The word ‘loyalty’ simply means strong support towards someone or something. As we know, distributors are very important in the establishment of direct selling businesses. With their sound knowledge of products and the business, they play a key role in the promotion of an MLM brand. Distributors improve their knowledge and skill with time. Be it a customer or a distributor, their time with a business is greatly dependent on how satisfied they are with the business. Why would someone support your business? The following can be some of the reasons:
Quality of products
Organizational values
Customer support
Feedback channels
Product campaigns
Brand communities
Brand popularity
Positive engagement, structured onboarding and training, timely commission payouts, resourceful support and guidance, etc, are some of the many factors that would keep distributors satisfied with their MLM career.
Distributor relationships
When two people are able to relate to each other positively, they have a good relationship. Even though relationships vary in different contexts, they are basically formed out of trust and compassion. Proper distributor training ensures the development of a well-grounded relationship with distributors. There are a number of ways to recognize the initiatives and efforts your distributors put into the direct selling process, the most common being loyalty programs.
Distributor loyalty programs: An overview
For decades, direct selling has aimed at personalizing the business for its customers as well as distributors. Distributor programs have served this purpose successfully, by encouraging the customers to take on the sales challenge and existing distributors to remain focused on their goals. Distributor onboarding, training, engagement, and team building, are empowered by well-structured loyalty programs. Direct sales loyalty program software can be leveraged in resolving the never-ending challenge of distributor retention.
The impact
Loyalty programs instill the awareness in distributors that they are being recognized for their efforts. It motivates them to promote your business. Following are some of the key impacts of distributor loyalty programs:
The most important outcome of loyalty programs is that it improves the retention of your distributors. According to Bain & Company, a 5% improvement in retention can boost profitability by up to 75%. Loyalty programs allows for value-based engagement, which can help retailers and distributors retain customers.
Loyalty programs don’t always have to involve discounting. There are alternatives that can accelerate growth and productivity. Conduct contests and use leaderboards to create healthy competitions among distributors for profitable actions like hosting product events, completing training, cross-selling, reaching particular sales tiers, or referring others.
Loyalty programs simplify the customer acquisition process for distributors. Distributors can spark the interest of their customers with customer loyalty programs. Also, brand advocates and influencers motivate customers to connect with distributors frequently.
Use MLM loyalty programs software to analyze the performances of distributors and reward the best of them with incentives they’d cherish. This process can improve distributor engagement and thereby retention.
Automated reward systems help distributors reduce the excess time spent on customer retention efforts, and focus on converting more leads and building their team.
Loyalty programs make it possible for trying out different approaches to rewarding distributors besides commissions—offer merchandise, swag, gift cards, VIP access, and other perks.
Build brand credibility through loyalty
Retain customers and distributors competently through innovative loyalty management strategies.
Earn brownie points!➔
Ways to implement
Loyalty programs are great ways of showing support toward distributors. With MLM software tools, direct selling businesses can easily integrate loyalty programs at the right places and enjoy the best outcome. Following are ways which can earn you the gratitude of your distributors:
Enrollment rewards
Training fulfilment rewards
Sales achievement rewards
Referral rewards
Performance rewards
Contest/participation rewards
Some key stats
82% of companies agree that retention is cheaper than acquisition.
75% of consumers say they favor companies that offer rewards.
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program.
95% of loyalty program members want to engage with their brand’s program through new and emerging technologies.
72% of US adults belong to at least one loyalty program.
The probability of selling to an existing customer is 60-70%.
Find out from our customers how our solutions give MLM businesses an edge and exceed customer expectations
Every business thrives on the satisfaction of the parties involved. Here, we have emphasized the satisfaction of distributors, who are the faces of direct selling organizations. Loyalty programs generate enthusiasm in distributors, making them more productive and engaged with the direct selling business. From onboarding distributors, nurturing them, and finally helping them acquire and retain customers, loyalty programs can empower and enhance the growth of direct selling organizations. MLM software allows for easier and wider integration of loyalty programs across the business platforms.
(Source: SmallBizGenius)
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