Academic Forum
March 2010
The Internet: Friend or Foe?
THE internet can be the direct selling industry’s greatest friend or
worst enemy. With online shopping and communication a part of everyday
life, not making best use of this channel could prove fatal, and simply
ignoring it plain foolish.
For direct selling companies to survive the future they need to get online, but most importantly they need to do it effectively. The days of putting products online with a bit of e-commerce capability thrown in are over, it is now about bringing the ethos of the direct selling industry to the internet and building new and existing relationships, by offering a more interactive way of purchasing, which gives added value. “The internet can be our friend or our worst enemy. Maintaining good practice and a high standard of ethics online is crucial. Direct selling companies that don’t make use of new technologies are going to be left behind.
You’ve got to be cutting edge.” Colin Jones, European General Manager, Mannatech, Direct Selling News Europe, September 2009.
Why now?
Direct selling is about relationship building, and it is about interaction with the customer. This is probably why businesses in the direct selling industry are later adopters of the online revolution. Historically the internet was quite a cold interface, a faceless way of purchasing, a channel with no geographic boundaries and a place only a few people bought a few types of products. Today, ‘more than 85 per cent of the world’s online population has used the internet to make a purchase, increasing the market for online shopping by 40 per cent in the past two years. Cosmetics, nutrition products, and groceries are increasingly being purchased online’ (Trends in Online Shopping a Global Nielsen Consumer Report. Online Shopping Takes Off); and ‘six out of ten top internet sites are social; none were on the list in 2005’ (socialmediastatistics.wikidot.com).
These three statistics alone are quite conclusive. The internet is now a normal place to shop for an increasing range of products and to form relationships.
This is great news for the industry, at last the internet can actually be a help rather than a hindrance, but how can the crux of direct selling be translated online?
Get the site right
The statistic about online shopping increasing by 40 per cent in two years not only tells us how many people are shopping online, it is also indicative of how many more businesses are selling online – intensifying the competition.
Businesses need to build upon the ethos of the direct selling industry; there is more to getting the website right than simply having a good, functional website. Yes, the website needs to be user friendly, intuitive and very easy to order from. A new customer needs to be able to find a Consultant, look at the product and ultimately place an order; but there needs to be fluidity between the online presence and the offl ine product. Traditionally (and still primarily) a face to face business model, the website needs to portray the catalogue in a similar way to offer familiarity to customers and go some way to communicate the essence of the products usually conveyed by the consultant.
As Paul Southworth, Editor of Direct Selling News Europe says, “some companies rely too heavily on internet communication and forget the personal touch.”
The customer of the future needs choices over where to order – online, by telephone, at a party – all need to be readily available. Direct selling must shift to developing face to face AND online relationships.
What differentiates the industry is the face to face relationship. However almost everyone’s relationships are partly online, even if it’s just exchanging emails with family members. Online only is a tough game. Face to face only has a limited future. Companies that are great at face to face selling that can also integrate online aspects to their Distributors’ relationships could do very well.’ (Six key insights into the future of the Direct Selling Industry, Ross Dawson, April 2, 2009 http://www.rossdawsonblog.com/weblog/archives/2009/04/insights_into_t_1.html)
Give the Consultants an online business opportunity If a direct selling company does not offer their Consultants a business opportunity online, they will simply make their own. With multiple spin-off websites springing up, a company’s brand values and image will be compromised.
Potential customers will be confused and put off by these mixed messages resulting in lost business. A simple micro site for each consultant with brand and user guidelines built in, which links from the main company website is the solution. New customers can find and communicate with their local Consultant; Consultants can publicise their events and offers online; existing customers can keep in touch; Twitter, LinkedIn and Facebook accounts can be linked, whatever functionality desired, but most importantly under the control of the direct selling company.
There will be no questions over professionalism, rogue Distributors will be easily identifiable and the company brand will be adhered to.
Paul Southworth, Direct Selling News Europe says, “Poor websites, developed cheaply portray a poor image, rogue Distributors use access to their own sites through the use of the company name, and can cause misrepresentation and dilution of company image and ethics. Professionally developed websites have a major impact on company image for both existing and potential customers.”
Create a social media policy If a clear set of guidelines and company ‘do’s’ and ‘don’ts’ for social media is not spelled out, something will go wrong. It is still unclear how best to use social media for businesses, but very clear how not to use it! All company Representatives need to ensure their company’s values and ethics are upheld at all times, and build a PR strategy incorporating social media channels.
‘A company must implement a social media guideline that does not trample on the rights of workers to use social media but still protects the business and the workers. It is important for the employees to understand that there are reasons your company must implement a social media policy. Give them examples of how messages can spread quickly online. Tell them how oversharing of information is not always good especially if the information pertains to your business.’ (Official Wire, Lawrence Perry, October 13, 2009)
Build in control and measurability
With demarcation between marketing disciplines fast becoming blurred, online (and offline) activity needs to be measured to know what is and isn’t working and companies need the ability to react quickly and make the necessary changes. Every separate element of the marketing activity both online and offline needs to have measurable parameters built in – ways of actually managing the campaign rather than simply watching it happen, allowing ongoing optimisation. For example, response to online and offline direct marketing pieces, number of calls through to a specific line for a campaign, click through rates for online advertising, response to offline advertising, specific product promotion, cross promotions etc. If all of the information is captured, campaigns can be tweaked, marketing activity will be much more effective and time and money will be saved.
The direct selling industry has a fantastic opportunity in the internet if it is used correctly: A website that reflects the brand and personality of the company; clever use of technology to demonstrate and communicate the products online; a clearly defined place for the Consultant online;clear policies so all communication is positive and ‘on brand’; in-house control over content; and capability to properly understand what activity is effective. Simple!
Some direct selling companies are already doing all of this, some are doing some of this, but I am sad to say that many are doing very little or none of this, which may prove disastrous. Only time will tell.
www.pauleycreative.co.uk/directselling
