Direct Sales Guides: Digital Transformation

Direct sales Digital Transformation

Digital transformation is the top priority of most business projects nowadays. It covers a big number of processes including transactions, interactions with customers, analytics, etc. Digital transformation is available for almost all present-day business areas in the context of their technological evolution. 

Direct Sales Digital transformation

What Is Digital Transformation?

Digital transformation is about the smart integration of innovative technologies and competencies across all the stages of the business strategy. It means that digital practices and solutions replace traditional ways of doing business and marketing. For example, more and more companies switch to digital channels with faster and better interactions instead of:

  • Printable advertising;
  • Paper documentation flows;
  • Traditional customer desks;
  • In-store retail processes;
  • Billboard promotions, etc.

Cloud computing, AI technologies, big data, IoT, and other technologies are used to implement customer-centric approaches in different business areas. Loyalty club cards are replaced with personal accounts in the apps with online promotions and special offers. Information on marketing and sales data is shared through CRM that speeds up all the business processes and improves performance rates of distributors. AI services are implemented into the banking system and analytical departments for precise data analysis and available transaction stories. Take a look at more examples of digital transformation in the context of different industries:

  1. Service sector: 24/7 customer support chats, self-service portals with chatbots, social media platforms as the additional customer desk;
  2. Banking: ATMs (automatic teller machines), cashless payment systems, all-in-one mobile apps for bank clients;
  3. Retail: IoT-enabled digital platforms, online promotions, and discount vouchers, online dispatching services, etc.

Digital transformation is required for the direct sales sector, especially when it comes to pandemic and market recession caused by the COVID-19 restrictions. Using CRMs, automation software, and other technologies advances the recovery after difficult times of coronavirus outbreak and boosts most of the processes.

Direct sales industry difficulties in digital transformation

Avon Face Masks Became Available Online (Source: The Irish News)

Direct Sales Industry Difficulties

Social distancing became the sharpest challenge in 2020 that still affects direct sales today. Quarantine and other restrictions forced by COVID-19 brought new difficulties to distributors and market players. A face-to-face appeal was impossible for a long period of time, so the direct sales performance rates became lower. Traditional marketing tools like demonstration meetings turned out to be outdated.

According to the latest statistics of some direct selling organizations, digital engagement is about fast recovery after a pandemic recession. Here are several examples of successful digital solutions in the context of direct sales transformations presented in Euromonitor International reports:

  • Boticário group reported increased sales by 30% with the help of online channels.
  • Avon and Natura initiated the selling of sanitizers and branded face masks, having increased media outreach 2,5 times.
  • Live streaming boosted direct sales of Amway products in China in 2020 and the first quarter of 2021. One live-streaming session through Wechat gathered about 1.23 million spectators and raised about 100 million yuan. (Source: HPA).

Why Should You Transform Your Direct Sales Company?

As can be seen, the pandemic is applying new rules for direct sales market players. The hot-topic trend of most companies is their focus on online presence. It is worth noting that traditional strategies become out-of-date and useless if digital transformation takes place. But online opportunities are more prospective today and reinventing existing selling approaches is more profitable than staying idle.

You can reach more people while being active in social media networks and generating online promotions. Your company has unlimited tracking capabilities and opportunities for automation of all the business processes at once. Direct sales players can tailor their digital strategies according to their target audience and other internal and external factors. Digital transformation is the inevitable response to today’s events, as we mentioned earlier going online is the only way to succeed for direct sales business. Even for any business…

Do not try to stop or skip it – it is better to be at the head of the mainstream!

Field Sales Force Digital Transformation

The key advantage of digitalization is the opportunity to transform the field force. Distributors will get the all-in-one tool that will help them increase their sales and have improved control over the channels, customer desks, and other processes. It means that the whole field force turns out to become more flexible and controllable.

Digitalization brings the following benefits for market players:

  • The best adoption of practices – digital strategies allow faster and better implementation of new solutions and competencies. Infrequent-visited webinars and training can be replaced with more spirited online practices loved by the attendants.
  • Improved sales funnel tracking – it is possible to provide a special-purpose digital tool for distributors to simplify their navigation in the context of the sales funnel and the bottleneck. This way market players will see the challenging stages of the funnel system themselves and will ask for help timely.
  • Accurate predictive analysis – automated analytical tools will bring actual forecasting information and precise data on the demand for this or that goods. This way the direct sales company will adapt its strategy (the best goods for promotions, changes in distribution/manufacturing volumes, new advertising, etc.).
  • Generation of the best practices – improved analytical capabilities bring the most suitable and effective practices that can be spread through the whole sales network of the company.
  • Enhanced control over the field– digital solutions are also about constant monitoring of distributors and control over them all the time. It becomes easier to find the fact of the rule breach and violation of corporate regulations.

To Sum Up

According to Euromonitor International forecasts, direct selling sales will significantly grow in 2021 due to digital transformation.

Forecasting Data on Direct Selling Sales Growth by Regions (Source: Euromonitor International)

Digital strategies are a true lifeline for direct sales players. The opportunity to transform their selling channels and get larger media outreach with the help of online approaches became the number one priority for most companies.

Digitalization is essential for direct sales field force modifications that are a must for the present-day realities.