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Specialist Program Feedback & Discussion 2012 Summit

Specialist Program Feedback & Discussion 2012 Summit

Sept 29, 2014

Key Takeaways 2012 Mifos Summit

  • Must improve general awareness of Mifos as a software package for MFIs

    • References from other MFIs are critically important - make their contact info and testimonials readily available

      • Must we create this endorsement engine ourself or should we use something like LinkedIn?

    • Local support is a huge deciding factor.

    • Online searches matter a lot - make sure our SEO counts.

      • Transition news is top search result for Mifos/Mifos.com - FIX THIS.

    • Local conferences for MFIs are another good venue in which to plant the seed of awareness. 

    • Specialists themselves need to know how to properly market Mifos

    • Need to be aggressive in on-the-ground promotion - host local workshops/advertise in newspaper

    • Also need to educate on need to use a specialists and education on open source. 

  • Demand generation

    • Establish relationships with influencers in each regions

      • Microfinance networks & associations, conferences, ministries of micofinance

      • Able to reach hundreds of MFIs rather than one individual one. 

      • Consultant has strong influential opinion - need to promote Mifos within consultant networks. 

      • Donor is driving force on spending on technology - MFIs only spend when donors give them money to.

    • Central banks in Africa (Uganda, Nigeria Ethiopia, etc.) are more influential in terms of software decisions than they are in places like India. 

    • Create a program in which to target the major influencers like the national association and sell Mifos to them.

      • Action: add each of the major stakeholders to our CRM and a have concerted plan to contact each one of them.

  • Exclusivity/Qualification of being a Mifos Specialist

    • Now anyone can say they're a Mifos Specialists - need to make some stand apart. 

  • Initiative Positioning

    • Need to fully clarify the change in paternity from Grameen Foundation to COSM.

    • Remove fear of damaging the Mifos brand (Nayan) like was common in past. 

  • Product Positioning

    • Establish clarity on the target market so Specialist know which features they should be emphasizing to MFIs

    • Improve the first time user experience with product (easy install or simple demo/trial)

  • Pricing Positioning

    • Enormous disparity between willingness of MFIs to pay for technology. 

    • Specialists often must focus on building trust and providing free consulting services before beginning discussion of pricing for Mifos.

      • Conflux has done a lot for free up front but once they've shown their value, MFIs spend on future needs. 

    • Should experiment with bundling of services and software - no commercial versions (this would kill Mifos vision)

      • To offer higher levels of service/software. 

    • Tension between MFIs wanting standard pricing and Specialists wanting to be able to charge a range of prices.

      • MFIs could then just judge on quality

      • Should specify a range of low to high prices so MFIs can have clear expectations and checklist of where services fit.

  • Where COSM can add value

    • Marketing tools

    • Training - Technical training (on-site or virtual) is needed both for Specialists and IT staff at MFIs'

      • MFI IT staff by becoming pseudo-Specialists can provide downstream support to other MFIs

      • Polly: MFIs will pay for training more than software or support - want to invest in their businesses - easier to maintain without external contract.

        • Expectation that MFI will sign a year-long support agreement and cancel it after one year. 

    • Repository of advanced experts that Specialists can contract out when they need additional resources. 

    • For MFIs that aren't ready for a Specialist - provide repository of materials so they can self-support. 

  • Next Steps

    • Specialists qualification program - immediately make this available with the five or six criteria that qualify a specialist

    • Significantly enhance website so Specialists know what they need to do to become a Specialist.

    • Prepare a deck to begin presenting at MFI association meetings.

 

Discussion

Details on Presentation

  • Education on Need to Use a Specialist

  • Education on Open Source

Ideas/Questions

  • Certification of Users - like a certified administrator, certified data entry operator

What help do you need in marketplace? 

From MFI Perspective:

  • Raj in Uganda - not many know about Mifos - need to make it aware to MFIs - software package

  • Where does an MFI go to find out about the software?

    • Through references...through other MFIs, through other technology companies

    • Any new MFI - look for local support - if local support exists, they make decision 

  • Esther:

    • Googled MFI software and found a couple, then looked at website

    • Did own requirements sheet and sent it VasTech - what can you do and not do and sent it to VasTech

      • Went with Octopus because VasTech was local

    • SEO - want to pop up immediately

  • Amit:

    • Feedback from nearby MFIs - need feedback/validation - this feedback is good for sales and all

    • Need to have list of customers so people can reach out to them as references

    • Need testimonials, Multiplicity is priceless

  • Three or 4 local small implementations of Mifos in Jaipur - all trust in Amit.

    • Collect feedback from all MFIs - make it accessible from Google 

    • Need list of references - email address or contact info to speak to the MFI 

From Specialist Perspective

  • Zayyad:

    • Main challenge in East African Market is awareness

    • Specialists don't have an idea of how to market Mifos

    • Very small budget of how to do marketing

    • Other think that anyone can deploy Mifos - no formal specialist program.

      • Even to have an edge of putting Mifos on website

      • i.e. on homepage of Intrasoft - put Mifos as one of the products they offer on website

        • Received a call from a SACCO looking for new software

      • Main challenge is marketing - how best can help. 

