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Direct selling as a business model has not stopped evolving, from the early beginnings of the door to door sellers to today’s affiliates marketing models and increasing use of influencers in our networks, it is still an up to date business model that employs millions of independent sellers worldwide and that is not planning on staying behind the curve. As we see other business models adapting to new technologies and new ways of purchasing driven by customer preferences, the Direct Selling industry is taking big technological developments to continue representing a very alive business model.
As consumer preferences change, and the purchasing decisions are affected by more globalized messages due to the growing presence of social media and internet in the world, Direct Selling adapts its networks from mere distributors into brand influencers and networks of consumers.
Today, consumers are spending more time and resources into experiences and services, and they are growingly demanding more content on a daily basis in their electronic devices. We have even moved on from the era of E-Commerce to an age of Social Media Shopping – Social commerce, Auto-Shipping preferences, Artificial Intelligence, Auto Fulfilling Homes and unlimited information availability, which has represented a challenge for retail to adapt to consumer preferences but that they have been keeping up thanks to constant technological developments, new sales channels, and focusing on adaptations of the purchasing experiences.
Subscription Services are a great way to keep consumers invested in your company by giving them a service they need at a monthly price that produces a consistent revenue for your business. One of the most important characteristics of these businesses is that they usually rely on products and services that have recurrent use for the consumers and this is particularly why this model represents an interesting perspective for Direct Selling.
“Subscription model is the way of the future” Tien Tzuo
- Business models have switched from promoting products to be obsessed with continuous delivery of value to their consumers. Customer-Centric companies that are obsessed with their clients are the future of business because they have understood that the clients needs and desires if fulfilled will guarantee the future of the company.
- Businesses that have successfully transitioned from product-based marketing, to services (benefit) – based marketing, have longer life expectancies with today’s consumers.
- Value generation throughout the complete purchasing process for consumers, since before they even know what product you are selling. It consists of becoming part of their experiences.
- Think about the convenience of your products:
- Are they something your consumers need or want?
- Is it something they will be willing to pay more or they consider it overpriced?
- How easy is the purchasing process?
- Can they purchase it through every means they want?
- Is it available in all the sales channels the rest of the products in that category?
- What value are you adding on the purchase experience?
Subscription business models and Direct Selling
Extrapolating “subscribed” messages to Direct Selling we begin to realize that Direct Selling’ business model is not far from consumer “subscriptions” expectations today, that if as an industry it continues advancing, adapting and using consumer trends in their favor, its business is destined to last for years with the representatives becoming more important for their communities and consumers.
If you check today for the most popular subscription-based business you’ll find mostly digital service providers like Netflix or Spotify, but do not let it turn you down. This trend can be applied to products, you just have to keep your mind open to considering that the value you provide your consumers is not only on your product characteristics, but you also deliver value through content, training, and experiences associated to your products, the way your products solve different needs for you consumers is what they signed up for in your subscription.
What does the use of this great business model bring?
- Customer-Centric marketing and communications
Gather information from every contact your consumers have with your brand, your products, your sales force, and use it to strengthen your communication and marketing practices. Use what they are asking you to communicate back to them and make strategic decisions.
- Customer Success journey strategies
Focus on delivering value for consumers from their first contact with your company to post-purchase service, to Acquire more customers, increase the value of those customers, increase their loyalty
- Onmichannel presence / Omniclient availability
Be where and when your customer is ready to buy you. Make accessibility to your products a priority, on mobile, desktop, online, in-store, on marketplaces, apps, WhatsApp, social media, tv commercial, newspaper… and make the purchase easy with different payment methods, short menus, and confirmation notifications.
- Direct Selling strategic planning portfolio
Decide which products from your portfolio can adopt subscription base practices and help your consultants motivating their recurrent clients to sign up for those and save.
We believe that carefully implementing subscriptions into your Direct Selling company can build stronger relationships with your consultants as it will become a recurrent commission for them, and, as it will simplify some of your production and inventory planning since you have planned demand. Since staying competitive as a Direct Selling company lies in how you establish ongoing relationships with your customers, subscriptions are a great way to do so.
S4DS Software Solutions for subscriptions in Direct Selling businesses
S4DS Software Solution is the one-stop software your Direct Selling company needs to grow sales, strengthen your sales force and take advantage of adaptations for your business models as you require it. Our powerful solution grows with your business, your sales force, and your products. Let us guide you through our:
- Completely integrated CRM for your company and your distributors
- Our rule engine in which you can configure all your business rules to never calculate and pay commissions manually again
- Our subscriptions and auto-shipping features
- Our customer service modules
- Our ready to use ads on
- Our social selling features
And more, let’s talk!
