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Synopsis
With the rising importance of skincare in everyday life owing to pollution, lifestyle changes, and various other factors, the number of skincare brands and products mushrooming every other day is unbelievable. Given that situation, brands with authentic combinations and products that give lasting results find it hard to stand out in the very competitive and crowded market.
Customers, with the number of options in the market, are spoilt for choices. In that case, the chances of a brand not coming to the limelight and gaining customer attention are very high. This is where promoting the brand with its unique features and compelling value propositions needs to be showcased. Especially for an MLM skincare business, staying social is important for the brand’s growth, or rather, its existence itself.
Problem
A skincare MLM business wanted to expand their customer base, improve its personal customer relationships and maintain a strong social presence to stand out from its competitors. Although the brand tried a hand at improving customer engagement and thus winning its goal, the strategies planned weren’t meticulous enough to yield expected results.
Lack of effective customer engagement accelerated the need for integrating advanced digital marketing strategies and personalized communication approaches.
Solution
With digitality taking over every other business segment, implementing an enhanced ecommerce platform was necessary for the business to expand its network to new frontiers. A customer-centric business like MLM skincare demands a robust customer base. For which, efficient customer engagement through rewards and loyalty programs, and advanced social selling strategies are essential components to build the business strong and tall.
Having prioritized customer-centricity for every business we handle, Epixel MLM Software plotted a comprehensive strategy for the skincare MLM business to efficiently enhance its profitability and success fueling every factor contributing to the same.
Efficient engagement of customers
![engaging customer relationship](/sites/default/files/effective-customer-engagement.png)
MLM businesses revolve around customers and hence, keeping them in the brand loop is necessary to have them throughout the brand journey. We plotted a thorough plan to keep the customers engaged both online and offline for instant responses to queries, complaints, shipment tracking and every other support for the customers. This improved the customer’s bond with the brand and trustworthiness slowly but steadily.
Considering customer engagement and higher retention rates are interconnected, we focused on enhancing customer interactions by tailoring personalized experiences for them based on their choices and preferences. This improved repeat purchases and average order value (AOV), leaving customers feeling valued and inculcating a sense of loyalty thereafter. We also leveraged the psychological aspect where an engaged customer is more likely to give feedback and reviews helping the brand to focus more on improving its products and services. This recurring cycle led to higher customer satisfaction and retention within a short time span. The bond thus created went beyond transactional relationships encouraging long-term loyalty.
The proactive approach that the brand adopted reduced customer churn rate and increased referrals creating a positive word-of-mouth effect thus improving customer experience, satisfaction, retention and brand loyalty all at the same time.
Social selling techniques
![social selling strategies](/sites/default/files/social-selling-techniques.png)
Given the number of skincare brands in the market, getting people to know about the existence of a brand is crucial. But considering the traffic in the digital space, the chances of a product being dunked in are equally high. Identifying this basic tenet, we decided to merge social selling techniques into the business framework to enhance its visibility in the digital space and give the business a global reach.
Blending social listening and social selling strategy together helped the brand understand how perceptions about the brand vary with changing approaches. It also gave the brand a heads up when there is an unusual rise or dip in engagement owing to various reasons across all their digital handles. Positive reviews and user-generated content increased brand attention to a larger extent.
Thorough market research
Understanding a market is important before plunging in. Therefore, we ran an end-to-end study to get a comprehensive understanding of the brand’s existing and potential customers, what they have been served, and what they are expecting from the brand. This helped us identify specific segments within the market that are more likely to be interested in the brand and its products. This enabled precise targeting leading to higher conversion rates.
Understanding who your competitors are and what they do is crucial to differentiate yourself in the market. Market research gave us an insight into what MLM skincare companies of similar bandwidth are doing, their service, offerings and modus operandi to design strategies that helped the brand stand out from the cliche. This also helped the brand rework on its pricing strategy that maximized profitability while remaining competitive.
Manage and track performances
The social selling functionality enabled the business to watch its social selling performances from time to time. A holistic understanding of how social selling strategies influence the business helped the brand reinforce its standards and oversee progress. The embedded analytics tools efficiently tracked key metrics like engagement and conversion rates and customer sentiments across all digital platforms.
The business could maintain a competitive edge by monitoring market trends and adapting to them in real time. Additionally, comprehensive overview and dashboards threw insights into how various social media campaigns performed.
Furthermore, detailed reports and dashboards provided insights into the most effective social media campaigns, enabling data-driven decision-making. This continuous monitoring and analysis ensured that the business could adapt its strategies in real-time, respond to market trends, and maintain a competitive edge. The ability to manage and track performances effectively also facilitated better resource allocation, optimized marketing efforts, and ultimately contributed to improved sales and customer satisfaction.