  • Amit: Mifos transition is the top news on Google about Mifos shutting down. -- need to address this. 

  • Is it true that MFIs don't know software in general?

    • Indian Microfinance sites - this type of knowledge around Mifos X is not web 

    • Semba had to explain this to his management.

    • Zayyad:

      • Bankers realm very familiar because of large bank installation, Octopus not very common in Kenya

    • From MFI perspective

      • Have conferences where most MFIs meet and share knowledge on common systems being used - mention Mifos in these places - 

    • Microfinance Network Organizations:

      • Need to register with them

        • Octopus has tied up directly with the association in Ghana

    • Raj: Ministry of Microfinance as well 

    • Amit: 

      • Impression they have is download and install  

      • Lacking of specialist - not possible to download and host on their own servers

      • If targeting small MFIs, don't know how to install.

      • Requires a specialist, specialist team needs to be tightened before making any sales

    • Important about presentation of Mifos

    • Octopus is easy to install (OS and Enterprise Edition)

  • Nayan: previously the biggest selling point was the backing by Grameen Foundation

    • Shiva: few financial inclusion orgs that could promote Mifos

      • Basic, Access Development Services

  • Basics: provides access to fund

    • Software - need a corresponding fund as well - want a donor to be promoting a product

    • Lost order to basics

    • MFIs are aware of the funding services

  • MFIs know how to apply funding - spends on technology only when insists on spending on technology

    • Shiva: Driving force should be donor and not the MFI - they would push the spend on technology 

  • Craig: Do Specialist present to the donors?

    • Shiva: was talking to MF network from Ghana.

    • Shiva: tried to reach CARE inda

  • Craig: Is grant open to any technology or is specified to a software?

    • Shiva: Grant is allocated for technology and doesn't specify a vendor - usually MFI just spends it on something outside of technology. 

  • Kazeem:

    • When donor pushes a money for software installation - rely on consultant for advice - consultant has the latitude to say go with this.

    • If donor has a software to promote, they will put that software in there. 

    • Need to promote Mifos among consultant network

      • CGAP IS platform, World Bank Platform

      • Promote Mifos among these consultants

    • To get that funding, just find consultants who would be comfortable deploying 

      • Polly: Easier to get funding from existing partners who have given funding for other hardware

  • Craig: 

    • Is it better to sell to donors and capacity building network rather than MFIs?

    • Kazeem - more leveraged channel would be to have a meeting at GAMFI

      • Concentration of decision makers all in one room

    • Go to Systems Director of Central Bank of Nigeria in charge of 900 MFIs

      • Defer to them for guidance

    • MF Banks in Ethiopia - looking for common system of 900

      • Easier to sit with Dr Waldi

    • Raj: Bank of Uganda for regulation purposes wasn't at all familiar with Mifos

      • More comfortable with systems they always have approval from them.

    • Amit: Fruitseller is not telling he's selling fruit

      • Need to speak loudly from all the channels, tell your story.

      • First need a team of specialists, how you use it, what are the benefits, why is Mifos better than all the other products?

      • If we then speak loudly - what is Mifos

      • Need to generate the interest in the software which is lacking.

    • Polly: CBK had a list of requirements and a list of systems

      • Fact that Mifos was not listed there - disqualifies it automatically, not confident.

      • Amit: need to tell the future of Mifos. 

        • Need to make the specialists capable of selling the product. 

  • Zayyad:

    • Functionalities:

      • Many would not sell it to central banks because current functionalities that do not conform to central banking requirements

        • Accounting functions

        • Audit Trails

        • Stakeholder Reports

      • Once all these are in place - should be able to market to central banks.

    • Raj: central banks play a strong advisory role - if they're not 

  • Kazeem

    • Change paternity of Mifos - Grameen to COSM

      • Redirecting Grameen searches to Mifos

      • Communication of COSM to all users

      • SEO for Mifos & COSM

    • West Africa

      • Trying to promote a common platform - multi-million bid for one hosted application for 900 MFIs

        • Amit: if want hundreds and thousands

          • No mission to reach there - don't have sales team

          • All in summit because we know each other for a long time

          • Amit: offer local sessions for MFIs - put in newspaper so people can join.

          • Call MFIs from local market to be there.

            • Spread the 

    • Arun: realize that Mifos may not be the answer for every single MFI, in every single geography

      • Really understand the target segment

        • Focus on low-cost sort of software for software or do we get into complexities of larger MFI with bigger lines and 

        • Specialists then need to know what they should talk about it when looking to clients.

      • Mifos user conference

    • Shiva: could promote Mifos in magazines

    • Central Bank of Nigeria, Uganda and other African countries could influence many many sales

      • Not as strong in India - not 

Pricing Discussion:

  • Enormous disparity of willingness of MFIs to pay. 

  • Amit:

    • License fee components + upgrades, 

    • First need to sell the product at a lower price to get in the door.

  • How you promote the product really matters. 

    • Amit: doesn't have problem with sharing revenue if he can put his software in good business

  • Craig: can Specialists convince MFIs to purchase their services with no license fee?

