Using data and analytics to adapt to trends, retain customers and train distributors
If there’s one thing the entire direct selling industry can agree on, it’s the need to look for competitive advantage wherever it takes us: new markets, new products and new ways to become more efficient and profitable.
Traditionally, distributors relied heavily on intuition, trends and past performance when making strategic decisions. But now, with access to data at an unimagined level, this approach is no longer sufficient. Competition is fierce; customer expectations are evolving; and market trends are shifting rapidly.
Use an Industry Compass
Data and analytics provide a compass, guiding direct sales companies towards success by uncovering previously hidden valuable insights—insights that shine a light on hard-to-find costs and difficult-to-imagine revenue streams.
By leveraging advanced analytics tools, we can gain a deeper understanding of customer behavior, preferences and needs from data we already own and have access to but have not yet mined to the degree that is necessary in this current competitive climate.
This knowledge can be leveraged to identify cross-selling and upselling opportunities as well as develop targeted marketing campaigns and personalized customer experiences. Through data analysis, companies can tap into new revenue streams and optimize existing ones, ultimately driving business growth.
Historically, direct sales companies that have utilized data analysis have done so internally. “A lot of our clients have built data and insights packages, whether it be Domo or Tableau, but they’re often comparing themselves to themselves…which is not exactly an objective way to utilize actionable intelligence,” shared Jack Farris, Chief Sales Officer at Exigo. “We help customers not only compare their data to their previous activations but—more importantly—compare themselves to the industry at large.”
Optimizing Your Data
Another key area where data and analytics enable direct sales companies is optimizing their operations and improving efficiency. By analyzing sales data, companies can identify bottlenecks in their sales processes; understand the factors that contribute to successful sales; and uncover areas for improvement. This can lead to streamlined workflows, enhanced productivity and reduced costs.
For example, data-driven insights can help identify the most effective sales channels, allocate resources efficiently and optimize inventory management. By using data to drive operational decisions, companies can achieve significant cost savings and boost their bottom line.
In addition to improving revenue and operational efficiency, data helps companies stay ahead of the competition by identifying emerging trends and consumer preferences. By analyzing market data and customer behavior patterns, direct selling companies can gain a competitive edge by adapting their product offerings, sales strategies and marketing campaigns to meet changing market demands.
For instance, data may reveal that a particular demographic is showing a preference for a specific product feature or that a new distribution channel is gaining traction. Armed with these insights, companies can pivot strategies; capitalize on market trends; and outperform competitors.
Jim Marks, Senior Vice President of Sales at Exigo warns this can cost a pretty penny. “There’s a significant cost associated not only with developing your own data and analytics package but also maintaining it over time. The value proposition is clear with our Exigo Insights suite. We listened to the feedback and needs of hundreds of customers, and now it’s time to move the needle on your business at a fraction of the cost of doing it yourself.”
Some notable enhancements to Exigo Insights since its launch include:
- Industry Comparison Data: real-time data from across the industry. Compare your performance with the industry averages and see where you stand, helping you to create a data-informed strategy.
- Retention Data: identify trends; understand what factors contribute to customer loyalty; and implement strategies to increase retention rates.
- Commissions Data: comprehensive insights into your payout structure, helping you to optimize your compensation plans and make them more appealing and effective.
- Distributor Analysis: detailed distributor analysis, providing visibility into the behavior patterns of different groups over time, helping you to tailor your strategies and maximize customer lifetime value.
Not Just Data but Actionable Insights
However, it’s important to note that the real value of data lies not in its mere existence but in how it’s transformed into actionable insights. Tools like Exigo Insights allow companies to generate valuable reports; conduct predictive analysis; and develop data-driven strategies. Moreover, they enable companies to make data accessible to all stakeholders, empowering teams throughout the organization to make informed decisions based on evidence rather than guesswork.
Still, many direct sales companies struggle to fully embrace this transformative approach. Common barriers include a lack of data literacy, inadequate technology infrastructure and cultural resistance to change. Overcoming these obstacles requires a shift in mindset and a commitment to fostering a data-driven culture.
“We always tell our customers who are reluctant to embrace this next level of operational analysis that your data tells a story. Whether you like the story or not, the data reveals the good, the bad and the ugly of your business. Who are your heavy lifters? How can we or how should we focus on them? What’s working and not working in your operation? What’s working across the industry?” said Marks.
Leadership must champion the adoption of data-driven decision making and create an environment that values data as a strategic asset to run the business more efficiently first then grow it further. “To me it’s simple,” shared Farris, “as a leader you must do whatever you can with your data to drive actions and drive revenue. This is now totally available to anyone in direct sales.”
Remember, the dollars are in the data. It’s up to you to find them.
In an industry that demands adaptability, Exigo delivers unrivaled access to the data that drives your business, from CRM to transactions to commissions. With Exigo’s proven, powerful performance, the possibilities are unlimited. Does your tech stack have you feeling lost? Find your way back to real growth, unmatched accuracy and security, and lightning speed with Exigo. Contact us with questions or to schedule a demo.