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Build Trust Through Online Responsiveness

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The goal of a direct selling company’s online marketing strategy is building trust through personal relationships with customers.

The direct selling channel is based on the one-to-one interactions between independent consultants and customers. But what about the relationship between the company and the customer? What happens when negative comments appear online about a company’s products or services? And more importantly, what do you do about them to keep building consumer trust?

Customer Service

In the online world, comments and reviews are closely monitored. Millennials, the largest purchasing group, place more weight on word of mouth recommendations, and more than one-third of them prefer to wait until someone they trust has tried a new brand.

Many companies have implemented online chats so that customers can have questions answered in real time and any customer service issues can be resolved immediately. But it’s not just having that capability; it is how you use it to connect with customers. Here’s an example.

Two years ago, LinkedIn shared a hilarious chat between an Amazon customer support rep and a customer who had not received a book. (If you have not read it, click here.) While Thor and Odin (think movie Thor) roleplay was involved, the outcome went well beyond fun and a happy customer—it was the trust built between the brand and that customer as well as the instant sharing of the experience with the online community.

Does this mean you should train your reps in pop culture—Daenerys Targaryen and Jon Snow (Game of Thrones) speak or Dumbledore and Severus Snape (Harry Potter) talk? No, but making interactions more fun goes a long way in creating a lasting relationship and in helping to diffuse potentially explosive situations. Customers just want you to listen to them and help with issues.

Online Comments

Customers also want you to respond, more so than companies typically do. Uberall, Inc. recently released the results of its “Customer Review Report.” While the report focused on how shoppers evaluate brick-and-mortar store reviews online, the responses can be applied to direct selling, where storefronts are the faces of consultants.

Here are the results that might cause you to pause and reconsider your strategy for responding to online comments posted to your website or social media platforms:

Response frequency

65% of respondents believe brands should respond to every comment, whether the review is positive or negative. In addition, 18% believe they should respond only when the review is negative, while 10% feel they should never respond and 6% think they should only respond when the review is positive.

Takeaway: Have a proactive voice in conversations. Shoppers aren’t just looking for positive online reviews, they’re actually evaluating the quality of the customer experience based on online responsiveness.

Personal responses

More than 3 out of 4 respondents think responses should be personal. When asked how personalized a response should be to a customer review, 78% said that there should be some personalization. Forty-nine percent said responses should be “somewhat personalized,” while 29% said “very personalized.” Just 13% said “not very personalized” and 9% said “not personalized.”

Takeaway: Individualization is required to show that the brand cares about the customer. This is why platforms like Google and Yelp insist that businesses post personal responses versus generic, meaningless ones.

Responsiveness

More than 86% are likely to shop at a store that responds to reviews. Of that group, 47% said “somewhat more likely,” while 39% said “more likely.” Only 8% said “somewhat less likely” while 6% said “not likely.”

Takeaway: Consumers prefer businesses who care about them, and it shouldn’t be a surprise that personal responses to reviews show just that to consumers who research a business. Responding to reviews is great for brand perception, which leads to more new customers and repeat business from existing ones.

Importance of reviews

Nearly 75% think online reviews are important. When asked about the importance of online customer reviews for a store, 74% cited them as either “moderately important” (40%) or “very important” (34%). Just 20% said “slightly important” and 6% said they were “not important.”

Takeaway: Customer reviews are important, period. Three-quarters of those surveyed said they were either very or fairly influential. With so many options out there, stores live or die based on their ratings.

You don’t have to bring pop culture into your interactions with customers but be aware that making customer experiences fun and responding on a regular basis with personalization will help build trust and, ultimately, bring new customers.

CBD Symposium to Feature Youngevity CEO Steve Wallach

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Youngevity CEO Steve Wallach will be a featured speaker at upcoming CBD Symposium, hosted by SUCCESS Partners and Direct Selling News.

“Unquestionably, CBD has become the hottest topic in the direct-selling channel, and this event presents a prime opportunity for sharing information about CBD and how best to utilize the direct-selling business model in offering this transformative product to the public,” said Wallach.

