How to Drastically Increase Distributor Retention Through Experimentation

By August 20, 2018Blogs

How to Drastically Increase Distributor Retention Through Experimentation - DirecTech Labs

 

What’s the secret to successful marketing campaigns? If you know anything at all about marketing, you know the answer is “experimentation.” After all, you can have the best list, the best offer, and a skilled creative team at your disposal, but you won’t know how effective your messaging and creative really are until you test them.

What’s the secret to successful distributor retention campaigns? Believe it or not, the answer should also be “experimentation.” That’s because DirecTech Labs has functionality that lets direct selling firms experiment with their messaging the same way that marketing departments do.

Use A/B Testing to Find Your Best Messages

Marketers are used to using platforms that let them click, drag, and drop to tweak the various elements of their campaigns. Will the package perform better with a lift letter? What about trying a red envelope instead of yellow? Or changing the envelope teaser? Marketers can easily configure these elements, measure the results, and then make additional tweaks—all within their marketing campaign management solutions.

When you think about it, trying to increase retention and engagement of distributors and customers. is really just a matter of marketing. You’re sending a message, providing assistance, or offering an incentive that you hope will convince your best people to stay.

As effective as your efforts may be, they’re probably not 100 percent successful. How can you make them even better? You won’t know until you test.

The latest release of DISTRO®, our artificial intelligence (AI) robot, allows you to do just that. Suppose you’ve been trying to retain your at-risk distributors by alerting the distributor directly above them in their upline to give them a call and ask how things are going. DISTRO will measure the results of these efforts as they happen.

But what if the upline doesn’t always make the call you wish they would?  You could test different types of motivating messages to see which ones perform better.

Now, what if your upline distributors aren’t always responding to these alerts? You’ll probably want to get their upline distributors involved. But how long should you wait before alerting them—one day? Two days? And do you want to warn them that if they don’t take action, you’ll be informing their upline? With DISTRO you can run classic A/B tests to compare two approaches side-by-side.

Learn as You Go

The great thing about testing with DISTRO is that you don’t have to know all the secrets of distributor retention before you start—in fact, that’s kind of the whole point. You make your best efforts and measure your results. You then brainstorm, implement new ideas, and test them alongside your traditional approaches. If you’re wrong, you can simply change course. If you’re right, you can keep doing more of what works.

Using this incremental approach, you eliminate the pressure to hit home runs in your retention efforts. Instead, you keep learning as you go and build up a base of reliable institutional knowledge on what makes your distributors and customers tick, improving incrementally over time.

Now, can DISTRO automate distributor retention? No, that’s impossible. Your human intuition will always be the most essential piece of the retention puzzle. But as you test various approaches, DISTRO will monitor your success rate and save rate. You’ll have hard data to back up (and sometimes disproved) your hunches. You’ll also be able to record your qualitative feedback (like, how happy the distributor was with the retention approach) in the system for future reference.

Many DirecTech Labs customers are already taking advantage of this functionality. If you’re not one of them, we should definitely talk soon.

We have a lot more to share about how you can address your retention problem. It’s probably easier if you read our new eBook: How Direct Selling Can Use AI to Solve The Age-Old Retention Problem

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