What Part-Time Uber Drivers Can Teach Direct Selling Companies About Churn Prevention
Ever met someone who drives for Uber? Sure you have. Everybody seems to be doing it nowadays.
OK, but have you ever met someone who drives for Uber 40 hours per week? Someone who considers it their main way of paying their rent? Probably not.
The vast majority of Uber drivers you’ll ever meet will be those who do it, say, one or two days per week. People who drive when they want an extra $100 in their pocket for that weekend trip to the coast.
Are these casual drivers lazy? Do they simply lack the motivation, the business savvy, or perhaps even the people skills to be full-time Uber drivers?
No. For most people, becoming an Uber driver is simply a mean of picking up some extra cash.
It would be crazy to chastise these people for not driving more. They never intended to be Uber’s busiest drivers, or to get rich by driving other people around.
There are lots of “part-time Uber drivers” in your direct selling company. By figuring out who they are and talking to them the right way, you can really step up your churn prevention efforts.
Some of Your Sales Reps Don’t Want Big Bucks
Now, the point of this article isn’t to say that many of your sales reps literally drive part-time for Uber—although I wouldn’t doubt that some do. That’s life in our “gig economy.”
My point is that many of your sales reps joined your company with the mindset of a part-time Uber driver. Selling your products is a gig—probably one of several gigs in which they’ll regularly engage to generate income.
Is this true of all your sales reps? No. Some truly dream of replacing their entire full-time income by selling for you. Others would like to replace at least a substantial percentage of their income.
Still others have become distributors mainly because they love your products and will gladly make a sale here and there if the opportunity arises.
Take “Susan,” for example.
Susan has a successful diet counseling practice. After using a popular line of vitamin and mineral supplements for years and seeing how well they worked, she signed on as a distributor. Whenever one of her diet counseling clients is shopping around for new supplements, Susan is happy to provide a sample and make a sale.
This only happens about once a month—and Susan is fine with that. Unfortunately, the company doesn’t seem to be. They keep sending her emails and letters challenging her to ramp up her sales volume, attend training events, and earn the big bucks. (How’s that for churn prevention?)
Susan ignores these messages for a while. But then she asks herself, “Should I be pushing myself harder? Am I just being lazy by not trying to make more sales?”
So she attends a local sales training session for the product line. She expects to learn more about product benefits and how to communicate them effectively to her network. Instead, she experiences something quite different.
The main presenter drives up in a Porsche and is dressed in a $2,000 suit. He spends most of the session telling his own rags-to-riches story, bragging about his vacation home and expensive toys, and telling the audience that they can be as successful as him if they just set goals and try harder.
Susan leaves the event feeling like she doesn’t even belong in the company. As she tells a client the next day, “The only reason I even stay on as a sales rep is because I love these products so much.”
How can you avoid making your sales reps feel like Susan? With segmentation.
Using Segmentation for Churn Prevention
Segmentation is a key to churn prevention in direct sales. It enables you to determine a “type” for each of your sales reps and customers. From there, you can communicate with each of them in a way that supports their needs and respects their goals.
DISTRO, an AI at the heart of the DirecTech Labs platform, analyzes the behavior of your sales reps and customers and segments them into nine distinct categories. “Susan” would be what we call a Casual Builder—she loves your products and she’ll sell when the opportunity arises, but she’s not driven by money.
Want to know more about the nine categories of people in your company and how to communicate effectively with them? Join us for a free webinar.