projecteverest

Experiment adopted

[Proposed Experiment] SoCon I, Fiji Jan 2019, Determining Customer Segment

Lean Phase: Customer Segment

Assumption: SoCon’s customer segment are Buka stove customers with the following characteristics:

  • Women aged 20-60 yrs

  • Work from home (often handicrafts) and cook for their families

  • Have a preference for firewood as cooking fuel

  • Both urban and rural location

  • Prefer payment plan over upfront financing for the Buka stove because

    • They can’t afford it upfront, and/or

    • They prefer financing it over a period of time

NB: This segment falls within archetype 1 and 4 from Fuel’s customer archetype experiment (https://projecteverest.crowdicity.com/post/789850)

Time Box: 1 - 3 weeks

Success Metric:

The percentage of prospective Buka stove customers who fit the assumption (refer to above).

Green Light: If success point is reached continue with sales of Buka stoves. 

Success Point: If 70% of people surveyed fit one of the above assumptions, then that customer segment category is considered validated.

Orange Light:

  • Analyse (potential/actual) customer base and change success point metrics

Failure Point: If 40% of people surveyed fit one of the above assumptions, then the failure point is met.

Red Light: Find other/actual main customer segment (from obtained data). Carry out further interviews and surveys if necessary.  

Experiment Build:

1) In conjunction with the fuel team, create a survey to collect data on:

  • General demographics

  • Interest in the stove

  • Whether they prefer a payment plan vs. upfront financing and why/why not?

  • If yes, information on income cycles/when they get paid/levels of discretionary income

2) Collect relevant data from pre-existing databases (Fuel). This likely includes:

  • Age

  • Gender

  • Location

3) Contact potential buyers, such as market stall holders and villagers to arrange a time to carry out interviews/ surveys, in conjunction with other experiments.

4) Practice interviewing/ surveying.

5) Carry out 35-40 surveys at the pre-arranged dates and locations.

6) Compile and analyse the collected data to prove or disprove assumption.

7) Type up the final experiment results into results document and upload to Crowdicity.  

Tagged users
edited on 7th January 2019, 22:01 by Sian Cliffe

Jess Riley 3 months ago

Status label added: Experiment adopted

Reply 0

Fiona Aaron 3 months ago

When analysing if this customer segment is valid, i think it's really important to know whether it's worthwhile for us, Microfinance company, to provide loans for this demographic, considering the small loan amounts etc.
Also, what is the market size here? Has any modelling been done around how many loans would be necessary in this customer segment for it to be profitable for us and reduce the risks of x% of customers defaulting?

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Henry Edwards 3 months ago

These are all very valid points which we are currently taking on board. The current assumptions surrounding the customer segment are based off of our previous experience with the fuel team and selling Buka stoves. We are currently looking into expanding our customer segment and we agree that such a small market may not be profitable but we needed a place to start. We also have a spreadsheet which attempts to model how the amount of loans we have will reduce risk and increase profitability but it is a work in progress. Thank you so much for your feedback.

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