There are few innovations that rival the potential impact of budding Artificial Intelligence (AI). In the same way the internet upended everyday communications and ultimately became the shared platform for everything from shopping to entertainment, AI is now poised to shift the traditional paradigms that leaders depend on to succeed in business.

Machine learning and AI improve and develop exponentially faster than any analog or human-driven technology could, so understanding AI means leaving room for relentless advances, changes and new offerings. This is the undeniable challenge that most leaders have become accustomed to when it comes to implementing new tech. It is constantly reinventing itself. With AI, however, this evolutionary process is supercharged. New apps, platforms and tools emerge weekly, daily, even hourly, as this trailblazing technology builds upon itself.

Change like this typically solicits two reactions—acceptance or rejection. While some executives see AI as jet fuel for the engine of their business that can propel them further, faster, others may see it as exciting but scary—something that is to be feared until we know how to better control it.

An argument could be made for both of these responses. But the truth is, most people are already utilizing and relying on AI without even realizing it. Siri schedules our appointments; Netflix learns whether we like rom coms or horror movies; Waze keeps us from getting lost; and our Apple Watches keep track of our steps. The forward motion of this technology is already in place. Regardless of whether leaders within the direct selling industry choose to embrace AI or not, an undeniable movement is underway. From this point on, AI will bring a competitive edge that simply can’t be replicated through traditional practices. The remaining time direct selling companies can stay relevant and competitive without AI is dwindling.

The only remaining question is how long will you wait?

It’s Not Too Late

Technology moves so quickly that it can be easy to feel behind. The good news is that the experts in this field are not lightyears ahead of everyone else. The technology is so new and fresh that the learning curve is still solidly in place.

More than that, expertise in this field isn’t necessarily the goal. Leaders don’t need to become savants in AI and its many iterations. They simply need to adopt a few simple ways to wield it and let the technology do the work for them. There is no need to know the nuts and bolts behind every platform.

There is growing concern that implementing AI will eliminate jobs and downsize employment opportunities. But Blake Mallen, Billion-Dollar Brand Builder and Host of DSN’s Direct Selling SHIFT Podcast, believes that instead of replacing humans, AI is a toolbox that can be used instead to inspire and equip the team members already in place in a way that amplifies their natural gifts while minimizing the impact of tedious tasks that slow down progress.

“AI is really practical; ridiculously low cost; and highly effective,” Mallen said. “We’re at a time when we can give our team what feels like superpowers.”

What AI Can (and Can’t) Do

Typically, when new technology breaks onto the scene, companies need a dedicated staff member who can gain expertise in that field, and then bring accommodations to the organization in a way that makes sense for the business as a whole. With this next generation of AI, that learning gap has been eliminated.

“Now there’s no-code tools,” shared Brandon White, AI expert and File Finder Founder and CEO. “That means they have written an interface that you can interact with on top of the actual technology, and what that allows you to do is basically use AI tools like you would a browser or a word processor.”

This user-friendly format doesn’t mean that AI doesn’t require supervision. ChatGPT, for instance, is a language model that pulls from pre-existing information online to provide responses. That can be incredibly resourceful—as long as it’s building answers based on correct information, rather than corrupt sources. There is still the need for a strong human component within this artificial world.

For now, AI particularly shines when it comes to customer service, data analytics and work flow automation, but the niche is rapidly evolving. New companies and platforms are popping up every single day that are utilizing the power of GPT-4 to pre-write prompts for users that will provide the results they are looking for.

All of these AI tools can save time, meet a tailored set of needs and deliver output far beyond the norm for capacity—as long as leaders lean into strategy first before rushing into total AI adoption.

“Identify the problems in your business first,” White said. “Don’t try to take AI and stick it in your business. Figure out where your problems are today, and then see if AI can fix those.”

AI Success Stories

eXp Realty Founder and CEO Glenn Sanford was one of the first executives within the direct selling industry to leverage the power of AI, describing his strategy approach as being “obsessed with the future to improve the present.” From the company’s virtual eXp World, which gives agents and employees their own avatars that can interact and attend meetings in a virtual campus, to its latest model, Luna, which leverages GPT-4 to assist agents with daily tasks; provide 24/7 tech support; and create brand compliant content generation, eXp is heavily focused on how AI can be used to free up agents’ time to focus on the most critical tasks in their businesses.

