How do they use money?
Monique Cohen, founder-president of Microfinance Opportunities, says that the key to designing appropriate products for clients is a much better understanding of how they use money. “If you understand the temporal flow of money and spatial flow and the networks in which these transactions are made,” she says, “then you can understand how you can develop a financial product that will support them and the behaviors with which they feel most comfortable and which will serve their greatest interest.”
What do they know about your products and services?
Cohen also warns that clients may need clear explanation of how new products and services can bring increased value. Cohen states,
I think we make a lot of assumptions about what clients know and don’t know about products and services. We assume that if you present the product, the person will use it, will know how to use it, and will figure out why it is good value for them. And, we offer very limited explanations. We tend to tell people how the product is going to be delivered rather than the attributes [of the product] and why it would add value to them. Most people learn how to use a product by trial and error, and frequently because they have limited information, they make wrong judgments or they make judgments that don’t serve their own personal self-interest. But in the absence of any appropriate information it is trial and error.
Photo Credit: Monique Cohen
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Table of Contents
- Executive Summary
- Reaching Fewer
- The Promise of Mobile Technology
- The Psychology of Scarcity
- Developing Appropriate Products
- Conclusion and Recommendations
- Get Your Copy