CLIENT EXIT SURVEY 2

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CLIENT EXIT SURVEY 2
PRESENTATION FOR
2
RATIONALE
FOR MDF KAMURJ DROP-OUT MONITORING
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DROP OUT MONITORING WHAT FOR?

• Forecasting business planning!
• Appraising institutional performance
• Seasonality!!! - analyses magnitude of desertion
  fluctuates over a period of one year.
• Learn about quality of service (attributes under
  all Ps) in order to respond in a timely manner
  to changes in clients preferences and needs. Not
  waiting for a disaster.
• Learn about the needs of these groups that leave
  more frequently (or those that are core target
  clientele) adjust the services to their needs.
• In general product refinement and new product
  development
• It is linked to competition surviving
  (long-term!) strategy. Those MFIs that will build
  loyal client base will survive on the Armenian
  market.
• Additional role can be as direct marketing tool
  encouraging people to come back informing them
  about new developments.

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RESULTS
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METHODOLOGY
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WHAT CHALLENGES YOU ENCOUNTERED DURING DATA
COLLECTION?

• Preparation
• Interviewing
• Field staff attitude
• Costs
• Difficult questions
• Coding
• Branch manager supervision
• Data input

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SAMPLE CHARACTERISTIC
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DROPOUT PROFILE
28 - mixed reasons

• Dropout profiles are created using two variables
  
• Two most important reasons (a4) for dropout
  aggregated into one variable with 4 categories
  MDF Kamurj related reasons, external reasons
  only, client forced out (see next section for
  details).

N213

• Judgment of interviewer what will be (is) a
  probable behavior of dropouts based on main
  reason for dropout, her current participation in
  financial market and intent to take a loan.

N207
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REASONS vs. BRANCH AND CYCLE
N213
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PROBABLE BEHAVIOUR vs. BRANCH AND CYCLE
N207
11
MAIN REASONS vs. PROBABLE BEHAVIOUR
N203
12
MAIN REASONS vs. INTENT TO TAKE THE NEXT LOAN
N203
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MAIN REASONS vs. BEHAVIOUR
N207

• Given the new subjective breakdown there are 5
  main dropout profiles/categories (that represent
  93 of all dropouts)
• voluntary satisfied lost due to external reasons
  30
• sleepers (both voluntary satisfied and
  dissatisfied not using any other credit services
  planning to come back) 41
• voluntary dissatisfied eager to return if
  services are improved 4
• voluntary dissatisfied lost to competition 3
• forced out 15.

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CHARACTERISTIC OF PROFILES
Fisher test, at the significance level 0,1
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MAIN REASONS vs. BEHAVIOUR
N207

• Given the probable behaviour and main reasons
  there are 5 main dropout profiles/categories
  (that represent 85 of all dropouts)
• voluntary satisfied lost due to external reasons
  17
• sleepers (both voluntary satisfied and
  dissatisfied not using any other credit services
  planning to come back) 38
• voluntary dissatisfied eager to return if
  services are improved 9
• voluntary dissatisfied lost to competition 4
• forced out 15.

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PROFILE vs. BRANCH
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CHARACTERISTIC OF PROFILES
Fisher test, at the significance level 0,1
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PROFILE vs. BRANCH
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MOST FREQUENTLY CITED REASONS
N214
Answers do not sum up to 100, because there was
multiple answer possible
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MOST FREQUENTLY CITED REASONS BY BRANCH
N214
Answers do not sum up to 100, because there was
multiple answer possible
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REASONS FOR DROPOUTFORCED OUT CLIENTS
N218
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FINANCIAL SERVICES USED
N42, using other financial services
N219
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FINANCIAL SERVICES PROVIDERS USED
19 - uses other sources
Reasons for choosing other MCOs IR Loan size RPM
frequency
n46, using other providers of financial services
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OTHER FINANCIAL SERVICES USED GROUP
CHARACTERISTIC
Fisher test, at the significance level 0,1
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INTENT TO TAKE ANOTHER LOAN IN MDF KAMURJ
N219
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CLIENTS SUGGESTIONS

• Declining interest rate 37 people
• New product 34 people. Particularly, individual
  loan was stressed.
• RPM schedule (not so often) 15 people
• No reserve fund 7 people
• Loan size increase 6 people

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MAIN FINDINGS

• Sleepers stand for the biggest group among drop
  outs
• Sleepers seem to be poorer group of clients
• The second biggest group are voluntary satisfied
  lost due to external reasons
• The latter group seems to be richer ones
• Analyzing dislikes and advantages of competition
  the conclusion is drawn that MDF Kamurj
  weaknesses are interest rate, repayment
  frequency and loan size
• Evidently, some people outgrow out off the
  guarantee system and need individual loans

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REASONS APPOINTED BY LOAN PROMOTERS
N196
15
2
20
12
47
6
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DROPOUT PROFILE COMPARISON WITH PREVIOUS WAVE
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DROPOUT PROFILE COMPARISON WITH PREVIOUS WAVE
31
???

• Any operational or strategic implications?
• What are benefits of the dropout monitoring for
  MDF Kamurj?
• What are the costs?
• Is it worth doing it?
• Any ideas how to improve it?