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How a Top-3 Network Marketing company achieved a +22% sales increase due to Cotano

A story of an industry leader who broke the downward trend and made a breakthrough in 3 months

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Oleg VolodinCo-founder & CEO

Marketing incentives and salespeople motivation no longer led to revenue growth

The long-established company, a pioneer in Network Marketing, historically demonstrated incredible growth year over year but in the last decade, revenue growth slowed while the rest of the market steadily grew.
Unfortunately, we are unable to indicate the Company Name or explicit numbers. However, you can imagine how things were going because the company was facing a dramatic increase in the churn rate, reaching 40% with recurring customers

It was clear that the only way to stop losing customers was to radically improve the retention process.

The company’s executives tried to solve the problem as they did before by motivating salespeople and spending plenty of money on marketing incentives to motivate clients to make purchases. Despite all those attempts, the decline continued.
To stop the fall, VP of Sales started searching for digital solutions to track and analyze field sales activity in order to optimize the sales process. One of the colleagues from the Network Marketing industry advised him to try Cotano. He contacted us and we agreed to start a pilot in several territories.

The project wasn’t going as expected...

Managers enthusiastically accepted the idea and motivated salespeople to attend the webinar and discover the brand-new tool. However, after a week, only 1 out of 50 salespeople kept using Cotano.
We started coaching and motivating salespeople to use our app, but that wasn’t working. Fortunately, we still uncovered a way to engage the field sales (we will describe it in the next paragraph).
Since then, we’ve been using this approach to achieve a 65%+ user retention (while the norm in the CRM industry is less than 25%).

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The tipping point

The biggest obstacle was that salespeople managed their contacts with pen and paper or received it in Excel spreadsheets. Moreover, every salesperson managed the Excel tables in his or her own way, making it difficult to create a universal import tool.
Being a startup, at that moment, we didn’t have enough manpower to tackle such a task but we finally collected ourselves and went on a 24/7, type till you drop, SCRUM sprint, and presented a solution to the salespeople.

After salespeople received the solution of their biggest problem, the company experienced a 4X increase in salespeople activity within the application.

The app users began to share their experience with other salespeople, even with those who were outside the target regions - the number of users turned out to be 12X more than expected (300 pilot users turned into 3500 users!).
We didn’t stop there and continued to research. During the pilot, we constantly updated our app with releases, newly featured updates, and improvements, e.g.:

    Personalized WhatsApp/SMS/Email message templates designed by the marketing team in HQ;
    Smart auto-reminders for when customers were about to finish their supply of previously purchased products to avoid customers’ migration to a competitor’s product - here's how it works on the example of Avon:
    Notifying salespeople about their customers’ birthday helped salespeople not miss out on the opportunity to offer a birthday gift or discount;
    One-click filtering by favorite product, age, incentive, and integrated eCommerce data, to swiftly provide relevant offers to customers;

Due to these and other improvements, the number of weekly active users grew tenfold until the end of the pilot.
The active usage and high adoption rate helped executives to gather and analyze previously unattainable data, such as how many prospects were touched per day:

The results exceeded everyone’s expectations


The Network Marketing company's analysts recorded that the salespeople who used Cotano app outsold their colleagues by 22%, which means an increase in sales, in the millions, while scaling all over the country.
At the end of the pilot, the users from the territories that used Cotano showed comparatively a much greater growth in Net Sales than the users from the control territories who did not use the application.

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We then launched an anonymous questionnaire, to find out how salespeople themselves assess the contribution of Cotano towards the effectiveness of their work.
Analysis of the responses indicated that 54.5% of salespeople considered Cotano to be the main factor influencing their results.
As a next step, the company’s executives emphasized that Cotano is the ultimate solution not only for the origin territories but also for large markets with low field sales engagement.

P.S. If you'd like to learn more, we're happy to share with you more details on these and other success stories. Click here to to discuss how this approach might work for your company.