1. SOCIAL PERFORMANCE MANAGEMENT Collecting clients data for enhancing client satisfaction and retention

2. Challenge Addressing client dissatisfaction with product features – a client exit survey (undertaken in 2007) showed that 42% of respondents showed dissatisfaction with product features. Another exit study undertaken in 2008 revealed that 34% of the respondents had left due to bi-monthly installments and 43% had left due to bi-monthly meetings and group/center responsibilities.

3. Key aspects which were creating the need for the process change Self selection by clients and pipe lining of loans across groups/ within groups Group responsibility Weak loan appraisal- one size fits all Weak Client/ Loan Officer relationship Lack of transparency and confidentiality Impact of loan was difficult to gauge

4. Solutions 1/2 1) Moving to Individual Lending Methodology Working with families rather than groups Understanding individual business cash flows and linking loan sizes to client needs and repayment capacity 2) Capacity Building for Clients Building clients skills for better business management through financial literacy, business and technical trainings Enhancing clients knowledge about organization‘s CPC policy 3) Build Staff Capacity Continuous Staff trainings/Refreshers for creating buy-in and ownership for the changed processes. Introducing and training all staff on customer protection code and social performance management. Developing the staff accountability matrix.

5. Solutions 2/2 4) Develop and strengthen customer feedback system Establishing centralized customer service desk with a toll free number Installing client complaint boxes in all field units Introducing the Women Entrepreneurs Council 5) Post disbursement Checks Ensuring loan utilization thorough post disbursement loan utilization checks Compliance checks by independent team with direct reporting to MD Continuous monitoring of CPC at field level 6) Develop Social performance Dashboard Mapping social performance regularly and KPIs are part of each staff members job description

6. Results 98% loans utilized in businesses which were identified as the purpose of obtaining funding at the time of client assessment. Client retention rate maintained at 70%. Net promoter ratio is at 99% According to client survey 2014, 98% Clients expressed satisfied with products and services CPC violations reported 0.02% during the year PAR over 30 days is less then 1% which indicates a strong credit assessment/appraisal mechanism as well as client’s business understanding. 1 st Smart certified MFI in Pakistan on CPP. Greater Impact on clients with better assessments.

7. Conclusion At Kashf Foundation we believe that Client Satisfaction is a continuous endeavor and requires close contact with not only the clients changing dynamics but also the impact of external forces on their ability to sustain. We constantly critique our services and processes to make them more efficient, client friendly as well as ensuring that our intervention results in true transformation of the client.