How Recognition Can Help You Increase Retention In Direct Selling Companies
When was the last time you received recognition for your outstanding work? I’m not talking about getting a paycheck, a commission, or even a monthly or quarterly bonus. No, I’m talking about feeling that your effort is acknowledged, appreciated and valued. When was the last time your supervisors made you feel like you were doing a great job?
Maybe you’re one of the fortunate few who can honestly say, “I feel that way all the time.” But for most distributors in the direct selling business, recognition is rare. In an industry that’s wracked by retention problems, we believe that has to change. And we believe that well-placed recognition can help to increase retention in direct selling companies.
Back in the old days of direct selling, it was standard practice for someone from Headquarters to call up a new distributor to welcome them to the company. As that distributor began making sales and building her network, she could expect to receive more calls from the company congratulating her on her achievements.
But direct selling has grown to the point where this type of personal touch is no longer feasible for many businesses.
The truth is that as human beings we all want to be recognized for our efforts. Nothing else can quite compare to few well-chosen, sincere words of praise.
In seeking to fulfill distributors’ need for recognition in a scalable manner, many direct selling companies host annual events, conventions and incentive trips that bring everyone together. Does your company put on regional or national conferences for all distributors? If so, I’m sure there’s a significant recognition component to these events. At some point, top earners are welcomed on stage to receive plaques and “attaboys” from senior executives—and raucous applause from their peers.
There’s nothing wrong with that. But recognition shouldn’t end there because people will do more for recognition than for just about anything else—sometimes even money.
Think about it. Surely you know someone who left their company, took a pay cut because they felt underappreciated. Perhaps they even went on to a lower-paying position where they felt like a valued member of a team.
If so, that person probably left others shaking their heads: “How could you walk away from all that money? In another year or two, you could have been promoted!”
but here’s the thing: we humans have a need for recognition—and you can’t buy recognition with money
You’re building an army of distributors. You like to think of them as your “team.” But they think of themselves as independent consultants—and they could leave at a moment’s notice.
So it’s not enough to tell them they’re part of the “family,” You have to show them. And you can’t just do it once a year at an awards convention—it has to be a continued effort.
DirecTech Labs offers technology solutions that identify the people who are about to leave and take targeted action to prevent that. We use artificial intelligence to analyze behavior, predict attrition, and then alert your network members who have the best chance of convincing your people to stay. The result? Our solutions increase retention in direct selling companies, which in turn, results in increase sales.
The age of the personal phone call from Headquarters may be over, but what about keeping the personal touch throughout your networks?
What about providing your distributors with the tools they need to keep up consistent communication with their downlines? What about offering suggestions at appropriate times to give downline distributors a shout-out (work anniversary, sales and recruiting milestones)?
Take the time to put yourself in the shoes of a promising new distributor. Figure out the kinds of recognition they would want at each stage of their journey. And then show them the recognition and appreciation they crave. You’ll find that they return that by becoming your most loyal distributors.
Want to learn more? Check out the article: How to Increase Field and Customer Retention in Direct Selling Companies