The cost-effectiveness of social performance assessment: the case of Prizma in Bosnia-Herzegovina
were developed and how much this process cost. It then goes on to discuss how possible improvements in client retention would affect the profitability of Prizma's joint enterprise loan, based on figures for average loan cycle profits. Reductions in the client drop-out rate of 50, 25 and 10
per cent are modelled, demonstrating that even modest improvements in client retention have substantial effects on profits, and easily cover the cost of the client assessment tools.