Thinking about taking your Direct Selling Business to Latin America? These are 6 things you must consider 

These a the must 6 thing to keep in mind when expanding your business to Latin America

Expanding a business to new geographies can be challenging. Even if your brand is already recognized in a specific country, success in a new region is not guaranteed, and having an amazing product, which we are sure you do, may just not be enough. So, being prepared may be of great help!

Knowledge of the new region is key. How do people who live there like to buy? Do they search for products online in advance? Is the relationship with a potential vendor a deal breaker for consumers in the area? Do they like to interact in person or prefer a digital approach? Are they savvy when it comes to technology and what tools do they prefer to use?

Using omnichannel solutions to reach customers where they expect to be reached can be a great aid in creating a compelling buying experience for any market. 

It’s all about understanding the geographies your business is targeting and approaching them with the sort of personalized experiences that provide a competitive advantage for any new company. 

Offering integral omnichannel experiences that support each end-point of the buying journey, be it e-commerce, Social Media, Whatsapp, Experience Centers, or door-to-door direct sales. With S4DS’s Software Solutions for Direct Selling, not only is this possible, but you can integrate all the business information, from various channels, into a single platform to manage the business and the sales forces. 

The potential of the Latin American market for direct selling businesses

In Latin America only, it is calculated that over 10 million people participate in the different direct sales models. This includes independent representatives and corporate employees with women being the main drivers for the rapid expansion of direct sales in the region. 

Understanding representatives, their needs, and how they reach clients to keep them buying as a result of personal relationships and efforts to improve their quality of life is one of the best alternatives to position a Direct Selling brand in the Latin American market. 

Direct Selling Businesses thrive with human connections and technology turns out to be a great way to enhance those connections. In S4DS, we have been closing gaps with technology to improve the lives of millions of people hand-by-hand with the power of Direct Selling to change lives.

We have worked for many years to understand the Latin American market to become the go-to strategic ally for Direct Selling businesses looking to expand their activities to these countries. 

These are our must-haves for Direct Selling businesses growing in the Latin American Market according to that experience

1. Credit-Friendly models reach broader audiences and create opportunities for representatives’ business development

Leveraging Credit assignment models that facilitate the purchase processes for Affiliates and End-customers is one of the practices direct-selling businesses have adopted to succeed in Latin America. 

The brand itself becomes a “financial enabler” for customers and by doing so provides a wider, better, and more accessible payment experience for a segment of customers that may otherwise not qualify within the buyer persona due to prices. 

This models also serve as a credit tool for Representatives to pay in advance in the name of an end-customer with their credit and provide them with longer payment times to incentivize more sales within their networks. 

Credit Management systems are then a fundamental pillar for Direct Selling in Latin America as it is important to keep up with assignment, collection, and financial states. 

S4DS’s tools for Credit Management include functionalities that enable companies to make decisions regarding the approval of credits, agreed amounts, collection, states, and historic information through simplified automatic workflows that provide decision-makers with all the information they need to support customers and aid them through the buying journey. 

Learn more about how technology in the service of Direct Selling is closing gaps between people.

2. The power of physical experiences: face-to-face events in geographies with difficult access 

Personal relationships are a huge part of Latin American culture. People trust other people and micro-influencers drive decisions amongst their networks while reaching acquaintances in geographies of difficult access that may not have digital networks or connections. 

Planing personalized, intimate, face-to-face events, visits, and product demonstrations for those who have difficulty accessing an online store or a point of sale is a great way for companies to reach potential customers where they are. This takes away the difficulty to get to know the brand and purchasing process from the client, hence making it easier for them to buy.

With S4DS’s party plan modules, it’s super easy to plan and follow up party plan demonstrations within intimate or larger groups of people while managing the sales, RSVPs, locations, promotions, and after-event follow-ups online along with many other useful tools in a single platform.  

3. “Whatsapp” is a regional standard for Customer Support

WhatsApp is very popular in many Latin countries. It has become the principal tool of communication for most people with several telecommunications companies even making a standard for offering data packages with unlimited WhatsApp at a very low price or sometimes no extra charge. 

Most people that live in smaller towns and are not necessarily savvy in digital techniques or may not own a computer still would most likely have a cellphone and would send instant messaging texts to communicate instead of making a call.

Many in Latin America communicate using WhatsApp at any time, from almost anywhere in any country. No matter if they have larger o smaller data plans, this makes Whatsapp the go-to tool for Customer Service and Marketing strategies. 

Direct Selling businesses have an opportunity to train representatives and employees on sales and customer service techniques that leverage WhatsApp and social skills to drive more sales while providing better customer experiences on instant messaging apps.

4. Consistent training for the sales force on Social Selling Techniques, Compensation plans, and leadership

Keeping sales representatives up to date is key for Direct Selling success not only in Latin America but in any region. 

Leveraging technology to train representatives during onboarding processes and throughout the selling experience generates opportunities to improve professional skills without disrupting business processes or decreasing productivity. This contributes to closing social gaps and empowering people from any background with digital tools.

It’s useful to make sure you train your representatives on:

  • How to sell online and in person by leveraging trustworthy personal connections
  • How to provide impeccable customer service
  • How to leverage technology to achieve professional and personal goals
  • Understanding your business’s compensation plan to optimize personal and network performance.

Make the most of your employee’s and representatives’ ability to improve sales by implementing S4DS e-learning modules and LMS capabilities and, offer them interactive learning methodologies to keep the experience flexible and dynamic. 

5. Market your brand positively with efforts supported by your products’ quality

Trust is everything in Latin American markets. Many people prefer to buy from companies they identify with and whom they feel are trustworthy.

When arriving in a new geography, leveraging Digital Marketing Strategies and potential alliances with micro-influencers is useful to help position your brand’s messages and products with the values you want to communicate to your potential audiences. 

Using communication and commercial tools with training and file-sharing capabilities such as S4DS’s tools is a great advantage to fully control your brand’s message while establishing a name for your business in a new region. 

6. Latin America is as diverse as the number of countries that form it: understanding the business model preferences in each one is essential

Different countries and cultures prefer unique sales models that adapt better to the behaviors of customers in each Latin country. No matter how close they may seem in distance, people in Colombia, México, or Perú are very different and have unique preferences. 

Understanding what a specific segment of clients wants within a single country, all while keeping regional characteristics in mind may make the difference for a Direct Selling or Multi-level company. Considering if a flat sales model or an MLM, or even if traditional catalog sales might work better for your business when getting to a new country is all part of the internationalization of Latin countries.

In S4DS we support all business models and have worked with leading companies within each. Our software is also capable of adapting to your needs to support various business models while offering multi-currency and multi-language solutions all within an all-in-one platform.

Experience the power of technology to breach geographical barriers and achieve international growth today by scheduling a free Demo.