It has been estimated that direct-selling companies will sell $300 million in CBD-related products in 2018, which would make direct-selling the largest distribution channel for this rapidly growing product sector. Youngevity is well-positioned to capitalize on the expected CBD direct-selling boom. The company recently launched Hemp FX™, a line of hemp-derived CBD products that includes three proprietary formulas that feature Youngevity’s hemp-derived, phytocannabinoid-rich, full-spectrum, organically grown CBD oil, and two tablet-based CBD products in the HempFX™ Hydration™ category.

“Hemp FX is an ideal representation of our plant-based approach to product development,” said Wallach. “These select products are being offered in this initial launch, and we expect the Hemp FX line will continue to grow, with more products becoming available in the near.”

The symposium will take place Nov. 6 in Dallas, Texas.

ORGANO Expands into South Africa

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Vancouver, British Columbia-based ORGANO recently announced it has formally expanded into South Africa.

The new market opened on Oct. 6. The company’s headquarters and logistics hub are located in Johannesburg.

“Our opening in South Africa represents another achievement in expanding ORGANO throughout the African continent and is an important component of our strategic growth plan for the EMEA region,” said ORGANO Managing Director of Global Strategy Leonard Chin.

ORGANO will offer a lineup of beverages and specialty nutritional products in South Africa.

“This latest entry into Africa represents a long-term commitment to the people of Africa through our Continental Africa Plan, our broader regional growth strategy for EMEA and our global plan to make ORGANO products more broadly available around the world,” said ORGANO Chief Operating Officer Norm Perrett.

USANA Q3 Net Sales Up 13.4%; Tupperware Down 10%

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USANA Health Sciences, Inc. (NYSE: USNA) and Tupperware (NYSE: TUP) have announced financial results for the third quarter of 2018.

USANA

USANA net sales were $296.8 million, compared with $261.8 million in the prior-year period, a 13.4 percent increase year-over-year. The company’s skin and personal care product category contributed approximately $9.5 million in incremental sales for the quarter. The company’s total number of active customers increased 9.2 percent year-over-year to 615,000.

Net sales in the Asia Pacific region increased by 20.2 percent to $239.6 million for the third quarter of 2018. The total number of active customers in the Asia Pacific region increased by 13.9 percent year-over-year. Net sales in the Americas and Europe region for the third quarter of 2018 decreased by 8.5 percent to $57.2 million, and active customers in this region declined 5.1 percent.

“We continue to see strong momentum in most of our regions, which is reflected in our double-digit third quarter growth,” said CEO Kevin Guest. “Our growth strategies and investments into the business are producing results and our team remains committed to providing the best overall customer experience at USANA.”

To view the full USANA Q3 2018 report, click here.

Tupperware

Tupperware net sales were $485.8 million, down 10 percent (2% local currency), including a 3-point impact from the 2017 closure of Beauticontrol and the combination of the NaturCare and Tupperware businesses in Japan. Emerging markets, accounting for 72 percent of sales, were down 9 percent (up 2% local currency). Established market sales decreased 13 percent (11% local currency), including a 9-point negative impact from the Beauticontrol closure and combination of units in Japan.

In Europe, sales were up 1 percent (6% local currency). In Asia Pacific, sales were down 8 percent (4% local currency). North America sales were down 11 percent (9% local currency and South America sales were down 24 percent (up 1% local currency).

“We are pleased to have achieved a return to growth in local currency sales, adjusted for the Beauticontrol closure and our actions in Japan,” said Tricia Stitzel, president and chief executive officer. “During the quarter we saw great progress in many of our initiatives to position Tupperware with more engagement, more access and more relevance. We have a fresh and invigorated leadership team that is focused on improving the fundamentals of our business and executing our Global Growth Strategy initiatives to drive change and deliver enhanced value for our shareholders.”

To view the full Tupperware Q3 2018 report, click here.

