ACCION International | Boston | Washington, DC | Bogota | Bangalore | Accra | Beijing |

Building Sustainable, Commercial Microfinance Programs

Market Intelligence for Microfinance

• Recognize customers and market perception to
build brand awareness and image;
• Better understand desertion and delinquency, and
improve client retention.
ACCION’s Experience
ACCION has delivered market intelligence to many
internal and external clients, ranging from studies in
a specific country for a specific product or service—
such as housing or customer service—to more
complex, multi-country studies involving different
products, such as remittances, urban individual credit
and rural credit studies. Following are the market
intelligence’s modules:
1. Market assessment: The market assessment
includes market analysis for new microfinance
entrants or current actors who want to deepen
their market reach. In addition, comprehensive
analyses of secondary sources as well as qualitative
and quantitative primary market research
are performed. The resulting outcomes help
support strategic business planning. Contextual
information, competitor mapping, consumer needs
and attitudes are taken into account to segment
the market, to outline the potential market size
and to provide market opportunities according to
institutional competencies and objectives.
2. Value offer evaluation: To develop or improve
specific products or services, this technical
assistance focuses on understanding consumers
in-depth—including their purchasing behavior and
usage patterns, decision-making processes, critical
values, attitudes toward the product offering and
levels of satisfaction. The outcome will address the
feasibility of cross-sell plans, retention strategies
and customer satisfaction, among others.
3. Market segmentation: Given the vast
population in the low-income market, more
In response to the changing and increasingly
competitive environment in the microfinance industry
and the necessity to grow, microfinance institutions
(MFIs) require extensive market data and intelligence
to make investment decisions, develop sustainable
competitive strategies and position themselves
effectively in the market. Given these challenges, MFI
executives are increasingly aware of the importance of
market intelligence (MI), and many are adding it to
their core competencies.
It is important to distinguish between market research,
which refers to the information gathering portion
of the larger market intelligence process, and market
intelligence, which collects and integrates market
data from secondary and primary sources that is
then analyzed in an objective fashion. Of particular
importance is the way the data is collected and
analyzed given the microfinance context and the
market in which the MFI works.
ACCION is trying to help the industry evolve from research
to strategy: The first step in developing successful
business and marketing plans is to carry out market
intelligence efforts. The MI team works closely
with planning teams or project managers to support
developing strategic recommendations or action plans.
Benefits to Microfinance Institutions
(MFIs)
Specifically, market intelligence is needed to:
• Penetrate new markets and deepen reach in
existing ones;
• Understand customer behavior with regard to
financial services, and identify customer priorities;
• Identify market segments in the vast low-income
market;
• Refine existing financial products and introduce
new ones;
ACCION International | Boston | Washington, DC | Bogota | Bangalore | Accra | Beijing |
Building Sustainable, Commercial Microfinance Programs
segmentation variables are needed to describe
and focus the target market; the labels “women”
or “informal microentrepreneurs” are too general
as descriptions, given the market focus needed.
Market segmentation helps MFIs identify each
segment’s attractiveness so they can combine
this understanding with the MFI’s relative
competitiveness, ultimately enabling the MFI
to provide a relevant product offering. This is
often performed as the first step in a strategic
planning process. To perform market segmentation,
ACCION uses a systematic process with advanced
qualitative and quantitative techniques such as
consumer-belief dynamics, cluster and discriminant
analysis to construct groups of segments.
4. Market research (MR): ACCION provides
support to MFIs, project managers and companies
who plan to carry out MR in the low-income
markets with advice and supervision in any of the
MR phases.
- Definition & Preparation: Research focus
establishment
- Design & Planning: Determine which market
research tool is most appropriate to solve
the problem the MFI is facing; set terms
of reference for MR firms and proposal
evaluations.
- Implementation: Use the right tools and
techniques—both quantitative tools, such as
surveys and statistical analysis, and qualitative
ones to understand consumer-buying behavior
and ensure high-quality, reliable results
- Analysis & Integration: Offer recommendations
on the appropriate approach to carry out the
analysis of outcomes
Contact Us
For more information about ACCION’s market
intelligence program, please contact:
Jacqueline Urquizo
ACCION International
1401 New York Avenue
Suite 500
Washington, DC 20005
Tel: (202) 393-5113
Email: jurquizo@accion.org