Focus Group DiscussionFocus Group DiscussionA Product Validation ToolA Product Validation Tool

The FGDThe FGD

A qualitative tool, the FGD will help the user A qualitative tool, the FGD will help the user gather information on what potential clients gather information on what potential clients like or dislike about the features of a new like or dislike about the features of a new product, and what changes are needed to product, and what changes are needed to make the product more acceptable to make the product more acceptable to clients.clients.

To validate the design of a new product, the To validate the design of a new product, the FGD is used after a product has been FGD is used after a product has been designed based on the results of the market designed based on the results of the market survey, and immediately prior to the pilot survey, and immediately prior to the pilot testing stage.testing stage.

Purpose of FGDPurpose of FGD

Gather information on the Gather information on the acceptability to target clients of acceptability to target clients of specific features and policies of a specific features and policies of a product, and its competitiveness with product, and its competitiveness with similar products in the market.similar products in the market.

Identify what specific product Identify what specific product elements may need to be modified or elements may need to be modified or improved.improved.

Selecting the FGD ParticipantsSelecting the FGD Participants

GuidelinesGuidelinesStandard number of groupsStandard number of groups There is no standard number of There is no standard number of

groups or percentage of the client groups or percentage of the client population that should be interviewedpopulation that should be interviewed

How many FGDsHow many FGDs For the product design validation For the product design validation exercise, hold at least one FGD per exercise, hold at least one FGD per branch or per major location the bank branch or per major location the bank wants to reach.wants to reach.

Client characteristicsClient characteristics Choose client characteristics that Choose client characteristics that are most important in defining your are most important in defining your target markets and what you want to target markets and what you want to know.know.

Selecting the FGD ParticipantsSelecting the FGD Participants

GuidelinesGuidelines

Where to draw FGD Where to draw FGD ParticipantsParticipants

Should include both men and Should include both men and womenwomen Should include both urban & Should include both urban & rural clients, if branch will rural clients, if branch will cover both areascover both areas Should conduct FGD by Should conduct FGD by branchbranch Should include participants Should include participants representing the major types representing the major types of business in the target areaof business in the target area

Size of GroupSize of Group Recommended : 8 – 12 Recommended : 8 – 12 participantsparticipants

Selecting the FGD ParticipantsSelecting the FGD Participants

GuidelinesGuidelines

Qualities of Qualities of ParticipantsParticipants

Can articulate specific Can articulate specific knowledgeknowledgeFeel comfortable in sharing Feel comfortable in sharing that knowledge in a small that knowledge in a small group settinggroup settingCan engage in a discussion Can engage in a discussion on aspects of this knowledgeon aspects of this knowledgeCan demonstrate mutual Can demonstrate mutual respect in allowing others to respect in allowing others to speakspeak

Preparing for the FGDPreparing for the FGDStepsSteps ActivityActivity

11 Know the product features, policies and Know the product features, policies and proceduresprocedures

22 Know the population of clients to be Know the population of clients to be interviewedinterviewed

33 Logistical arrangements for conduct of Logistical arrangements for conduct of FGDFGD

• Issue invitationsIssue invitations• Select time convenient to majority of the Select time convenient to majority of the participantsparticipants• Arrange for venue and transportation to Arrange for venue and transportation to the venuethe venue• Plan to offer refreshments or give Plan to offer refreshments or give incentivesincentives

Managing the FGD ProcessManaging the FGD Process

You will need a You will need a FACILITATOR FACILITATOR and a and a RECORDERRECORDER• Facilitator makes the clients feel Facilitator makes the clients feel

comfortable in voicing their opinions comfortable in voicing their opinions in a group environment;in a group environment;

• Facilitator gets everyone to Facilitator gets everyone to participate;participate;

• Facilitator keeps the discussion Facilitator keeps the discussion flowing; andflowing; and

• Obtain the information needed in a Obtain the information needed in a limited time (usually one hour or less).limited time (usually one hour or less).

