How Tech Drove Direct Selling Success During COVID-19 & What’s Coming Next
How the Right Data Has Been Leading Direct Selling Companies to Growth
Today, data has become a modern superpower that drives customer engagement, productivity growth, strategic decisions, and all the KPIs that track the progress of companies, their agility, and their competitive ability. Well-governed data in savvy hands unlock the ability to predict challenges before they arise and optimize every aspect of the business well in advance. Sounds too good to be true?
What most direct selling companies don’t realize is that they already possess this superpower but lack the core skill to turn this power into actionable steps – data literacy. The good news is that this skill gap can be bridged.
Why data literacy is a must for the success of direct selling
Let’s start with a few facts.
According to the McKinsey Global Institute, data-driven companies are 23 times more successful in acquiring new customers as well as 19 times more profitable.
The report by Forrester suggests that businesses with a data-first mindset that leverage data to improve their competitive ability are growing by 30% every year. This is the reason why 80% of companies will roll out focused skill development in the field of data literacy by 2020. It is also the reason why investments in big data and analytics tools are predicted to exceed $200 million by 2020.
Data literacy can be of great help for direct selling companies that want to drive higher business performance and distributors’ engagement. As Bernard Marr, data strategist and advisor, says, “there are likely to be many untapped insights and pockets of productivity, and these will only be uncovered if the right questions are asked by the right people.” This proves once again the necessity of developing data literacy.
Data is at the forefront of successful transformational change. If used correctly, you can “not only analyze what happens but also recognize patterns to determine what could happen,” says Bassam Alqassar, Vice President of Information Systems and Technology at Princess House.
Considering the growing need for data literacy, how can direct selling companies ensure they’re on the data-driven way of developing their business?
How to develop a data-driven company culture
Direct selling companies can use data to improve processes and optimize distributors’ productivity. However, just a handful of organizations know how to use data the right way to drive strategic changes. So how can a direct selling company become data-driven?
- Develop a company-wide strategy to become data-driven.
Research by EY and Nimbus Ninety found that 81% of companies agree that data should be at the very core of running their business effectively. However, they don’t know how to get the hang of it. This is why the first step to becoming a data-driven organization is to define a clear, proactive strategy for embracing data literacy company-wide. Every team member of a company needs to be aware of a common goal as well as be provided with the tools and resources needed to ensure the smooth adoption of a new data-driven strategy.
- Build the right team of change agents.
According to MIT’s research, a strong commitment from leaders to develop data literacy company-wide lies at the heart of a successful business transformation. To ensure that every individual accepts a new strategy, leaders need to clearly and continuously communicate so that effective data governance can influence every aspect of the business, each individual’s success, and every change in strengthening their competitive advantage.
- Start collecting and analyzing data.
To drive positive changes in a company, increase distributor productivity and improve customer engagement, it’s crucial to assess the current state of the business. One of the first steps to embracing a data-driven mindset is to start collecting and analyzing data to see the company’s strengths and weaknesses. This will help to find out whether embedded specific steps bring the desired results and what could be changed.
The process of becoming a data-driven company is not a one-day event, but rather gradual changes that empower people through the right tools to drive business growth. But what are these tools?
What tools help DS companies become data-driven?
An integral part of a company’s data-driven strategy is choosing the right tools that provide real insights into solving everyday issues and optimizing each individual’s productivity. The benefits of data-driven tools, like Rallyware’s Performance Enablement Platform, lie in the ability to turn a pool of accumulated direct selling data into actionable insights to automatically drive every distributor’s success as well as the success of a company as a whole.
Data-driven tools ensure smart productivity growth, continuous engagement, and customer loyalty
Data-driven platforms integrate all the necessary tools that distributors use on a daily basis for an individual’s success. This success is defined by two simple questions: “Is this the right opportunity for me?” and “Am I skilled and motivated enough to use this opportunity?”
Here are three ways data-driven tools help companies achieve success.
- By segmenting distributors.
Thanks to the years of accumulated data fed into the ML-driven system, direct selling companies have a great opportunity to segment their distributors and create a platform customizable to the bone. Why is this so important?
First, it’s necessary to effectively manage a large, globally distributed group of people by taking into account their location, age, language, background and previous experiences. But most importantly: the personal goals of joining a direct selling company. Second, to drive desired behaviors, you have to communicate steps towards success in ways that distributors understand through personalized reminders sent to each individual at the right time. That means that every sent activity is developed for a specific level, be it new recruits or experienced uplines. Segmentation allows companies to distribute the best personalized practices to the right people, adjusting all activities to distributors’ current performance levels.
- By delivering smart onboarding and personalized support.
“Study after study has shown that people who achieve success during their first 30 days stay in business twice as long and sell four times as much over the course of their business,” says Alan Luce, senior managing principal at Strategic Choice Partners. This is why a smooth, personalized onboarding program is a must.
The rule is simple: make distributors’ first steps as easy as 1, 2, 3 or they’ll leave. Each distributor’s performance data makes it possible for the system to send the right activities to the right person at the right time, walking new recruits through their first days and supporting each distributor’s growth throughout their lifecycle with a direct selling company. Starting from a clear understanding of the compensation plan and tips to making the successful first sale to leadership development and best social selling practices, your distributors will get their questions answered right when they need to. Add smart rewards for every win (big or small), and you’ll keep your field continuously engaged and active.
- By predicting customer behavior and their needs.
Well-governed data “in the hands” of smart tools help distributors to hit the right customer with the right offer at the right time and conditions. In fact, as Forbes revealed, companies that adopt a data-driven approach to communicating with customers are six times more profitable year over year. Moreover, they see, on average, a 47% increase in customer loyalty, a 43% increase in new customers, and a 34% increase in revenues.
Data-driven tools analyze customers’ purchasing habits, their interests in products, the time they usually buy products, etc. to predict their future actions. The system sends reminders to distributors to engage with customers when they need it so as not to appear “clingy” or “spammy”.
As you can see, data-driven tools help companies continuously drive the success of every distributor as well as improve customer satisfaction, enhancing their competitive ability and business growth.
Want to drive customer engagement and distributors’ productivity? Talk to our experts to find out how Rallyware’s data-driven platform will help your company lead the industry!
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