“Luna is just our first step toward using AI to empower agents,” Sanford said. “We believe that AI can be used in the metaverse to increase productivity and cultivate creativity. Looking forward, we have AI tools coming out in Frame for meeting summaries, surfacing relevant content during conversations and even improving accessibility for hearing- and sight-impaired users.”

High-performing entrepreneurs looking for their next venture already know the power of AI. Companies looking to attract these momentum builders embrace the robotic prowess of AI that allows users to scale quicker than would be possible without the propulsion of this technology to support them. There seems to be no limit to the potential and possibilities that AI presents the business world, but White wants leaders to remain optimistically aware of the pitfalls and shortcomings this technology presents.

“A word of caution,” White explained. “Unless you are running your own AI large-language model internally, be careful about putting your data into the AI system. The back end to these tools is ChatGPT, and if you read the fine print, it is sending that data back into their engine, which means your competitors can use that information. So, you do want to be careful. If there’s sensitive information, you do not want to put it into these engines.”

There’s an AI for That

Blake Mallen recommends 8 AI tools that take the heavy lifting out of everyday business tasks.

Otter.ai
Zoom and Meeting Note Taker
Voice-to-text transcription software that uses AI to turn voice conversations into searchable and shareable notes.
Try it >
Keep track of meetings without writing a word, then receive an actionable to-do list that can be sent to attendees. Take a picture of a whiteboard or presentation slide at an event during a recording, and it will insert it in line with the post-meeting transcript.

ChatGPT
Content Creation and Automation
AI language model that generates content that mimics human-like text responses.
Try it >
Reply to customer questions across social media; convert customers with generated emails that increase click-through rates; develop personalized training materials and scripts; and enhance customer service with a 24/7 customer support messaging platform.

HeyGen
Video Creation
Create videos using a library of AI avatars that support lip-syncing in more than 20 languages.
Try it >
Unleash a custom avatar complete with cloned voices; create a talking photo using only a portrait and text; produce studio-quality voiceovers.

Metricool
Social Media Simplified
Automate social media plans based on measurable analytics.
Try it >
Identify and analyze social metrics; streamline posting across all social platforms; enable content planning; monitor what content is getting the most traction; and manage ads.

ViralFindr
Content and Competitor Research Platform
Find the best-performing content, viral posts and top influencers online.
Try it >
Research high-performing content, study trends, determine what content works and generate content ideas.

Manychat
Chat Marketing
Drive sales even while on autopilot.
Try it >
Capture interested leads; drive sales and conversations online; automatically add customer contact info to a company database; engage with and attract customers.

Tango
How-To Guide Creator
Automatically document processes into a step-by-step interactive walkthrough.
Try it >
Document and create step-by-step tutorials, then share with a link or export by pdf.

Gamma
Flawless Presentations Fast
A fresh take on slide presentation preparation with user-friendly design.
Try it >
Create dynamic and visually appealing presentations without having to focus on formatting; utilize nested cards, publishing and analytics to engage with the audience; and add embedded GIFs, videos, charts and websites to documents, slide decks and webpages.

From the December 2023 issue of Direct Selling News magazine.

The post Give Yourself the AI Edge first appeared on Direct Selling News.

Using lifelike voices, businesses can effortlessly produce high-quality audio content without the need for professional voice actors. This can save time and offer flexibility in content creation for podcasts, video scripts, narration, translation and much more. Some tools can edit out the unnecessary “ums” or pauses, while others provide voice audio from complete scripts. “Make sure the script you are using is clear and concise, as this will make it easier for the voice-over generator to understand and produce accurate speech,” advised Speaktor.com. “Use the generated voice-over in a way that sounds natural and professional, this will make it hard for listeners to tell that the voice is generated.”

By converting text into spoken words using generated voices, businesses can offer an enhanced audio experience for their audience. Narrating text such as policies and procedures; distributor training; the option of having online text read to you; or having a voice guide you through details of a compensation plan can provide various audiences with choices to consume important content.

Several companies are dabbling in the virtual reality and augmented reality world, creating online avatars for employees and distributors used for meetings and presentations. Voice cloning can be used to further customize these avatars. For example, someone could select a specific avatar and voice when watching a business presentation. Some voice platforms can seamlessly translate into other languages while maintaining the same voice. This allows for localized content with authentic pronunciation with diverse audiences, breaking down language barriers especially when expanding internationally.