How to conduct the FGDHow to conduct the FGD

What to doWhat to do

Step 1Step 1 Introduce the sessionIntroduce the session Introduce yourself and the recorderIntroduce yourself and the recorder Ask the participants to introduce Ask the participants to introduce themselvesthemselves Explain the purpose of the sessionExplain the purpose of the session

Step 2Step 2 Warm upWarm up

How to conduct the FGDHow to conduct the FGD

What to doWhat to do

Step 3Step 3 Define the topic for discussionDefine the topic for discussion

Product FeaturesProduct Features What I LIKEWhat I LIKE What I DO What I DO NOT LIKENOT LIKE

Recommended Recommended changeschanges

Borrower CriteriaBorrower Criteria

Loan PurposeLoan Purpose

Loan SizeLoan Size

Loan TermLoan Term

How to conduct the FGDHow to conduct the FGD

What to doWhat to do

Step 4Step 4 Discussion ProcessDiscussion Process

Step 5Step 5 Recording and keeping track of Recording and keeping track of opinionsopinions

Step 6Step 6 Take a break! Serve Take a break! Serve refreshmentsrefreshments

How to conduct the FGDHow to conduct the FGD

What to doWhat to do

Step 7Step 7 SummarizeSummarize

End the SessionEnd the Session Thank the participants. If they need Thank the participants. If they need transportation to go back to their transportation to go back to their place of residence or business, be place of residence or business, be sure that prior arrangements have sure that prior arrangements have been made to transport them back, been made to transport them back, or to refund their transportation or to refund their transportation expenseexpense

Analyzing the results of the Analyzing the results of the FGDFGD

Step 1Step 1 Transcribe the data from the individual Transcribe the data from the individual matrices to the summary of client matrices to the summary of client satisfaction reporting matricessatisfaction reporting matrices

Step 2Step 2 Study the summary of client satisfaction Study the summary of client satisfaction reporting matrices. If a voting was reporting matrices. If a voting was conducted (an optional process), tabulate conducted (an optional process), tabulate the results.the results.

Step 3Step 3 Write the analysisWrite the analysis

Step 4Step 4 Report the findings. Read through the Report the findings. Read through the findings to verify that others agree with findings to verify that others agree with you and to ensure that nothing is left outyou and to ensure that nothing is left out

How to use the DataHow to use the Data

Evaluate whether there is a need to Evaluate whether there is a need to modify any of the product modify any of the product features/elementsfeatures/elements

If modifications have to be made, If modifications have to be made, consider the impact of the same on consider the impact of the same on (1) Risk Management, (2) Cost (1) Risk Management, (2) Cost Management, and (3) Cost-covering Management, and (3) Cost-covering interest rates.interest rates.

Words of Caution!!!Words of Caution!!! Avoid raising the FGD participants’ Avoid raising the FGD participants’

expectations that they are assured of a loan expectations that they are assured of a loan from the bank when it starts to offer its new from the bank when it starts to offer its new loan product.loan product.

Avoid raising expectations that all their Avoid raising expectations that all their suggestions would be adopted. suggestions would be adopted.

During the discussion process, the facilitator During the discussion process, the facilitator or other bank staff observing the process or other bank staff observing the process should not defend the bank’s policies when should not defend the bank’s policies when participants criticize them. Note the issues participants criticize them. Note the issues raised and respond to them after the FGD.raised and respond to them after the FGD.

Client Satisfaction MatrixClient Satisfaction MatrixProduct FeaturesProduct Features What I LIKEWhat I LIKE What I DON”T What I DON”T

LIKELIKEClient’s Client’s

RecommendationRecommendationWhy?Why? % Voting for % Voting for

ChangeChange

Initial Loan SizeInitial Loan Size

Repeat Loan SizeRepeat Loan Size

Loan amount based on capacity to payLoan amount based on capacity to pay

Interest RateInterest Rate

Service ChargeService Charge

Loan TermLoan Term

Contractual SavingsContractual Savings

Loan SecurityLoan Security

Loan Application procedureLoan Application procedure

Collection MethodCollection Method

Penalty ChargesPenalty Charges