Paul Jarvis Named New Seldia Chairman

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Seldia, the European direct selling association, recently announced that industry veteran Paul Jarvis has been elected chairman.

Originally a banker, Jarvis became involved in direct sales in 1995 when he supported the launch of a direct sales company in Russia. In 2012, he participated in the launch of Organo Gold, and since 2016 has served as COO of the Juice Plus Company, leading its EMEA strategy.

As Seldia chairman, Jarvis will focus on working with the European Commission and other relevant EU stakeholders to ensure a favorable legislative environment for the sector; promoting the industry to a younger generation as a viable Uberesque opportunity; and harmonizing the national direct selling associations and modernizing their functioning towards digital technologies.

Jarvis succeeds Thomas Stoffmehl, who helped Seldia develop new communication tools and helped to strengthen the internal structure of the association.

Gen Alpha: Get Ready, ‘Cuz Here They Come

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Just when direct selling companies figured out how to engage with millennials … here comes Gen Alpha.

Over the last decade, companies have invested a lot of time and energy into marketing to millennials, who in April of this year surpassed baby boomers to become the largest living generation. They’ll have another decade to start planning for the children of millennials, Generation Alpha, when the first wave of them starts turning 18 in 2028.

What do you need to know about this cohort, the first generation that will be born entirely in the 21st century?

Say What! How Many?

With birth dates starting in 2010, the majority are just now entering school. Gen Alphas are expected to be the longest-living generation as well as the wealthiest, according to accounting firm Grant Thornton. It is expected that many will live to see the 22nd century.

According to the Pew Research Center, baby boomers peaked in 1999 at 78.1 million. Millennials are projected to peak in 2036 at 76.2 million.

And Gen Alpha? According to Mark McCrindle, the Australian generational researcher and consultant, 2.5 million members of Gen Alpha are born every week around the world. When all the members of this generation are born in 2025, they will number … wait for it … almost 2 billion!

Like Father, Like Son? Kinda, Sorta

Alphas are expected to be the most formally educated, wealthiest generation in history. And of course, you can expect that they will be better supplied with technology than any previous generation.

Like their parents, Alphas are going to expect the same interactive, responsive experiences from brands. According to Laura Macdonald, head of consumer of North America at Hotwire, “So if clothing companies start using AR to help people create bespoke experiences while shopping—which brands like Nike already are—Generation Alpha will expect the same from grocery stores, or even when it comes to buying car insurance.”

As for attention span? Fullscreen Media, an entertainment business with Gen-Zers’ multichannel use in mind, is already researching Alphas before they grow into its target audience. It is finding that the attention spans of Gen Alpha are showing more promise than their parents. When watching content with mom and dad, Alphas prefer to watch content eight minutes or longer.

And as for the world around them, many believe some of the characteristics found in Gen Zers will become even more prominent in Alphas, with the same pull toward multiculturalism and even further disintegration of gender norms. 

Do I Have to Think About This Now?

Well, no. But you should. Here’s why. Alphas are already guiding many of the purchasing decisions within their families.

In a July study called “Understanding Generation Alpha,” OnePoll conducted a survey, on behalf of Hotwire, of 8,000 millennial parents around the world with children between 4 and 9 years old. Their findings?

65 percent of these parents said the habits of their children influenced their last purchase. That number bounced to 81 percent among U.S. millennial parents.

  • About 31 percent of these parents believe tech matters more to their kids than toys, holidays or pets.
  • About 27 percent said they asked their kids’ opinions before buying a new TV, laptop, tablet or phone.

Get ready. There’s a new kid in town, so you might want to start your planning now.

Seldia Survey Shows Positive Impact of Direct Selling in Europe

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A new survey by Seldia shows direct selling continues to contribute to equality, entrepreneurship and growth in Europe.

In celebration of its 50th anniversary, Seldia, the European direct selling association, commissioned global market research group Ipsos to do a comprehensive survey into the lives of direct sellers in 2018. The independent study, revealed at Seldia’s 7th European Direct Selling Conference held on Oct. 17, was the first of its kind in over a decade. There were four major takeaways from the survey.

