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Internet Strategy: Marketing & Sales Organizations and Multi-Level Marketers
The
Challenge
As a Marketing &
Sales Organization (MSO) reliant upon multiple levels of distribution
to bring your products to market, your Consultants (sometimes known as
distributors, agents, sales representatives, etc) are vital to your success.
Existing and prospective
customers are looking to the internet to purchase your products as their
popularity and demand grows. The next generation of consumers is relying
upon the internet more and more to save them time. Competitive products
are being sold online by companies that are not dependent on multiple
levels of distribution. Of equal importance, your direct competitors are
selling online through their Consultants, using channel management strategies
and software to remunerate for online sales at all distribution levels.
Your challenge is
to help your Consultants maintain and build relationships with their customers
online and offline, offer convenient and simple online product ordering
24/7 and to prevent customer defection while remunerating your Consultants
at all levels of distribution.
The
Solution
Great
companies such as Mary Kay, Shaklee and Tupperware are meeting their customer¹s
need by implementing effective distribution relationship management strategies
and software. They have no illusions about the power and value of their
Consultants, distributors or agents. In a landmark decision, Tupperware
ceased sales in Target Stores in favor and complete support of their house
parties, the traditional method of selling the plastic storage containers.
Rick Goings, CEO, said in a statement that the partnership with Target
was very successful and sales had "exceeded our expectations."
But the company decided that it would rather support its independent sales
force. Accordingly, profits attributable to online sales are now apportioned
to their channel partners.
Reshare offers Distribution
Relationship Management® (DRM) for eCommerce. It is a patented software
and technology solution that allows a manufacturer to sell its products
directly from its website WITHOUT alienating its existing distribution
channel partners. Reshare acts as a third party that is invisible to the
customer. We apply your existing business rules from the offline world
(e.g. percentage "commission" to Consultants) to online sales.
While a customer has the convenience of ordering in the privacy of their
home at their convenience, 24 hours a day, seven days a week, the Consultant
is never circumvented.
To assure the relationship
between your Consultants and their customers, customers are required to
identify their Consultant at some point in their online experience. Depending
upon your preferences, this may be upon entering your website, browsing
products, adding products to a shopping cart or at check out.
Similarly, new customers
are prompted to select a Consultant based upon your business rules. We
work with you to determine the question/manner in which customers are
asked and Consultants are presented online. An example might be, "if
you needed to return or exchange your product, who would you like to have
help you?" Consultant Bios, interests, or other relevant information
can be presented to help a new consumer choose a Consultant. In the case
where the customer has no preference, any number of geographic, performance
based, business building, or randomizing algorithms can be used to make
the selection.
Gaining
Incremental Sales Through Existing Customers
Regardless of
how large and far reaching your organization is, your Consultants cannot
be available to every one of your customers 24 hours a day, seven days
a week, nor can they attend to more than one or two customers at a time
outside of a group setting. Online sales allows your Consultants to serve
all of their customers all of the time and all at the same time, if needed.
Geographic barriers, time of day and availability of Consultants will
not hamper an online purchase. Furthermore, you have the opportunity to
cross-sell/up-sell based on previous online ordering behavior, survey
information, with a level of technological sophistication that your Consultants
cannot duplicate. All of this translates into incremental sales for you
and your Consultants.
Gaining
Sales Through a New Kind of Customer
Serving customers
who are not interested in the relationship building and social aspects
that your Consultants offer represents a very important and often overlooked
marketplace. Your product is no less valuable or meaningful to these people;
however, the psychology involved in their buying process is not conducive
to the techniques used by your Consultants. Provide these new customers
with all of the same products, support, and services using DRM and apportion
profit share to an appropriate Consultant at the same time.
Augmenting
your existing Distribution Model
MSO companies usually have a longstanding reputation for quality products
as well as an offline distribution system that works well. Aside from
internal initiatives to evolve business as needed over time, there is
no reason to change your company into something completely different from
what it is. Reshare's DRM solution does not, in any way replace or change
a traditional offline model that is working. It offers you the opportunity
to bring in incremental online sales from a new kind of customer as well
as from existing customers who are increasingly going to the internet
to buy.
