projecteverest

Adopted Experiment

[FEB 19] Customer Segment Experiment (Customer Segment) - Fiji SoCon

Lean Phase: Customer Segment

Purpose: The purpose of this experiment is to understand SoCon’s customer segment in relation to the problem of access to capital, and at what stages of the business lifecycle they face this problem.

Assumption:

The early adopters of SoCon’s customer segment are characterised by:

  • Business owners actively seeking to access capital for their business whom are likely starting up (in an introductory phase) or a growth/diversification phase of their business lifecycle.
  • Business owners are aware of why they are unable to access both financial and non-financial capital for their business.

Time Box: 2 weeks

Success Metric: 60 ppl approx.

% of business owners that identify with the early adopters definition

Metric

Green Light - Proceed to do more specific testing on Capital needs. Further define customer segment as necessary and understand early adopters to develop an appropriate UVP.

Success point - 60% of business owners identify with early adopters definition.

Orange Light- Optimise experiment by adjusting definition of early adopters and their awareness of issues surrounding access to capital based on data from experiment. Review survey technique and whether appropriate people were interviewed

Failure Point - 30% or less of business owners identify with early adopters definition

Red Light - Map businesses (geographical and business life cycle) to see where early adopters might lie and redefine definition based on data. If they are aware of options to access capital, try to identify why they aren’t actively seeking it. If they aren’t aware, attempt to understand why.

Experiment build:

Testing 60 people in total and at least 20 people from each identified customer segment - Agriculture, Retail and Tourism businesses.

  1. Create a survey to collect data on:
    a) Current stage of the business life cycle  (i.e. introductory (starting up), growth etc.)
    b) Any issues accessing capital and what type, how much etc.
    c) Purpose of the capital - to improve, to maintain status quo, to grow or diversify etc.

  2. Create google surveys and spreadsheets

  3. Interviewing technique and script development for calls.

  4. Interview the same people from the Problem Experiment (LINK to Experiment)

  5. Survey at least 60 people - 20 from each customer segment.

  6. Compile and analyse the collected data to map the businesses geographically (by region) and by lifecycle stage - try to infer where early adopters lie. Try to define life cycle stages and businesses.

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

edited on 6th February 2019, 21:02 by Tom Steel

Fiona Aaron 4 months ago

Can you please upload your survey questions into this post?
Also, could you please clarify the red light metric? If less than 30% fit in with the early adopter definition we've created, could it not be the case that our definition of our early adopters is incorrect? Rather than finding other businesses and trying to make them fit, could it not be that we are slightly off in our definition? Thanks!

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Lucy Preiss 4 months ago

To add to Fi's comment, aren't we prepared for the case that business owners are seeking to access capital but for whatever reason aren't interested in accessing it through a bank? Meaning their block to accessing capital is whatever emotional/spiritual/biased reason rather than an actual block that they are able to be aware of. How does this fit into the second part of the early adopters definition?

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Tom Steel 4 months ago

Thanks Lucy.
For both of our experiments we are defining capital as both financial capital (loans from both financial institutions and other), and non-financial capital (individuals seeking resources that will improve their business, such as equipment for example). So yes our other experiment, which is looking specifically at the barriers of access, is taking into account the distinction between people wanting loans, people wanting money but not from banks, and people just wanting to buy equipment but can't afford it up front.

Our other experiment should also answer whether the barrier to applying for loans are an underlying bias or distrust of financial institutions.

In response to your last point, this experiment is trying to focus on business owners who are aware they have a barrier to accessing finance because these barriers of access, are tangible problems which we can solve in further experiments, and possibly solved through a product or service (the problem experiment goes into more detail on this). The people who know they have a problem and are actively seeking a solution are always the early adopters form a Lean Canvas perspective, hence SoCon are only attempting to target them as our early adopters.
The problem with customers who do not want to access finance because of emotional/spiritual/biased reasons they are unaware of, is this is very hard to solve through a tangible solution and hence if we find this is the majority, Socon will have to assess whether there is a place for it in Fiji.

Im sorry this is hard to articulate, we have one single survey and one overall plan this month in Fiji, however we have split this up into two experiments on Crowdicity to validate the two different sections of the Lean Canvas.

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Lucy Preiss 4 months ago

Thanks Tom! It is hard to articulate and I struggled to articulate my question, but this answers is perfectly!

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Tom Steel 4 months ago

Yes you are right Fiona. In the red light metric when we wrote "redefine definition based on data" this was in reference to our definition of the early adopters.

It is possible that if we find small business owners are not actively seeking capital an appropriate redefined early adopter could instead be people who do not own a business but are looking to start one (as an example).

thanks for your comment, hope this clears this up.

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Fiona Aaron 4 months ago

Status label added: Proposed Experiment

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Lucy Preiss 4 months ago

Status label added: Experiment adopted

Status label removed: Proposed Experiment

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Sioned Lavery 4 months ago

Is the second definition for established businesses who have tried to access capital already and now know why they can't access capital?

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Tom Steel 4 months ago

Yes that is correct, but it is not limited to this group. The second definition could also be people who have been successful at getting a loan but didn't have an optimal experience. It could also be people who haven't applied for a loan because they are afraid of being rejected, or people who don't want to apply for a loan due to other reasons but know why they don't want a loan (poor product fit on the market, distrust of banks, family or friend anecdotes discouraging them, etc.).

I have attached our flowchart which outlines the logic behind the two experiments and maps the whole problem space. This is still a prototype so it is subject to changes, however this hopefully should clarify the complexity of the situations and why we have kept the definition broad to attempt to understand a large number of businesses who can identify their pain-points in the access to finance.

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