Direct selling is helping drive equality in European entrepreneurship.

Women are the driving force behind the sector’s success. Over 4 in 5 direct sellers are women, a figure almost twice higher than the European average for entrepreneurial businesses.

Direct selling offers inclusive business opportunities for people from all ages and backgrounds.

One in five direct sellers are aged 55 and over, and there are no educational barriers to becoming a direct seller. People from all types of educational backgrounds choose to be involved in direct selling, ranging from those with no educational background to those with post-graduate degrees.

Entrepreneurship is at the core of direct selling.

One in three direct sellers choose the sector because it offers flexibility and long-term supplemental income. The study revealed that the vast majority of direct sellers enjoy the independence, freedom and flexibility of their work. 

Direct selling is a thriving sector, contributing to the success of Europe.

The core of direct selling has always been personal connection between a seller and a customer. The study shows that 77 percent of direct sellers believe the strength of direct selling is the personalized service offered by direct sellers, and face-to-face meetings remain a popular way to buy and sell.

This model proves to be consistently effective, with a €29 billion in sales last year. In a world where it is becoming increasingly difficult to connect with others, direct selling continues to build communities and bring people together across Europe, contributing to our economies, both online and offline.

“The Ipsos study shows the many ways direct selling is improving the lives of citizens across Europe,” said Paul Jarvis, Seldia’s newly elected chairman. “Seldia is proud to see the positive trends of equality, entrepreneurship and growth continue to be felt by direct sellers, and we hope to amplify their voices at the European level.”

Direct Selling Leads Global Market in Sales of CBD Products

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Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018, making direct selling the largest channel of distribution for the rapidly growing CBD product sector.

“Interest in cannabidiol, or CBD, is rapidly transforming the consumer product landscape,” says Todd Eliason, publisher and editor in chief of Direct Selling News (DSN), which conducted the research. “The trends also indicate that global direct selling sales of CBD products could exceed $1 billion by 2020. Established companies as well as a growing number of startups have begun announcing their entry into the market.”

CBD is being credited with a growing list of health benefits and, as a result, companies from virtually every consumable category, including beverages, dietary supplements, skin care and pet products, are actively exploring business in the market. Direct sellers such as Kannaway and Youngevity International were among the first to offer CBD products.

CBD Symposium Nov. 6

Direct Selling News will be exploring the many factors related to direct selling companies’ leading role in the CBD market in an upcoming edition of the magazine as well as at a Nov. 6 CBD Symposium it is co-hosting with parent company SUCCESS Partners at its Plano, Texas headquarters.

To see the full release, click here.

USANA Supplement Awarded ConsumerLab Seal of Approval

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USANA’s Procosa® supplement, formulated to help maintain healthy cartilage and joints, recently received a seal of approval award from ConsumerLab.com.

“Having our products tested and approved by companies like ConsumerLab.com are vital in maintaining consumer trust,” said Dan Macuga, USANA’s chief communications and marketing officer. “USANA’s record of third-party approval on its supplements shows that we have always and will always put the quality of our products first.”

ConsumerLab.com is an independent assessor of the quality, purity and label accuracy of health and wellness products, putting each item through rigorous testing. To be awarded a seal of approval from ConsumerLab.com, USANA’s Procosa supplement had to contain 100 percent of the claimed amount of glucosamine used to keep joints and cartilage strong and healthy, and to meet quality levels set for disintegration.

“Healthy joints are critical to preserving an active, independent lifestyle,” said Dr. Brian Dixon, USANA’s executive director of health and science education. “The Procosa supplement is formulated with the scientifically advanced InCelligence® Joint-Support Complex, a combination of vegetarian glucosamine and Meriva®Bioavailable Curcumin that supports healthy joints. Additionally, the Procosa supplement promotes a healthy immune and inflammatory response to reduce pain after exercise.”

