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ACCION New Mexico
Scale-up Strategy:
| Reposition ACCION New Mexico (ANM) within the shifting microenterprise market through implementation of the I Choose ACCION action-based marketing program. Critical steps include: |
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Defining target market demographics. Build on previous efforts to better define the demographic and financial “profile” of the target ACCION client.
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Identifying target market geography. ACCION’s key geographies for 2007 are northern, southeastern, border colonias, and the greater Albuquerque area.
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Anticipating the behaviors, attitudes and perceptions that the target market may possess, including being frustrated in the search for capital or anxious about a credit review. Messaging will need to recognize the target market’s concerns and provide a foundation of accessibility and trust.
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Responding to the target market lifestyle. Anecdotally, staff has identified some commonalities of individuals who are homeowners, probably very busy trying to balance the demands of their families and businesses, and who have a short- to mid-term focus on personal and business needs. These individuals likely have a limited financial cushion and are likely to use credit cards or alternative finance options to provide personal cash-flow and fund their business.
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Creating marketing strategies and messages that are responsive to the target market’s core behaviors and attitudes, building on ACCION’s 2007 Marketing Strategy.
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Using feedback and outcomes as a critical component to the new marketing strategy.
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Progress Update as of May 2008:
ACCION New Mexico has made progress on the marketing piece of its scale strategy: |
- Launched I Choose ACCION marketing campaign, which aims to motivate entrepreneurs to “choose” ACCION, and began the process of redesigning the ACCION New Mexico Web site.
- Received market feedback and conducted strategic planning via a two-day off-site stakeholders’ retreat, including clients, board members, staff, community agency partners, donors, investors, federal and state agency representatives, volunteers and lenders.
- Launched three ambassador programs to increase potential client referrals via existing clients, SBDCs and bank partners. In process of developing another referral program with a local credit union.
- Convened a committee to increase organization’s visibility in the market place.
- Conducting a market analysis and feasibility study for expanding ANM’s market into Arizona.
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| ACCION New Mexico also made improvements to its internal operations, while also improving clients’ experiences by: |
- Adopting front-end customer relationship management software designed by ACCION Texas that will enhance client contact management capability.
- Contracting with ACCION Texas to underwrite loans, thereby improving loan processing efficiency.
- Purchasing land in a historic district to build a new office by 2009 that will increase accessibility for clients.
- Entering into a contractual partnership with a management consultant for recruiting, training and retaining ACCION New Mexico staff.
- Continuing to work on creating a sales culture through an incentive-based pay structure for loan officers.
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Background:
Founded in 1994, ANM has reached high levels of market penetration, and has historically been among the highest performers, in the microenterprise field. Recently expanded into larger small business loans up to $150,000. |
| Core Microenterprise Services: |
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Microenterprise loans between $200 and $50,000 |
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Technical assistance to accompany loan products |
| Highlights: |
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Developed bank partnership models which allowed for significant expansion in lending. |
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Established an endowment and a planned giving campaign. |
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Created LLC to allow greater investment in its loan portfolio. |
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Expanded staff and organizational capacity around marketing, underwriting, portfolio capacity and financial management. |
| Current Scale: |
Scale Projections: |
| FY2005: 1,083 clients and 431 microloans |
FY2008: 250 loans |
| FY2006: 920 clients; 92 microloans |
FY2009: 313 loans |
| FY2007: 817 clients; 148 microloans |
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Learning Questions:
Market position: The most critical issue facing ACCION New Mexico is: What is the competitive, defensible niche for microcredit organizations in the shifting market?
Self-sufficiency: What products or services desired by the target market can generate enough revenue to allow significant financial self-sufficiency?
Microequity: What is the market potential for microequity and what lessons have been learned?
Defining the market: Do current definitions of microenterprise constrain the market segment too narrowly? Do we need to expand to other target markets or products in order to achieve scale?
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