Lessons from MicroSave's Action Research Programme (2002): Report

This report documents the progress made under the Action Research Program during 2002. It presents:

• MicroSave's package of services;
• The lessons learned from MicroSave's Action Research Program;
• Key questions that should precede starting new product development;
• The selection of its action research partners;
• An overview of results.

Further, the paper summarizes the key lessons learnt by MicroSave during 2002:

• Focus on market-led microfinance;
• Respond to clients' concerns to improve profitability;
• Use focused market research to understand customer requirements;
• Practice strategic marketing to improve corporate image and branding, customer service and delivery systems;
• Develop a commitment to customer service;
• Build a corporate brand to improve the institution's credibility;
• Perform marketing audits;
• Be proactive in risk analysis and management;
• Adopt an institutional commitment to continuous improvement;
• Learn from the formal financial sector;
• Create and build a competent cross functional management team for rapid transformation;
• Maximize the use of client data by mining;
• Ensure product compatibility with existing technology before pilot testing;
• Work financial projections to determine profitability of new product;
• Operationalize product costing process;
• Perform process analysis to improve efficiency;
• Develop strategic collaborations to gain knowledge and to minimize risks;
• Use a systematic approach to roll out financial products/services.

Finally, the paper presents the details of MicroSave's activities undertaken with each of its action research partners.