Hall of Fame
RECIPIENT
Perspective by John Fleming, Hall of Fame Recipient, 2016
THE SHIFT FROM PHYSICAL TO DIGITAL BRINGS NEW OPPORTUNITIES
M
y perspective on customers is based on my experience as a direct seller and direct selling executive, along with recently conducted study and research to better understand the gig economy phenomena. All point to the importance of channels of distribution that focus on connecting customers with products and services through the influence of independent contractors. Customers are foundational to the success, growth, and sustainability of all businesses. We have always known this. However, a marketplace competing for consumer loyalty and mindshare has resulted in more consumer choices and raised the bar of consumer expectations. We now shop online. Technology provides consumers with the ability to easily research their potential choices and make price-value comparisons in seconds through their smartphones. Consumers can easily check when the product or service will be delivered, and this information factors into most consumer decisions. A Special Moment in Time for Direct Selling Companies Direct selling companies have taken notice and, consequently, are creating opportunities unparalleled to anything we have historically experienced. The shift from “physical” to “digital” allows for a more personal approach to marketing products and services. A direct seller who adds a caring personality to the information and education a customer receives provides added value to a digital platform. Direct sellers can activate digital and virtual contact with a customer at any time and there are no geographical constraints. Personalized presentations can be conducted at 10 a.m. or 10 p.m. and include participants joining from different geographies and
time zones, all able to place their orders while the presentation is taking place. This was never possible in the physically focused world. However, today it is commonplace. The digital world is also more cost-effective, increasing profits and reducing expenses for all involved. This makes direct selling, perhaps, more appealing than ever before. The possibility of aggregating and serving customers without any form of constraint has never been greater or more profitable when analyzing potential return on the investment of time. A virtual home party supported by compelling and exciting digital assets can accommodate more guests than any room in the average home, and refreshments are unnecessary. What Matters Most When Focusing on Customer Acquisition and Retention? Legacy systems can stand in the way of creating new strategies and pathways for the future. New direct selling companies are starting with customer focus at the forefront of growth strategies. Legacy and maturing companies may face more challenges. Investments in technology and the data warehouse— central repository optimized for analytics—must be at the forefront of corporate growth strategies. In the new world of opportunity for direct selling companies and direct sellers, customer segmentation is critical. Customer segments are defined by purchase volume, purchase frequency, and types of products purchased. All new customer-focused metrics must also be segmented by independent contractor and their level of performance. The average number of customers served per active independent contractor is the beginning of dsa-dsj.org
61
