Using client feedback
In the past, a lack of choice about alternative options has led clients to accept less than ideal products. As competition increases, however, more MFIs realise the importance of understanding whether their products, services and delivery options address the specific (and varied) needs of their clients. But using standard market research techniques, such as client satisfaction surveys, without considering your social objectives, can lead you to inadvertently ignore the voices of your most vulnerable clients.
For instance, AMK (Cambodia) was receiving feedback from clients that they wanted larger loans. Before considering increasing the loan size, AMK first investigated what the response was in relation to the client’s ‘wellbeing score’. They realised that the demands were not coming from poorer clients, but from wealthier clients. (Note that most of AMK’s competitors had moved in the direction of increasing loan sizes and were focusing on urban areas – with average loan sizes of US$461 compared to AMK’s US$86).
While AMK’s wealthier clients (in relative terms) may need a new product with larger loan sizes, AMK decided not to increase the size of the group loan to make sure that poorer clients in rural areas could be served with appropriate products. To ensure that it is meeting this need while maintaining financial sustainability, the MFI has an ongoing process for regularly monitoring client feedback.
As this demonstrates, you should to be careful not to respond too quickly to client feedback without further investigation, and ensure you meet the needs of your various client segments. Segmenting your portfolio and client profile data will help you do this.