tagged users
edited on 7th January 2019, 07:01 by Rafael Branton
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