When People Change: Understanding Behavior in Your Direct Selling Business
Most people don’t like to be labeled. But if your direct selling company is labeling its sales reps and customers, that can actually be a good thing.
Just make sure you’re doing it the right way, and for the right reasons.
As we explained in a recent article, segmentation can help you avoid looking at your entire database of sales reps in an unrealistic binary way, where they’re either leaders or people who have failed in the attempt to become leaders. (The reality is much more nuanced than that, of course.)
By using segmentation, you can put your sales reps and your customers into multiple distinct groups. You’ll then have a much richer understanding of who they are, why they joined you, and what motivates them.
But when you put these labels on people, make sure you can still peel them off.
What Direct Selling Transactions Tell You About Your People
As you may have gathered by now, I’m all for segmentation. You won’t hear me say anything bad about segmentation.
My only problem is when people think that once a sales rep or customer lands in a segment, that’s who he or she is—and nothing can change it.
To avoid this mindset, remember this: segmentation should be done based on people’s behavior, not based on some intangible quality or subjective assessment of their potential.
DISTRO, the artificial intelligence solution within the DirecTech Labs platform, can help.
DISTRO has analyzed millions of transactions from direct selling companies around the world and developed an understanding of the types of people who get into this business.
When it comes to sales reps, there are five categories based on the specific behaviors people exhibit once they join a direct selling company.
But here’s the thing: behaviors can change.
For example, a sales rep might join your company, make an initial sale, wait several months, and then make another sale. DISTRO might then put that person into the Casual Builder category. This is someone who will likely make an occasional sale when the opportunity arises, but who probably isn’t seeking to make a steady income from it.
But what if that same sales rep makes three sales the following month—and then seven sales the month after that? It’s probably no fluke. That sales rep must be getting out there and actively seeking opportunities to sell.
He should be placed in a different segment so that you can communicate with him in ways that enable him to continue setting and achieving appropriate goals. And that’s exactly what DISTRO helps you to do.
DISTRO monitors your sales reps’ behavior on a day-to-day basis and moves them from group to group as needed. Some will move up the ladder to a group that better reflects their increasing activity. Others will move the other direction—or even become listed as Inactive.
Within our dashboard, you can view your sales reps by groups, by currency, or by numerous other traits. This flexible view will help you track the progress of your sales reps over time and identify trends that could factor into your long-term planning.
Register Now to Learn More
There’s so much more we want to share with you about segmenting, understanding, and motivating your sales reps in your direct selling business. We’ll write more soon, but why don’t you join us for a free webinar in which we’ll cover these topics? Register now.