Institutionalizing Market Intelligence: An Important Step to Becoming a Client-focused MFI

This paper presents the process and key factors of market intelligence institutionalization, based on action research work undertaken jointly by the Microfinance Centre (MFC) for Central and Eastern Europe (CEE) and the New Independent States (NIS) and its Armenian partner microenterprise development fund (MDF)- Kamurj.

The paper elucidates that market intelligence is one of the elements needed for being a client-focused organization. It discusses the generic steps of institutionalization of any new initiative:

• Preparation that includes:
  • Institutional assessment;
  • Action planning, including risk analysis.
• Development that includes:
  • Developing concepts of tools;
  • Testing and revision of the tools.
• Implementation that includes:
  • Setting up all necessary processes;
  • Integrating into existing processes and structure.
• Use that includes:
  • Data collection, analysis and reporting;
  • Incorporation of results into decision-making processes.
• Revision that includes:
  • Evaluation of the market intelligence tools;
  • Preparation to refine market intelligence tool.

The paper presents five factors that contribute the most to market intelligence institutionalization:

• Setting goals;
• Getting staff buy in;
• Integrating and communicating;
• Establishing learning culture;
• Ensuring constant improvement.

The paper then attempts to evaluate market intelligence institutionalization impact on the institution and its clients in the following areas:

• Organizational development and growth;
• Changes in product offerings;
• Client satisfaction and loyalty;
• Staff satisfaction.

The paper concludes that institutionalization of market intelligence is an investment and is an iterative process.