Segmentation and Customer Acquisition Strategies for MNC Providing Mobile Financial Services in Emerging Markets : A study on bKash in Bangladesh

Abstract: Aim: The aim of the study is to investigate the segmentation and customer acquisition strategies that a MNC offers in emerging markets to implement digital financial service.  The core purpose of the study would be to magnify two core research questions: 1 - How do MNCs segment customers to offer MFS in emerging markets? 2 - How MNCs offering MFS implement Customer Acquisition Strategies to be successful in emerging markets? Methodology: The methodology in this study is built on a qualitative method. The authors conducted semi-structured interviews when interviewing the bKash employees and the agents. Furthermore, different articles, publications, newspapers, websites & course books were also followed. Findings and Conclusion: From the results it was possible to conclude that MNCs in EMs follow all the steps of segmentation and customer acquisition examined in the theories. We ought to assume that MNCs providing MFS services in the EMs shall follow the traditional segmentation strategy. Channel strategy shall still be depending on the physical distribution for new customer acquisition. At the same time, customer awareness program, customer and channel education will drive towards a sustainable MFS business. This study can be used as a prescription to implement successful segmentation and customer acquisition strategies similar to EMs, especially in a context similar to Bangladesh. Contribution of the study: Regarding the theoretical contribution, the study introduces a framework that emphasizes a conventional approach to segmentation customer acquisition. It illustrates that a textbook strategy can be efficient. Also, to the practical contribution, physical distribution of quality based on regular training and incentives should be of top priority when selling innovative products, such as MFS, and communicating complex value propositions in EMs. Reflections on the study and suggestions for future research: The study has been done only in 1 successful MNC providing MFS service in one of the emerging countries, Bangladesh. A further study shall be done in other emerging countries especially in sub Saharan African region to validate this study.