Microfinance Institution Direct Sales Model

Sample Integration and Scheduling Plan

2012

2

Microfinance Institution (MFI) and Manufacturer (MFR) Key Activities

Demand Generation

Order Collation & Loan Processing

Product/Service Delivery & Installation

Loan Collections

After-Sales Service

MFI Loan Officer

MFI Loan Officer

Sales Agents

Sales Agents

Sales Agents

• Work with key opinion leaders (KOLs) to plan group meetings. • Conduct product/service demonstrations at group meetings. • Build brand awareness through marketing.

Sales Agents

Key Activities Details Responsible Party

• Sales agents visit customers to address use and maintenance issues. This may potentially start a new sales cycle in that village.

• Sales agents generate demand for product/service. • MFI loan officers complete client assessment to make loan approval decision.

• Sales agents deliver the product/service to customer. Have customer acknowledge receiving the product/service by signing official receipt.

• MFI loan officers collect cash from customers at pre-designated times and locations.

Manufacturer

MFI

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Steps in the MFI Direct Sales Process

Step 1 What: Planning Meeting Where: MFI District Office Who: MFI district manager and MFR sales manager When: 2 to 4 times per month Why: • Plan which loan officers and sales agents will work together. • Select target villages. • Address special situations and problems.

Step 2 What: Village Introduction Meeting Where: Village KOL’s home Who: KOL, sales agent When: When sales agent is ready Why: • Establish relationship with local village KOL as he/she will facilitate group sales meetings. • Plan a Group Sales Meeting (Step 3). • Learn about the village’s situation relative to MFR product.

Step 3 What: Group Sales Meeting Where: Village KOL’s home Who: KOL, villagers, sales agent, loan officer When: A few days after Step 2 Why: • To promote MFR product and take orders at the end of the meeting.

Step 5 What: Village Chief Sign-off Where: Village Who: Loan officer, sales agent (optional) When: Same day as Steps 3 and 4 (or next day if not enough time). Why: • To get village chief’s signature as required by MFI forms.

Step 6 What: Latrine Delivery Where: Village (client’s home) Who: Client, sales agent, latrine business delivery person When: 1 to 3 days after Step 5 Why: • To deliver latrine to client. • Have client acknowledge receiving the latrine by signing official latrine business receipt and MFI form.

Step 7 What: Latrine Receipt Submission Where: MFI District Office Who: Sales agent When: As needed Why: • To submit official latrine receipt and MFI form.

Step 8 What: Cash Disbursement Where: MFI District Office Who: MFR owner When: As needed Why: • To collect cash for previous product receipt submissions (Step 7).

Step 9 What: Weekly Sales Meeting Where: MFR Business Who: MFR owner and sales agents When: Beginning of each week Why: • To collect reports. • Pay sales agents. • Conduct weekly sales meetings (recognize results, training, etc.).

Step 10 What: Service Visit Where: Village Who: Sales agent, client, KOL When: As needed Why: • To address use and maintenance issues. • To potentially start a new sales cycle in that village.

Step 4 What: Loan Assessments and Approvals Where: Village Who: Villagers, loan officer, sales agent, KOL When: Immediately following Group Sales Meeting Why: • To complete loan assessment for everyone interested. • To make loan approval decisions and tell client of their approval/disapproval.

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Sales Agent and Loan Officer Time Structure

Step 4 Loan Assessments and Approvals

Step 5 Village Chief Sign-off

Step 3 Group Sales Meeting

Step 2 Village Introduction Meeting

Step 6 Product Delivery

Step 7 Product Receipt Submission

Step 10 Service Visit

• Half day spent on “Group Meetings” (Steps 3-4) with loan officers

• Half day spent on “Preparation and Follow-up” (Steps 2, 5-7, 9-10) NOT with loan officers

2. All sales agents (paired with a loan officer) should do 1 “Group Meeting” (Steps 3 and 4) per day (a total of 4 per week).

3. All loan officers must stay at the “Group Meeting” for the entire duration (Steps 3 and 4) and can NOT leave for any reason (i.e., cash collection at another village or too busy).

4. Any orders (Step 3) that CANNOT be accessed/approved (Step 4) for any reason immediately after the “Group Meeting” should be canceled, and the customer will be informed before leaving the village.

5. The remaining sales agent’s time will be spent doing “Preparation and Follow-up” (Steps 2, 5-7, 9-10).

1. Sales agents days will be divided into half days as shown below:

Step 9 Weekly Sales Meeting

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Sample Sales Schedule Monday Tuesday Wednesday Thursday Friday

MFR Business

Sales Agent #1

Morning Group Meet (LO* #1) Group Meet (LO #1) Prep & Follow-up Prep & Follow-up

Afternoon Prep** & Follow-up Prep & Follow-up Group Meet (LO #1) Group Meet (LO #1)

Sales Agent #2

Morning Prep & Follow-up Prep & Follow-up Group Meet (LO #1) Group Meet (LO #1)

Afternoon Group Meet (LO #1) Group Meet (LO #1) Prep & Follow-up Prep & Follow-up

Sales Agent #3

Morning Group Meet (LO #2) Group Meet (LO #2) Group Meet (LO #2) Prep & Follow-up

Afternoon Prep & Follow-up Prep & Follow-up Prep & Follow-up Group Meet (LO #2)

Sales Agent #4

Morning Prep & Follow-up Prep & Follow-up Prep & Follow-up Group Meet (LO #2)

Afternoon Group Meet (LO #2) Group Meet (LO #2) Group Meet (LO #2) Prep & Follow-up

*LO = Loan officer **Prep = Prepare

Notes: 1) It is important to minimize the number of different loan officers working with each sales agent.

2) The daily order (Group Meet first, Prep & Follow-up second) is not important, just the general structure.

Sample Schedule for Sales Agents and Loan Officers