  • Zayyad:

    • Do have challenges - big challenge in Kenya is most small MFIs are not willing to spend. 

    • Some MFIs who have no IT budget at all - only have money to lend

    • To try to overcome these challenges, usually measure the requirements, future direction  and consulting even before talking about pricing

      • Do some consulting as a free service to build that trust - give advice on best things should do.

      • Once understand where do you want to take an MFI - pricing becomes last thing - how best do you put Mifos to feature requirements.

    • Zayyad:

      • Pricing is very flexible. No standard fees. Trying to accommodate both small and big MFIs

  • Amit:

    • should have a commercial version and an OS version

      • Zayyad: would kill that vision | Arun wouldn't agree wiht philosophy

      • Arun: every single MFI is spending on technology in general (PCs, internet) - not everything can be open source. 

      • Mifos is one of few things that could be free - there is a budget for hosting, etc. 

      • Arun: looking for constant support available - don't mind paying a little more if something will consistently get resolved.

    • Craig: true in every market, everywhere.

  • Amit: core is free - if I require hosting, service, extension, cost more

    • Commercial version is just a service bundle

    • Can't say commercial - just say bundle

      • Raj: would like to see bundled thing - don't want to run around finding bunches of people

      • For starting out - would rather have complete experience taken care of through one group

      • One third party with all the solutions would ideal

    • On website

      • This is product and if you require support - these are the bundles you can get and who you  can get it from.

   Pricing

  • Kazeem - must look at it from multiple perspectives

    • First it's positioning - should you market it to MFIs without reliable power sources

      • Selling Mifos to them would be a waste of time

    • Should we go to  

  • Pricing - should be openly displayed on COSM website

    • Do comparison between Mifos, BR, Octopus

      • Do the TCO

        • License

          • BR - $1500 per branch.

        • Annual Maintenance

          • 15 - 20

        • Hosting 

        • Implementation

          • Put typical implementation cost

        • Training

        • Other licenses

        • Support - Free and Premium

    • Put this on your website from the start - can largely conceptualize what pricing should be, how we compare with our like competitors  (Tier 1, 2, 3), what they should expect to pay for.

      • Compare the features also really works

  • Raj:

    • Need case studies on the side

    • Kazeem: User Reviews

      • Kazeem: for larger MFIs - quantums, factors that go into decision - pricing only accounts for 15%

        • Technical features, local support is huge in weighing the decision.

        • Price isn't a huge deciding factor. 

    • Raj: perception

      • i.e. SouthWest not competing against other airlines, competing against rental cars

  • Amit: standard pricing. 

    • need to be make it very clear and centralized what specialist are able to charge.

      • Vary from region to region.

    • Amit: don't agree

      • Unique or single price product establishes trust and genuineness 

    • Raj: pricepoint - always a point of traction

      • but if this is a license

    • if price is taken out of equation, can just judge based on quality. 

      • Select based on quality

    • Could have standard price on implementation

    • Zayyad:

      • Standard pricing might work for large MFIs. We are working small enterprises - that is where money is. try to help them as much as possible.

        • Think standard pricing would scare them away.

      • Amit: could create ranges for standard pricing. 

        • Rates are pre-decided for each region.

      • Polly: You should define a range and then have a checklist of the various services must do

        • I.e. data migration 

        • Polly: can use as a marketing point by saying the price is lower than standard price.

      • Kazeem: pricing won't be fixed

        • Could use # of clients or # of branches - make lower or upper limit of five to fifteen %

        • Range or guide for specailists to know.

        • So when two different specialists submit their quotes - there is not such a wide range.

          • Could go back to COSM for 

        • Could part of certification be having a range of pricing

    • Raj:

      • Specialists don't want standard pricing but MFIs would love to have it. 

    • Amit:

      • How do you charge?

        • Size of portfolio and # of clients

          • Amit

    • Amit: like paying per ticket - like with Conflux - clear, transparent, trust.

      • Raj: in Africa would not work, take 2 weeks to do in Africa what it does in 1 hour.

      • Esther: what works in india, europe, america, doesn't work in Africa.

  • Nayan:

    • Do stuff absolutely free - when they have future needs  they are willing to pay

      • Understand the value and then are willing to pay

  • Raj:

    • Involve donor communities in events like this.

      • Donors here to meet them - we are her to meet us.

    • Shiva and Amit: donors are main attraction 

  • Amit

    • CGAP or MIX - put details on how they're growing up

      • Would help users. 

      • Would make it easier to get grants from MF community

    • Submit a new review to Mifos X

  • Technical Training

    • Formal Sales Training would be good

    • Technical Training

      • Would be willing to send

      • Formal product 

    • Online would be use

  • What Shoudl COSM Charge for

    • Marketing Tools

      • Marketing Support should be offered for free 

  • Shiva: Certification only works if there is demand for the product

  • Kazeem: What do next month:

    • Specialist qualification program. 

    • See a list of qualified specialists and regions. 

      • Can see those there

      • List of five or six things they need to be qualified as specialists. 

      • formal 

  • COSM

    • How to make sustainable

    • Drupal: