Lessons from Pilot Testing Financial Services: The Experience of MicroSave

Publication Date: Jun 2003
Published by: MicroSave
Document Type: PDF

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The “how” and “why” of pilot-testing financial services and products

This paper presents key lessons from MicroSave’s experience in pilot testing new financial services and products with its Action Research Partners (ARPs). The pilot testing process, as defined by MicroSave, has ten distinct steps:

• Composing the pilot test team;
• Developing the testing protocol;
• Defining the objectives;
• Preparing all systems and reducing delays;
• Modelling the financial projections;
• Documenting the product definitions and procedures;
• Training the relevant staff in the features of the new product - its processes and procedures, in customer service and in marketing;
• Perfecting the product marketing;
• Reviewing the adequacy of the preparations before pilot tests;
• Building the evaluation of the test on regular monitoring and adjustments.

Finally, in its frequently asked questions section, the paper lists four fundamental questions:

• What impact has pilot testing had on the ARPs? - The paper noticed three major impacts on ARPs:
  • Development of core competencies;
  • Transition to customer-centric organizations;
  • Enhanced corporate image.

• Does pilot testing reduce costs? - The paper noticed that pilot testing reduced the costs of making mistakes.

• What challenges do single product microfinance institutions (MFIs) typically face in pilot testing new products? - The challenges noted for single product MFIs ranged from lack of experience in product development, to changing to a customer-focused, market-led approach.

• Should new products always be pilot-tested? - The paper suggested three situations in which the pilot-testing process can be omitted.