1. © Copyright 2003 RBAP. All Rights Reserved. Focus Group Discussion A Group Interview Tool

2. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 2 The FGD A qualitative tool, the FGD will help the user gather information on what potential clients like or dislike about the features of a new product, and what changes are needed to make the product more acceptable to clients.

3. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 3 Purpose Gather information on the acceptability to target clients of specific features and policies of a product, and its competitiveness with similar products in the market. Identify what specific product elements may need to be modified or improved.

4. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 4 Uses of FGD Pre-product design stage Product design validation Product review or operations review

5. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 5 Selecting the FGD Participants There is no standard number of groups or percentage of the client population that should be interviewed. For the product design validation exercise, hold at least one FGD per branch or per major location the bank wants to reach. Choose client characteristics that are most important in defining your target markets and what you want to know. In making your decision on where to draw the FGD participants, consider the following: -Should include both men and women -Should include both urban & rural clients, if branch will cover both areas -Should conduct FGD by branch -Should include participants representing the major types of business in the target area

6. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 6 Selecting the FGD Participants Size of group: Recommended size is 8-12 participants, so that each participant will have a chance to talk and the session can be kept within less than one hour. Choose participants with the following qualities: -Can articulate specific knowledge -Feel comfortable in sharing that knowledge in a small group setting -Can engage in a discussion on aspects of this knowledge -Can demonstrate mutual respect in allowing others to speak

7. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 7 Preparing for the FGD Step 1: Get to know the product features, policies, and procedures. Step 2: Get to know the population of clients to be interviewed.. Step 3:Make logistical arrangements to conduct the FGD session. -Issue invitations and clearly communicate what is expected of the participants; -Find a time that is acceptable to the majority of selected clients; -Arrange for a meeting place and transportation to that place: and -Plan to offer refreshments and/or incentives.

8. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 8 Managing the FGD Process You will need a FACILITATOR & a RECORDER: Facilitator makes the clients feel comfortable in voicing their opinions in a group environment; Facilitator gets everyone to participate; Facilitator keeps the discussion flowing; and Obtain the information needed in a limited time (usually one hour or less).

9. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 9 Materials to prepare for the FGD Colored cartolina cut in 10 x 4 inch size (write down product policies or features bank would like to get clients’ feedback on); Pieces of Manila Paper; Pentel pens (2 pieces) Name tags (or use masking tape to write on name of participant); Attendance sheet (name, type of business, number of years with the bank); and

10. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 10 Questions to ask (Client Satisfaction Survey) What do they like best about the MF product of the bank? What do they like least about the product? What can they suggest to improve the product? How long does it take them to wait for the first loan to be released? How long does it take them to wait for the repeat loan to be released? Are they happy with the service of the bank? In what way is the product helping their families and business?

11. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 11 Conducting the FGD Step 1. Introduce the session. Introduce yourself and the recorder. Ask participants to introduce themselves by stating their name, type and location of business, and where they live. Explain the purpose of the session: -To seek clients’ opinions on what they like and dislike about specific features and policies of a proposed product of the bank -Encourage the FGD participants to be frank and honest about their opinions, and that the bank will value both positive and negative comments on the new product. -Assure participants of the confidentiality of the information – that their opinions will not in any affect their future relationship with the bank.

12. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 12 Conducting the FGD Step 2. Warm up. Begin with a discussion of some other aspects of their life or business. For example, ask what they like and what they dislike about their present business. Step 3. Define the topic for discussion. Give each participant a pre-made card that has on it the name and/or symbol for one product feature (e.g. interest rate, term, loan amount) Show a flip chart with all these features listed. The flip chart should have four columns labeled as follows: What I Do Recommended Product FeatureWhat I LIKENOT LIKE Changes Borrower Criteria Loan Purpose Loan Size Loan Term

13. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 13 Conducting the FGD Review each item with the group to make sure that everyone understands the meaning of the product feature to be discussed. Step 4. Discussion Process. Start with the first product feature on the list. Ask the person holding the card containing this product feature to share his/her opinion (Like or Dislike, Why) about the particular feature of the product. Ask other participants holding the same card to share their own opinions on the same product feature, as may be necessary. When the cardholders have given their opinions, open the discussion to the entire group.

14. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 14 Conducting the FGD Step 5. Recording and Keeping Track of Opinions. A Recorder should document the group’s recommendations and comments using the Reporting Matrix. If flip chart is not available, the Recorder must be sure to write down everything that is said, and provide feedback to the group by reading what he/she has written to confirm its accuracy. Ask the cardholder to indicate whether there are any aspects of the product feature in the card that he/she likes, and if so, to identify what these are. Recorder should list these “likes” in the appropriate column on the flip chart. If another person has the same card, ask the person the same question. Write the response on the appropriate column on the flip chart.

15. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 15 Conducting the FGD Invite those with the same cards to give their own comments. Open the discussion on the particular product feature to the entire group. ASK: Does everyone agree with this suggestion? Does anyone have a different idea? Continue with the same process for each card distributed and until all program features on the list have been presented and discussed. Step 6. Take a break! Serve refreshments. Step 7. Summarize: Summarize the conclusions for the group as you heard them. Ask if anything was left out of the summary. Thank the participants for their time. Stress that their opinions are highly-valued by the bank and would be used by the bank in reviewing and further refining the features of its product.

16. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 16 Option: Nominal Group Voting Process An optional step to determine how many people agree to a certain suggestion or recommendation Applicable if more than one group is interviewed, with a significant number of total interviewees Because information gathered at the FGDs may affect program design, management may want to know exactly how many from each group interviewed voted for a certain recommendation.

17. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 17 End the Session Thank the participants. If they need transportation to go back to their place of residence or business, be sure that prior arrangements have been made to transport them back, or to refund their transportation expense.

18. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 18 Analyze the Data Step 1. Transcribe the data from the individual matrices to the summary of client satisfaction reporting matrices. Step 2. Study the summary of client satisfaction reporting matrices. If a voting was conducted (an optional process), tabulate the results. Step 3. Write the analysis. Step 4. Report the findings. Read through the findings to verify that others agree with you and to ensure that nothing is left out.

19. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 19 Use the Data Based on the information gathered, evaluate whether you need to modify any of the product elements. Remember, that product features and policies are based on a variety of factors that clients do not always know about or understand, such as risk management, cost management, and cost-covering interest rates. The bank, therefore, may, in certain cases have a very good reason for not adopting the changes recommended by the FGD participants.

20. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 20 Words of Caution Avoid raising the FGD participants’ expectations that they are assured of a loan from the bank when it starts to offer its new loan product. Avoid raising expectations that all their suggestions would be adopted. During the discussion process, the facilitator or other bank staff observing the process should not defend the bank’s policies when participants criticize them. Note the issues raised and respond to them after the FGD.

21. © Copyright 2003 RBAP. All Rights Reserved. Product Validation Tool: Focus Group Discussion 21 Client Satisfaction Matrix Product What Clients What Clients Clients’ % Voting Features LIKE DISLIKE RECCOMENDATIONS WHY? For Change Initial Loan Size Repeat Loan Size Loan Amount based on capacity to pay Interest rate Service charge Loan Term Contractual savings Loan Security Loan application procedure Collection method Penalty charges