Effective lead generation
For the diversity in the MLM makeup and skincare market, having a strong customer base is an asset without which the business cannot navigate to success. Understanding this key concept, we designed automated email campaigns to deliver hyper-personalized emails based on customer psychology, age, gender, etc. Beyond just delivering emails, responses to emails, open rates, and unsubscription rates were thoroughly tracked to measure the effectiveness of the campaigns run. This improved customer trust and created a stronger customer rapport.
To stay in constant contact with customers and to update them in real-time on their queries, concerns and feedback, AI-integrated live chatbots were incorporated. This kept the customer engagement maximized and helped derive important information whilst in the process.
Displaying products in attractive images and catalogs across websites, one-click digital catalogs, and purchase options in the digital space helped generate leads and increase the purchase rate.
Training and knowledge enhancement
Skincare MLM, being one of the sensitive businesses that involves numerous products and one-to-one customer interactions, keeping distributors who get the product to the end customer trained and informed is necessary. This helped provide a thorough understanding of the whereabouts of the brand and its products, ideally helping the distributors perform well.
Personalized training programs kept distributors updated with latest development in skincare science, ethical practices in the sector, and sustainable products. It also helped distributors communicate better with customers with accurate information and thus improve customer trust on the brand and its products. Bite sized training modules that are prerecorded with plug and play content helped distributors refresh their knowledge on the go. This ultimately led to improving distributor confidence while facing customers of every category. Uninterrupted access to the content library ensured that distributors could come back and refer to desired content at any time of the day.
Inventory management
Businesses in the ecommerce platform are quite unpredictable. When a product is newly launched, the chances of it being sold quickly or not being sold at all are equal. However, a business cannot take a chance under both circumstances. This being the case, effective management of the ecommerce store is beyond necessary. Inventory and e-store were synchronized together to make sure that products never ran out of stock or were overstocked to avoid admin overhead.
The scalable inventory management platform enabled organizing, managing, and updating stocks in real time without causing any bottlenecks in the supply chain or disruptions in the sales process.
The feature also gave the brand a thorough understanding of how its products are being purchased across various demographics, age groups, and customer segments. A strong record of how various products perform in different markets helped the company with faster decision-making and alter their strategies suitably.
Rewards and loyalty programs
Loyalty programs are vital for an MLM skincare business to retain its customers efficiently. When customers are rewarded often for frequent purchases or higher level of spending, they would feel motivated to repeat purchases and spend more on the brand. Integrating loyalty programs fostered a sense of belonging for customers with the brand because they felt more valued and rewarded.
Loyalty programs also aided the business in deriving valuable data on purchasing behavior, habits, and preferences of customers. This benefited in devising marketing strategies, curating personalized offers, innovating products, and improving their qualities, positively impacting customer satisfaction levels.
Despite being a very highly competitive market, loyalty programs helped the MLM skincare business gain customer and distributor attention with its unique value propositions and exclusive rewards and benefits to acquire and retain distributors and customers alike.
Challenges Faced
For an MLM business that has been operating in the industry for quite a long time, we had to navigate through numerous challenges to alter their strategies. Of which our major concern was distributors being reluctant to adopt new strategies since they have been with the brand for a long time and are accustomed to the old or existing methods.
Lack of technical knowledge among distributors was a significant challenge that slowed down the integration of new technology into the system. However, investing a few extra hours to train distributors and provide continuous support eased the process.
Considering the sensitivity that the skincare sector beholds, managing the compliance side, which underwent constant changes was one main hurdle. Staying updated with the help of automated compliance monitoring ensured that the business stayed away from legal issues and maintained its brand integrity.
In the highly competitive MLM market, striking a balance between changing market trends and adapting to newer strategies was a tiring task. Nevertheless, we constantly analyzed the market dynamics, and took a proactive approach to foreseeing and shifting to changes in the industry effectively.
What also bothered us was customers resisting changes and the perception of inconsistency leading to distrust in the brand. However, with robust support systems and careful planning, we painstakingly rebuilt trust and demonstrated the value of new strategies winning over challenges, gradually yet consistently.
Expected Results
Improved customer retention rate
56%
Lesser customer churn rate
39%
Increased customer engagement
28%
Increased digital presence
36%
Higher AOV
18%
Rise in repeat purchases
16%
Improved customer loyalty
33%
Higher CLTV
22%
Increased revenue
41%
Improved customer retention rate
56%
Lesser customer churn rate
39%
Increased customer engagement
28%
Increased digital presence
18%
Higher AOV
18%
Rise in repeat purchases
16%
Improved customer loyalty
33%
Higher CLTV
22%
Increased revenue
41%
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