Project Everest

Adopted Experiment

[JAN 19] Market Analysis (Customer Segment) - Fiji SoCon II

Lean Phase: Problem/ Customer Segment

Assumption: The purpose of this experiment is to validate our assumption that merchants face the issue of providing loans or other forms of capital to farmers (beneficiary of merchants) due to their inability to perform appropriate risk profiling methods to calculate customer risk.

Time Box: 2 weeks

Success Metric:

  • Percentage of merchants who express providing loans to farmers is a current issue they face within their business without the ability to adequately perform risk profiling for potential customers. Data collection methodology - quantitative surveying.

Green Light – Provided successful validation, the next move would be to develop the MVP (workshopped in December) through the form of a CRM (customer relationship management) strategy, formulated from the results obtained – looking at the required features of and begin currency testing the MVP (OCD; online customer database).

Success Point – 70% of merchants express they find providing loans to farmers as a problem as they don’t have the means to perform customer risk profiling.

Orange Light – [40-70% range]. Formulate a better assumption regarding agriculture merchants, iterating the sales pitch – make amendments to the survey questions to better understand why the merchant does/ does not face the problem of loaning to farmers because of risk profiling.

Failure Point – <40% of merchants surveyed did not confirm that rejecting loans to farmers is due to inability to risk profile potential customers.

Red Light – Pivot and reassess the assumption by reverting back to the empathising stage, establish what problems merchants do experience with different loan types.

Experiment Build:

1. Design a set of survey questions for agriculture merchants that will cover the concept of microfinance and will confirm/ disaffirm our assumption. Interview questions will include:

  • Whether merchants find loaning to farmers an issue.
  • Whether merchants currently or in the past have utilised any means of software-based risk profiling (formal/informal).
  • Their average annual/ monthly customer base (n).
  • The average number of potential customers they turn away due to the assumption of risk.

2. Empathise with a minimum of 30 agriculture merchants, asking set survey questions.

3. Analyse the results obtained; and move onto next steps.

edited on 13th January 2019, 21:01 by Jess Riley

Jess Riley 8 months ago

Status label added: Experiment adopted

Reply 0

Jess Riley 8 months ago

Hey Britt, can you please link pdfs of your surveys so that we can see and review your data points. Good luck with your experiment!!

Reply 1

Fiona Aaron 8 months ago

Sounds good. I understand the assumption, but why are we doing it? To understand whether there is a market for microfinance amongst farmers? Or to know that we have to design a risk profile? Just need some clarification as to the purpose of this. Thanks!

Reply 1

Brittannie Northey 8 months ago

Hi Fiona, very valid question - thank you for it. Essentially your questions go hand-in-hand. SoCon in December validated that there is indeed the market space and need for microfinance amongst farmers, however, this month we have established some further disparities between both subsistence and commercial farmers and what finance looks like to them respectively. From this we are in pursuit of validating the links between these farmers and other intermediaries that provide farmers access to capital/ other necessary goods for their business; in which agriculture merchants is the most predominant linkage point at this given time between the most vulnerable farmers and access to capital/ product loans. We understand that customer risk profiling is potentially a need for merchants in order to provide loans/ other means of providing capital to these farmers, therefore the aim is to validate this assumption of risk profiling with the possibility of designing a risk profiling system (through the form of an OCD as an MVP) in due time. Hoping this somewhat provides clarification.

Reply 0

Brittannie Northey 8 months ago

Hi Fiona, very valid question - thank you for it. Essentially your questions go hand-in-hand. SoCon in December validated that there is indeed the market space and need for microfinance amongst farmers, however, this month we have established some further disparities between both subsistence and commercial farmers and what finance looks like to them respectively. From this we are in pursuit of validating the links between these farmers and other intermediaries that provide farmers access to capital/ other necessary goods for their business; in which agriculture merchants is the most predominant linkage point at this given time between the most vulnerable farmers and access to capital/ product loans. We understand that customer risk profiling is potentially a need for merchants in order to provide loans/ other means of providing capital to these farmers, therefore the aim is to validate this assumption of risk profiling with the possibility of designing a risk profiling system (through the form of an OCD as an MVP) in due time. Hoping this somewhat provides clarification.

Reply 0

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