High retention doesn’t have to be some elusive holy grail. By focusing on the direct selling representative or customer journey, you improve their experience, keep them longer, and boost their lifetime value to your company.
We talk to companies about direct selling retention nearly every day. Churn is a major pain point across categories, verticals, demographics—you name it. The ubiquitous nature of this affliction is made all the more troubling when we ask these companies the following question:
“What does retention mean to you?”
It’s shocking how varied the responses are. For such a prevalent issue, there’s no clear definition of the end goal and no clear metric to stay on track. On the other hand, these companies have a 100% clear definition of recruiting, along with a list of strategies to scale and improve their recruitment efforts.
So let’s establish some clarity around customer retention.
Does retention mean reactivating those who’ve become inactive? Or does it mean keeping more customers past their first 90 days? What are the metrics to determine this and why are they meaningful? And, furthermore, why is it important to focus on retention?
What retention means is inherent to its importance, so here are three trackable definitions of that importance to your organization:
Retention, put simply, values the customers you’ve acquired as much as—or more than—new ones. When a representative loses 20% of their customer base every month, that has a far more negative domino effect than a 10% loss. So, metric-wise, retention means giving value first in order to reduce churn.
Now that we know what direct selling retention is, the next step is to discover what happens when we keep both a customer and a rep for longer.