If measures to contain Covid-19 have hastened the digital future of Saccos/Microfinance permanently, CEOs and Chairmen must be wondering how to measure its success.
To help them out of this predicament, here are 10 KPIs Saccos/Microfinance can use to help them measure the effectiveness of their digital offerings
- Functionality. Mobile applications should enable anything that can be done in person at a branch. KPIs for apps shed light on what works and doesn’t in online interfaces.
- Activity. Tracking — whether daily, weekly or monthly — how customers use a platform can lead to user-experience improvements and positive word-of-mouth.
- Retention. Of course, happily engaged digital-lending customers are also apt to stick around. Your retention rate for digital customers — measured by return business or satisfaction scores from surveys — can tell a tale of engagement over longer periods than measures of activity can usually convey
- Net Promoter Score. Another, arguably wonkier, way to measure long-term growth of your digital-lending operations is an NPS, a way to understand how many of your customers aren’t just happy, but likely to promote services they enjoy to friends and family members. Typically gleaned from surveys, an NPS can help Saccos/Microfinance understand what it takes to turn customers into active promoters.
- Lead Generation. Do your online lending applications introduce customers of one digital service to up- and cross-selling opportunities? Saccos/Microfinance with apps that don’t readily introduce customers to ancillary services may be losing business to other providers.
- Launch and load times. How long does it take your online-lending apps to load at different times of day, especially during peak hours? Ideally, the interval between click and engagement is brief. Online lending customers are notoriously impatient. Unusually, this is a KPI you can measure with a stopwatch.
- Task completion. This is another user-experience metric that measures the rate at which a digital-lending app accomplishes what it’s supposed to for customers. As a KPI, this is a measure of an app’s user-friendliness and ability to deliver.
- Abandonment. This is the flip side of task completion. Slow and unintuitive apps can drive customers away before they’ve finished what they set out to accomplish — apply for a loan, say, or add a new member. In turn, this can create not “net promoters” but active “net detractors.” Just as practically, this KPI can point to services design or technology flaws in need of immediate redress.
- Preference. Understanding how customers feel about online banking as opposed to in-person banking can point the way to more effective communication strategies that take such preferences into account when promoting new or unused services.
- ROI. We’ve already touched on this KPI, but it bears repeating. Anything that sheds light on how expense relates to returns from digital lending will tell a tale of comparative engagement. Here, a relative lack of engagement may hint at customer frustration and a need for better apps, not, as it may be tempting to conclude, a lack of interest in digital lending itself.
Each KPI should be judged on the merits of the insights it brings. They don’t apply in every digital-lending situation, and your Sacco/Microfinance may refer to some that other institutions wouldn’t even consider.
The overriding point is that KPIs can help Saccos/Microfinance understand the value of their digital services.
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Presta’s intelligent SaaS provides you with both a real-time and historical insight into the performance of your lending business. Schedule a personalized demo to see how Presta can help your business grow.