Focus Group Techniques for Microfinance

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Focus Group Techniques for Microfinance

• Regional Experience

Katarzyna Pawlak, MFC May 2002
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Content

• Introduction to Focus Group Discussion Techniques
• Focus Group Discussions Applicability
  Limitations
• Focus Group Discussion Process
• Lessons learnt from the Regional Implementation
  with MFC Partner Institutions

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Focus Group Discussion Brief History
40s Robert Merton Militarys propaganda
films 50s Application in corporate
industry 80s Application in social science 90s
Application in Microfinance (MicroSave
Africa) 00s Application in the Region
(Microfinance Centre) 8 MFIs, 5
countries, 40 individuals trained
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What Is A Focus Group Discussion ?

• People
• Assembled in a series of groups
• Possess certain characteristics

• Provide qualitative data
• In a focused discussion
• Run by a well-trained moderator

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Group Powerful Mechanism
Snowballing
Stimulation
Synergism
Security
Spontaneity
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Why to Use A Focus Group?

• Understanding of the clients attitudes and
  behaviors
• Examination of complex issues
• Complement information from tracked numbers
• Empowerment of clients
• Empowerment of staff
• Quick detailed information
• Relatively low cost

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Topics

• Market exploration
• Reasons for client behavior (drop-out/exit,
  delinquency etc.)
• Clients perceptions of our/the competitions
  products
• Creating new approaches to marketing
• New product concept development
• Product Refinement
• Programme evaluation/Impact assessment, etc.

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Techniques

• Participatory Rapid Appraisal (18)
• Seasonality Analyses
• Lifecycle Analysis
• Product Attribute Ranking
• Relative Preference Ranking
• Wealth Ranking
• Cash Mobility Mapping
• Financial Sector Trend Analysis
• Time Series Analyses

• Discussion Guide
• A set of (4-5) open questions
• Series of supporting questions
• Useful in directing the discussion

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Process
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The Feedback Loop
Information Generation
Information Consolidation
Implementation
Communication
Communication
Analysis
Delegation
Reporting
(Pilot Testing)
Decision-Making
Source MicroSave Africa Feedback Loop Study
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Limitations

• Requires well trained moderator
• Limited control of the moderator
• The results are not necessarily representative of
  what would be population and hence cannot be
  projected.
• An analyst with a particular point of view may
  interpret the thoughts and comments selectively
  to support that view.
• Data difficult to analyse
• Difficult to assemble

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Lessons Learnt from the Region
Beba Vejzovic,Leila Viteskic (Prizma) Selma Jahic
(Partner) Alla Serova (FOR A) Biserka Kljaic
(DEMOS)
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Regional Experience

• Examination of the constraints and stimulus to
  micro-business development
• Development of new products and services to
  increase demand
• Refinement of existing products to increase
  demand
• Development of promotional strategies to increase
  penetration in highly suspicious market.
• Examination of the needs, attitudes and behavior
  of the New Poor to improve targeting
• Development of impact indicators for impact
  monitoring within MIS
• Examination of the reasons underlying the
  desertion problem
• Potential market exploration to expand operations

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Implementation
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Findings Application

• New product development
• Cow loans
• Modification of forms and documentation
• Product refinement
• cancellation of compulsory business training
  component,
• refined guarantee schemes,
• refined requirements for guarantors
• Development of new promotional materials
• Refined product packaging
• Refined physical environment and infrastructure
• Expansion to new area/ non-expansion to new area
• Improved targeting

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What Works?

• Easy to use, user-friendly methodology
• Relevant and practical feedback from the market
  that can be immediately applied
• Quality data that enables decision making
• Empowerment of staff and institution
• Flexible tools that can be used whenever needed
• Client appreciation as they liked to be listened
  to

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Challenges Ways Forward?

• Methodology Adaptation
• Limited Capacity
• Core operations vs. research activities
• Timing
• Moderator with certain qualities
• Much practice, Patience and Reflection required
  to master the tools
• Motivating Staff
• Motivating Clients

• Start Small
• Follow Client Assessment Process
• Use existing information
• Complementary Methods
• Training
• Balance intensity
• Research Person/Team
• Staff Incentives
• Feedback to Staff and Clients
• Contracting Out