The Systematic Product Development Process

This paper studies product development for microfinance institutions (MFIs), as promoted by MicroSave. The briefing note provides an overview of market research and prototype development process. It suggests a systematic approach to product development in order to:

• Minimize the risks;
• Maximize the information for MFIs;
• Optimize the product for the clients in the market and the institutions offering it.

Further, the paper lists the steps in the product development process, which include:

• Evaluating institutional capacity and preparing to undertake product development;
• Conducting market research;
• Defining and finalizing concept/prototype design;
• Designing, monitoring and evaluating pilot testing;
• Preparing for product rollout, installing and testing systems, finalizing procedures manuals, developing marketing materials, training staff etc.

Finally, the paper states examples of several toolkits developed by MicroSave:

• Market research microfinance toolkit helps MFI staff gain skills needed to understand their clients' perceptions, needs and opportunities;
• Costing and pricing financial services toolkit enables MFIs to develop profitable products and credible financial projections;
• Planning, implementing and monitoring pilot tests toolkit assists MFIs to plan and establish a pilot test for the product;
• Product marketing strategy toolkit helps MFIs to define product benefits to customers and in communicating the product to staff;
• Product rollout toolkit for expanding a tested product throughout the market provides practical tips and checklists to assist MFIs with all the aspects of the rollout process.