Virtual customer service is another area in which voice cloning can be used. According to Hubspot, 66 percent of customers expect companies to understand their needs and expectations. This means a personalized experience. Virtual customer service representatives with natural-sounding voices can handle customer inquiries; provide product information; and even assist in troubleshooting common issues. This can also be implemented in the form of an online chat where the agent guides the customer to the solution in a step-by-step, personalized way.

There are some potential downsides to this technology. Some voice generation can create awkward pauses or slight cadence misalignments, creating an overall robotic sound. Others don’t pronounce some words correctly, especially unique product names or words that can be pronounced different ways. There is a potential for misuse or abuse of cloned voices, leading to fraudulent activities such as deep-fake voice impersonations. Regulating the use of voice cloning among the distributor field will be a new frontier, and the corporate side will need to determine the most effective applications in line with company policies.

9 Voice Cloning Tools to Check Out

• ElevenLabs: Realistic voice cloning
• Descript: Voice cloning and video/podcast editing
• Resemble AI: Real-time voice cloning, text-to-speech converter
• WaveNet: Synthesized text-to-speech
• Rephrase AI: Build custom avatars
• Amazon Polly: Customized voice plus banks of lifelike voices
• Respeecher: Voice cloning for filmmakers and game developers
• Hour One: Build virtual twins with cloned voices
• Colossyan: Customize avatars that look and sound like you

From the September 2023 issue of Direct Selling News magazine.

The post You Don’t Say: AI voice applications for direct selling first appeared on Direct Selling News.

ChatGPT predicted the Philadelphia Eagles would defeat the San Francisco 49ers 27-10 in this year’s NFC Championship game. It was off by just seven total points, as the Eagles got the 31-7 win. So close!

The AI-powered program wasn’t designed to make sports prophecies, but it’s doing that and a whole lot more. Many experts say it’s in the early stages of disrupting many different industries—and it certainly could have an impact on direct selling.

What is ChatGPT?

ChatGPT is a free simulated chatbot created by Open AI originally designed for customer service, but its uses have multiplied drastically since it launched in November of 2022. More than one million people registered within five days to use the tool, and for now its usage limit is routinely at capacity. The “GPT” stands for “Generative Pretrained Transformer.” The natural language processor results in a more conversational style. ChatGPT’s data sources include thousands of textbooks, websites and various articles.

In a broader category, ChatGPT is a form of Generative AI, which Tech Funnel describes as a form of AI that “generates new material, such as literature, graphics and music. These systems are built on massive datasets and produce fresh material comparable to the training examples using machine learning techniques.” Another one of Open AI’s generative programs called DALL-E can generate illustrations from text prompts.

Launching ChatGPT Plus

In early February, Open AI announced plans for ChatGPT Plus—a $20-per-month subscription option. Subscribers will get general access to ChatGPT (even during peak times), faster response times and priority access to new features and improvements. The subscription service is available to U.S. customers with plans to expand access to other countries, but the free access option will remain.

“We love our free users and will continue to offer free access to ChatGPT,” a company announcement said. “By offering this subscription pricing, we will be able to help support free access availability to as many people as possible.”

What Can ChatGPT Do?

Other than help you with sports betting, ChatGPT can essentially perform as a personal assistant, teacher and content creator. Think of it as your all-purpose Gal Friday. It can create a healthy high-protein chicken recipe; answer complex math problems; write or debug code; compose sales pitches for a new product; create a blog post about new makeup application techniques; write a fictional story; or translate languages.

Users ask the program to perform a task in a text field, then it generates the relevant copy in another text box. Users can then customize the content to be more specific to their needs. ChatGPT can alter the tone of what it produces to be more casual, more technical, more professional—whatever voice you request. One of the major drawbacks to the program is that it currently only includes data up to 2021, but it is expected to update that soon. It’s not yet known how often data updates will take place.

How Could ChatGPT Disrupt Direct Selling?

One of the hottest topics surrounding ChatGPT is predicting the industries and jobs that the technology could enhance, disrupt or even replace entirely. In an article for TheStreet.com, Jeetu Patel, EVP of security and collaboration at Cisco, said “All professions have the potential to be disrupted by ChatGPT, presenting both opportunity and risk…We need to be very careful about the downsides, ranging from the need to address IP ownership, the rights of original content owners, the people behind generative AI-driven content and more.”

