Financial institutions serving the poor can offer a range of savings, insurance, and even nonfinancial products in addition to their core credit products. Bundling these products into one packaged sale can be a cost-effective distribution strategy and a means to differentiate the provider’s offering by its added value to clients.
This Working Paper addresses qualitative research on how microentrepreneurs approach, decide, and act on key business and financial management issues.This report provides a comprehensive summary of the objectives of the research, the behavioral methodology used for the qualitative research conducted in India and the Philippines, and key findings on how microentrepreneurs manage their finances.
Rapid expansion in the microfinance sector has been credited with advancing financial inclusion in India. This paper addresses what might constitute a loan mis-sale and seeks to inform the use of suitability guidelines for lending to low-income households by microfinance institutions, self-help groups, and various banks.
Customer centricity allows organizations to better serve customers and solve the most common business challenges of acquisition, retention, and expansion. The CGAP Business Challenges Booklet offers guidance on how to overcome these three issues and shows how organizations have moved beyond them.
Financial service providers have a great opportunity to create value by designing and delivering customer experience based on a granular understanding of needs. The CGAP Customer Experience Toolkit equips organizations to create empowering customer experiences.
Financial service providers have traditionally categorized low-income customers into a single market segment. The CGAP Customer Segmentation Toolkit is designed to help FSPs identify subsets of customers that have common needs, interests, and priorities – then design and implement targeted strategies.
Generating greater value for customers is good for business. Research from a developed market context has found that customer retention leads to a decrease in operating costs, while a decrease in customer satisfaction leads to a decrease in return on investment.
Customer centricity provides significant opportunity for financial inclusion service providers to tackle and overcome the very real challenges that threaten their organizational sustainability and growth.This Brief touches on lessons learned about customer centricity in other industries.