08.02.2018

Faberlic: Business case study about the benefits of understanding what motivates multi-level marketing consultants

News

If you work in multi-level marketing then you must have already thought about how to get more new consultants involved and motivate experienced people to boost sales. Improving loyalty among your current and future sales teams is only possible if you have a clear picture of their interests, goals, and needs. Faberlic uses ResearchMe’s services to better understand its consultants.

 What prompted Faberlic to want to know more about its consultants?

  1. An effective promotional campaign needs to be rooted in the personal interests of the distributors, we need to know more about them

 One of the most important tasks any multi-level marketing cosmetics company faces is retaining interest among its distributors. If consultants are not confident in the quality or use of the product they’re selling, they won’t be able to significantly increase sales. Mixing themes for upcoming product promotions with distributors’ personal interests (home, children, travel, etc) in this case can increase trust in the products and the distributors’ desire to talk about them.

2.   The experience of working with the most active salespeople could help attract new consultants: it is important to identify what motivates successful salespeople.

It is equally important to identify the professional motivations of the most active and engaged salespeople. A high salary, free education, company prestige, early access to new products, liking for the products – understanding these motivating factors helps you understand how best to reward high-performing consultants and develop the most appealing offers when seeking to attract new salespeople.

3.   Loyal customers can become good salespeople: it is important to understand that customers are open to making the move and joining the distributors.

As with any dynamically developing company, Faberlic constantly needs to attract new distributors who are engaged with the products: people who buy the products can, over time, become part of the active sales force, if they’re confident that the business will be profitable. Those who have been using Faberlic products a long time trust the brand and are looking for an additional income, and the company offers free training in multi-level marketing.

 

How did ResearchMe carry out its research?

  1. Enriching survey data

In order to compile a detailed ‘portrait’ of a Faberlic consultant including more than just the information on their gender, age, family and material status received via the application form survey, but also their interests, values, and how they like to spend their free time, we used the database of Faberlic’s 99,000 contacts compiled with their consent on the company website.

Then the database was compared with the publicly available information about these people in their social networks, making it possible to identify 86,000 people who order Faberlic products (87%).

During the research, the internet activity of people who placed orders between 15 April and 15 June 2017 was analysed in an anonymous and aggregate form. As a result, the internet preferences of Faberlic products’ distributors and consumers were identified regarding: beauty and health, country house and household activity, children and family, travel, job-hunting, entrepreneurship, education and training.

2.   Consultant segmentation by sales volume

Purchasers were also segmented, 27% of them, segment A, were counted as ‘active salespeople’. This group would rarely miss a campaign and were high-volume, high-value consumers. Segment B ‘potential salespeople’, at 31%, were average consumers who showed great potential for multi-level marketing, and then Segment C at 42% were ‘people buying products for themselves’, would only by products for their own or family needs.

How does this ResearchMe study help Faberlic?

  1. Ad budget savings

Segmenting consumers into groups by their interest in distributing cosmetics enabled the company to understand the proportion of ‘potential salespeople’ it could attract into working with them in the near future (31%). An analysis of the interests and motivations of each consumer audience segment made it possible to improve communication with them, and make it more personalised. Faberlic was able to save money on mass ad campaigns and could address each segment of its audience individually.

For ‘active salespeople’ the most important element proved to be the financial reward of effective sales and participating in loyalty programmes. For ‘potential salespeople’ it was learning about how lucrative sales could be and the other benefits of working with the company, such as free training in multi-level marketing. For those who purchase products ‘for themselves’ it was interesting new lines.

2.  Raising brand loyalty among consultants

Family and children, regular travel, additional income, as well as the chance to run their own business, grow their skills and work in a position where they are constantly learning – these were the key values shared by most Faberlic consultants. This is what the company management needs to stress in developing brand loyalty development initiatives for distributors.

 

 

CONTACT US