Noevir U.S.A. to Donate Portion of Sales to Manaslu Foundation

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Noevir U.S.A. is donating a portion of its skin care sales to help with conservation efforts in Nepal.

Tokyo, Japan-based Noevir Co., Ltd., Noevir U.S.A.’s parent company, started the Noevir Green Charity as a fundraising project aimed at natural environment conservation and social contribution. The charity has made a total of 17 continuous donations to the Manaslu Foundation, a school-building project for Himalayan children.

In an effort to expand the activities of the Noevir Green Charity, Noevir U.S.A. has begun donating part of the sales of its vegan-based skincare, Vie de Light, to the fund. Noevir, as a group, will continue working to ensure that the children of the future can inherit a rich natural environment, while receiving proper education.

Established by alpinist Ken Noguchi in 2006, the Manaslu Foundation built a school in 2012 and is currently conducting tree-planting around the school as part of its “Forest Revival Project.” The goal is to plant 30,000 trees by 2020.

Mary Kay Foundation Awards $1.2 Million in Cancer Research Grants

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The Mary Kay FoundationSM recently announced its 2018 cancer grant recipients.

The Foundation awards grants annually to top research institutions in the US that are conducting innovative research to better understand cancers that affect women. Since 1996, the Foundation has awarded more than $28 million in grants to universities and medical centers around the country.

With cancer being the second-leading cause of death in women, the Foundation has made it a priority to support research of cancers affecting women at US medical schools and research facilities. After reviewing more than 160 applications, the Research Review Committee awarded $100,000 grants to 12 leading cancer research institutions:

  • Dana-Farber Cancer Institute at Harvard Medical School
  • Vanderbilt University Medical Center
  • Rutgers New Jersey Medical School
  • University of Texas Southwestern Medical Center
  • UPMC Hillman Cancer Center
  • Weill Cornell Medicine
  • Washington University in St. Louis
  • University of North Carolina Lineberger Comprehensive Cancer Center
  • University of Wisconsin – Madison
  • UCLA’s Jonsson Comprehensive Cancer Center
  • University of North Dakota
  • University of Chicago

“We have seen previous grants lead to innovative breakthroughs in the study of breast, uterine, cervical and ovarian cancers and are thrilled with this year’s recipients,” said Michael Lunceford, president of The Mary Kay Foundation Board of Directors. “The Foundation’s commitment to cancer research is anchored by our founder’s legacy and carried on by the passion and support of our company and independent sales force to someday find a cure. By continuing support for these scientists and institutions we know we are continuing to better and enrich the lives of women everywhere.”

Immunotec Expands into Colombia

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Six months after expanding into Guatemala, Immunotec has officially opened for business in Colombia.

A grand opening event was recently held in the heart of Bogotá, Colombia’s capital city, attracting over 4,000 enthusiastic attendees. Immunotec CEO Mauricio Domenzain and Meredith Berkich, president of North America and Europe, attended the event.

“We’re tremendously excited to bring the Immunotec opportunity to the people of Colombia,” said Domenzain. “Their legendary warmth, passion and enthusiasm was on full display at our event. The entire Immunotec team and our field leaders are so proud to open up for business in Colombia. It’s a market I’ve always believed was perfect for Immunotec and our flagship product, Immunocal. Now we are here, and I cannot wait to see the energy that lit up our launch event change lives across the country.”

Domenzain led the private equity purchase of Immunotec that was completed in June 2017 (the company had been publicly traded on Canada’s TSX Venture Stock Exchange since 2007) and has made key changes to corporate leadership, including the recent addition of seasoned industry executives Mario Leyva as vice president of Latin America and director of Mexico, and Connie Galofre as country manager for Colombia.

Founded in 1996 with offices in Montreal, Mexico City and Houston, Immunotec now has a network of independent consultants in Canada, the Dominican Republic, Guatemala, Ireland, Mexico, the United Kingdom and the United States. The company plans to continue the momentum with expansion into other Latin American markets in 2019.