Mobile Money Success | Common Factors.
As a consultant and through my work at Fundamo over the past few years, I have had the privilege to visit and study dozens of Mobile Money/Payments business around the world and one of the questions I always get asked is “What makes a successful Mobile Money/Payments business?” Which is a very broad question, but luckily I now have a fairly refined answer.
From my observations of the market there are two VERY key success factors that have driven success in multiple countries:
- Understand your Market:
The Six P’s of Marketing.
- Understand the demographics of the People.
- Research & Identify Market Traits. Identify the Community Units & Segments
- Sample Test Penetration Activities
- Find engaged local partners and seek to understand: People
- Use the market identification & entry models
- Maintain the Product, tailor the Distribution & Positioning
- Find the ‘sweet’ stop for price
- Price has to be competitive against alternatives, including cash based services
- The best entry points are the community’s source of funds.
- The largest source of funds is labor markets. Also, the employer of the largest p2p opportunity
- Follow Natural Cash Flows and re-apply. Everyone has the potential to use p2p. Majority already do. You just need to understand where the money already flows. Understand the movement of money within a community and its affiliated communities.
- Salary Payments ‘win-win’ for employer and employee. But how do you get salary money to remain in the system?
- Education, Trust & Awareness are key
- Visit & Listen to the communities
- A foreigner learning local language builds a bridge of trust and creditability
- Incentivize entire value chain & reward loyalty
- Look for pain-points in current cash services
- Appeal to the dreams and aspirations of the market, but maintain a perception of attainability
- Work with the community on pilots and proposition testing
One of the most energizing attributes of successful businesses in this space is an incentivized sales team. A team that engages the communities acquires and trains new customers, acts as a face-to-face customer service, works with the community to encourage long-term adoption, but most of all this team are rewarded for success.
- Wizzit’s Wizz Kids wear their shirts with pride as they spend time in the field signing up new customers and training them to use the service.
- WING’s Pilots spend large amounts of time signing up friends, families and fellow students in Cambodia.
- MTN Uganda’s Road Warriors travel across the country under the watchful eye of Dr. Love in pursuit of their daily targets.
- John Owen’s team at MABS are on a continual mission to drive financial services to rural communities on G-Cash in the Philippines.