Supporting
Consultants
Your Consultants
are critical to your business and, regardless of what you do on the internet,
will continue to be your most valuable resource. For a brand-owning manufacturer
to sell online in direct competition with its own traditional Consultants
is what we call "The Grenade Approach" to eCommerce. It is a
strategy that causes ill-will with those who support your business. If
you lose your Consultants, your business fails. Similarly, to engage in
eCommerce but then give Consultants less profit for online sales than
for offline sales is also a strategy that creates conflict. In order for
acceptance and advocacy on the part of your Consultants, they need to
benefit from online sales just as they do offline.
Brand Control
Brand
is the relationship between people and products the culmination
of thoughts, essences, feelings and beliefs each of us has towards a given
product or service. It is a summary of what a customer expects of a product,
over and above the product or service itself. Brand is arguably the single
most important asset a company has. Opportunistic online vendors fill
the gap where brand owners fail to serve their brand-seeking customers.
If you are not currently meeting online consumer demand, brand-seekers
resort to online
suppliers such as Amazon and eBay. Although the customer¹s personal
experience with a
Consultant remains intact, the brand is undermined by association with
these lesser channels. Of potentially even greater importance is the impact
that lesser channels have on prospective customers who categorize your
products among the inferior brands that surround it on these sites.
Preventing
Product Diversion
Product diversion
acts as a direct threat to brand value. While it may not be possible to
eliminate all diverters, it is possible to disempower them by eliminating
the primary reason for their existence. By meeting demand of a growing
base of online shoppers, and by policing supply flow, manufacturers are
able to curtail diversion. Global Diversion is increasingly becoming a
threat to the value of brands in overseas markets. Products are exported
outside of the US and sold online around the globe at US prices that are
often 20-30% lower than foreign prices. Of equal importance are the price-cutting
practices that are occurring at US websites. Although the price spread
is not as dramatic in the US as it is in foreign markets, small diverters
will cut prices to secure sales. Large diverters are willing to discount,
effectively creating "loss leaders¹, that attract customers
to the myriad of other products they offer. Some merchandisers will even
offer product that they, themselves, must purchase at retail, for the
sake of boosting their apparent legitimacy to the marketplace.
Preventing
Customer Defections
Customer Defections
attack profitability. Lack of inventory at a retail store often causes
defection to another product, and for die-hard internet shoppers who know
exactly what they want, lack of online commerce also causes defection.
A Harvard University study shows that by retaining just five percent of
your customers, profits rise by no less than twenty-five percent.
Streamlining
Order Taking
The ability
for your customers to use Reshare DRM to automate all of their purchasing
with
you will reduce your processing costs tremendously! Moreover, the use
of online ordering greatly reduces order-taking time. This frees up Consultants¹
time so they may focus more on value-added customer service and prospecting.
Reshare¹s
Patented Software
Reshare offers
the only patented (US# 6,594,641 and foreign countries) software that
enables you to:
- Sell directly online
to consumers who are ready to buy at your website
- Gain access to
valuable consumer information that can help in targeted marketing, cross-sell/up-sell,
and research/product development
- Allow consumers
to locate and select an appropriate Consultant who will profit from
the online sale
- Credibly demonstrate
fairness to all Consultants
- Maintain existing
relationships between your Consultants and the consumer
- Showcase your
entire product offering
Additional
Benefits
- Order processing
cost reduction of up to 72% across all channel partners
- Increased order
accuracy
- Increased order
size as the result of ease of use and access
- Up-selling and
cross-selling abilities for other products
- Maintain absolute
control of your brand with consumers and Consultants
Internet
& Channel Experience
With over 20
years of online experience across a multitude of industries, we offer
software and strategies that resolve channel conflict, streamline sales
processes, guarantee brand control, and enhance relationships between
all channel partners and end users. We have a deep understanding of the
benefits and challenges of distribution. Our mission is to increase profitability
and market share for you and your Consultants.
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