MLM & Direct Sales

The Cotano-effect - 4% sales growth in MLM company

Success in one of the world's largest MLM giants

Alex Stepenko

Jan 11, 2019 | 6 min read

Cotano-effect

Cotano’s cooperation with one of the world’s largest MLM giants began in the summer of 2018. In September, Cotano launched as the main sales application with an official pilot project, in several territories. The project was designed for a 2 month period and its main goal was to ensure sales growth. According to the results, the company’s analysts recorded a significant increase in revenue in the areas allocated for the project, Cotano was recognized by the company as the reason for such a result.

Test progress

At the beginning of the test period, we observed a rather weak growth in user involvement in our applications. Numerous analysis of users data didn’t provide any valuable insights into the cause of such a slow user acquisition. But, as they say: he who seeks will always find!

The idea that later led to the “wow!-effect” was born in the mind of one of our “early-adopters”. We quickly organized a brainstorm, phoned our users, drew up a plan for the implementation of features and, in the shortest possible time, released the newly added feature. The effect exceeded all our expectations!

The idea itself was to integrate our application with the company’s daily reports which were previously sent to sales representatives via Excel. We finally found the biggest pain that bothered our users - inconvenient and fragmented data for daily work, which needed to be downloaded from different places, difficult to process and almost impossible to use on a smartphone. On the basis of Cotano, we have developed a special module that gave users:
- a single platform for work;
- the most convenient visualization of their sales funnels;
- daily update with the full set of operational data;
- an extended set of communication tools;
- easy filtering for finding the necessary contacts and information about them;
- constant access to the necessary data in just a couple of clicks;
- and most importantly - mobility, which made it possible to work at any convenient time and place!

After this integration, a month later we received a fourfold increase in the activity of our users in the application, and at the end of the test, the WAU indicator increased tenfold.

We did not stop there and continued our research. During the test, we constantly updated our app with releases and new featured updates and improvements that multiplied user value: integration with instant messengers and template messaging, smart reminders, etc.

Extremely important points were the speed of development and high-quality technical support. “Development” continued both day and night, and “support” answered within one minute and 24/7.

Results

At the end of the test, the users of the territories that used Cotano showed a comparatively greater growth in the main indicators of sales efficiency than the users of the control territories who did not use the application and were similar by the MLM company’s basic selection criteria.

The MLM company analysts recorded an increase in sales of 4%, which was directly related to the use of our application. When scaling all over the country, growth was predicted, which in monetary terms would have six zeros.

In turn, we operated on the data that was available to us, and found a close connection between the activity in Cotano and the activity in sales (Fig. 1).

Activity in Cotano & Activity in sales

Fig.1. Comparison of average activity in the application and % of the activity in sales in the test territories.


In addition, a close relationship was observed between the growth of activity in the application and net sales in test territories (Fig. 2). 

Illustration

Fig. 2. Dynamics of activity in the application and net sales in the test territories.


In order to confirm the data of the dry analytics, a comparative analysis was done using the obtained user performance indicators, for the test period, compared to their figures from the previous year. As a result, users of the test area increased sales in 2018 by 3% more than in 2017.

The difference in the results of our research and the company’s MLM research was predictable and was explained by differences in analytical approaches, but despite this, in both cases, the fact that Cotano had an effect on sales was confirmed - in our analysis - 3% growth, in company analysis - 4% growth.

We did not stop there and launched an anonymous questionnaire, in order to find out how salespeople themselves assess the contribution of Cotano to the effectiveness of their work. Analysis of the responses received indicated that 54.5% of users consider Cotano to be the main factor influencing their results.

Conclusion

Thus, the results of the pilot project in the two test areas were found to be positive. Users gladly accepted a new mobile tool, which increased the growth of their sales by an average of about 3-4%. Cotano is a powerful “painkiller” and allowed users to solve problems more efficiently and remove barriers that prevented them from increasing their sales.

We called this growth the “Cotano-effect”))) and are actively preparing to scale for the whole country!