A Key to Success for Direct Sales Companies in 2021

Direct sales together with other business models related to selling campaigns were significantly affected by the pandemic realities. The main channel of sales that requires face-to-face appeal became far from efficient, so many companies had to reconfigure their strategies with a switch to online practices and finally start their digital transformation according to our latest direct sales industry overview.

Distributors managed to settle into the pandemic reality with the need to shift their focus from traditional solutions to the digital approach. Digitalization brings high-performance rates even under conditions of the COVID-19 and post-COVID direct sales market.

Pandemic Forces to Reconfigure Traditional Direct Sales Strategies.

Source: Harvard Business Review

The implementation of digital solutions for this business model kicks into high gear. A couple of years ago digitalization was not so speedy. But now distributors can digitize their selling channels, get an imposing online presence rather faster.

Online Is All About Numbers

Today’s distributors use different online approaches to represent their business successfully in 2021. Among the most popular and efficient digital channels for direct sales this year are:

  • Facebook communities;
  • Advertising on the Internet;
  • Blogs and guest posting;
  • Webinars and online workshops;
  • Online meetings and product presentations, etc.

The efficiency of the selling campaign is estimated in clicks, likes, and other metrics on the Internet activities now. The direct sales players try to get more reposts to get desired media outreach. The more people are attracted to your publications, online events, and other arrangements, the more sales, and income you will get finally. This is a new rule for 2021.

The Instagram Account of Avon. Source: Instagram

The efficiency of digital channels really matters. But it is not only about customers’ attraction. Online activities and marketing campaigns should bring clients but the task of direct sales players to make their purchase funnel perfect. Usually, potential customers are lost at the very top of the sales pipeline. This phenomenon can be explained with irrelevant sales process management.

You Can’t Manage What You Can’t Measure

To drive revenue, you need more willing customers. But what to do not to lose potential purchasers and bring them through the sales funnel? Communication with clients is the essential aspect of direct sales. Even if personal interaction is replaced with online communication, distributors should know well how to:

  • Retain clients;
  • Activate customers;
  • Reactivate purchasers;
  • Determine the client’s status.

Most salesmen have no idea how to do these activities and how to analyze any stage of this process. Without accurate measurements, it is difficult to manage your purchase funnel at all.

Some top managers of the direct sales companies are sure that training, workshops, and other in-house events can fill gaps and improve the general picture. Internal systems can bring some positive effects when it comes to the purchase funnel losses. But most of the challenges will stay unsolved:

  1. The way to get more efficient sales provided by distributors during the shortest time interval.
  2. The best way for the direct sales leaders on how to monitor and manage their downlines.
  3. The way to provide newcomers with a smooth start and onboarding with constant monitoring of their performance.
  4. The way to raise the bottleneck and take it away from the purchase funnel in a timely manner.

If these challenges stay unsolved, so how to close these critical questions? There is a digital solution for direct sales that is required in the 2021 reality.

Analysis is a Critical Aspect of Direct Sales Digital Strategies.

Data-Driven Distribution is the Key

Digitalization is always about new tools and solutions for direct sales. It is proved that the implementation of innovative algorithms, software, and other solutions can force sales growth from the first days. The Cotano dedicated team observes changes for the better in the sales and sales-force field first-hand.

A Key to Success for Direct Sales Companies in 2021

The Cotano Sales Automation Software

The sales automation and acceleration software allow direct sales distributors to automate the part of the purchase funnel and determine the customer’s status according to this sales pipeline automatically as well. This software is also helpful when it comes to other tasks that can be solved with the data-driven approach:

  1. To know how fast the downline progresses in direct sales.
  2. To understand how the new salesmen sell and direct customers through the purchase funnel.
  3. To monitor distributors’ activities (their massages, scripts, motivation).
  4. To determine hung-up downlines and help them to cope with difficulties.

Additionally, the direct sales regional managers are able to keep track of their salesmen. It is the best way to overcome any challenge. The reaction will be rather quick that sometimes is very critical for revenue. Among other advantages are the back-office connection that is essential for the development of the direct sales company and data harvesting.

The back office implementation makes it possible to analyze the sales of one or several distributors of interest. This is the way to gather actual data for accurate sales forecasting:

  • According to the type of the product;
  • According to the qualification of the selling team;
  • Other parameters at the user’s request.

To sum up, data-driven distribution and sales automation software using is the evolution of direct sales with an absolutely new approach that will bring successful results to direct sales companies not only in 2021 but next 5-10 years too.