For direct sales, here are a few key potential applications:

1/ Write marketing copy

ChatGPT can generate sales scripts and various forms of marketing copy. This could be useful for different stages of a direct sales funnel including invitations, follow-ups and asking for a decision. It can also edit copy to be more concise or change the tone to be more inviting or conversational. For more general applications, it could be used to write emails; help with SEO ideas; generate online product descriptions and script presentations.

2/ Draft legal documents

The dynamic between corporate compliance and distributors is certainly unique to our industry. While ChatGPT might not be a direct sales expert (at least not yet), it can help write boilerplate legal language surrounding health and income claims that could be utilized by the field.

“There are parts of a legal document that humans need to adapt to a particular situation, but 90 percent of the document is copy pasted,” Professor Oded Netzer of Columbia Business School said. “There is no reason why we would not have the machine write these kinds of legal documents. You may need to explain first in English the parameters, then the machine should be able to write it very well. The less creative you need to be, the more it should be replaced.”

3/ Analyze customer data

Understanding what your customers want and determining patterns in their buying behavior can help shape product development, marketing strategies and forecast sales projections. ChatGPT can help with each of these. The program can analyze customer feedback and reviews; predict future customer behavior; group customers into segments; and analyze customer interactions such as chats and comments.

While the effects of ChatGPT and other similar language models are still forming, one thing is for sure: the program will keep improving—and up-to-date data will continue to be added. At the moment, it’s being treated as a content creation playground—try it out to see how it could best work for you and your team.

ChatGPT Speaks!

We asked ChatGPT to write five conversational-style scripts for a home business owner to invite someone to try samples of a product that helps with focus and mental clarity. The scripts were based around personalization, benefits, problem-solving, testimonials and urgency. Here’s what it generated:

Script 1 / Personal Introduction

“Hi [Name], my name is [Your Name], and I am the owner of [Business Name]. I came across a product that I believe can help you with focus and mental clarity, and I would love for you to try it. It’s a cognitive boost product that has helped me personally, and I know it can do the same for you. Would you be interested in trying a sample?”

Script 2 / Benefits Focused

“Hello [Name], I wanted to reach out to you because I have a product that can improve your focus and mental clarity, which is especially important in today’s fast-paced world. The cognitive boost product I am talking about has helped me and many others boost their productivity and overall well-being. Would you be open to trying a sample? I think you’ll love it.”

Script 3 / Problem/Solution

“Hey [Name], have you ever felt like you just can’t seem to focus or concentrate on anything for long periods of time? I know I have. That’s why I was thrilled to discover a cognitive boost product that has changed my life. It helps with focus and mental clarity, and I would love for you to try it. Would you be interested in a sample?”

Script 4 / Testimonials

“Hi [Name], I wanted to reach out to you and share something that has had a big impact on my life. I recently started using a cognitive boost product that has helped me with focus and mental clarity, and I’ve received great feedback from others who have tried it as well. I think you’ll love it—would you like to try a sample?”

Script 5 / Urgency

“Hello [Name], I have a limited number of samples for a cognitive boost product that I think will make a big difference in your life. It helps with focus and mental clarity, and I have seen incredible results in a short amount of time. I would love for you to try it before the samples run out. Are you available to try a sample this week?”

From the April 2023 issue of Direct Selling News magazine.

The post ChatGPT is Here first appeared on Direct Selling News.

There is a significant and powerful evolution happening right now in the channel. Direct selling is blending with the direct-to-consumer space and it is changing two very important dynamics in the industry: The nature of our relationship with consumers and the nature of competition itself. 

There are many simple and powerful platforms to choose from. Getting on an e-commerce platform should be high priority.

Traditionally, the relationship with the consumer has been managed by distributors. Companies have had limited ability to influence consumer behavior, both pre- and post-purchase, but those interactions are changing through a myriad of touchpoints across platforms and sales channels. Now, brands interact with customers every day, and we can no longer abdicate this responsibility or hand off the customer relationship. Instead, it must be owned.

Our capabilities to market and connect with consumers have increased, shifting us into the realm of direct-to-consumer, but the reverse is true as well. Direct-to-consumer brands are now realizing the power and potential of social selling, and are introducing their own commission structures and incentives for sharing their products.

While our products might not compete next to direct-to-consumer brands on store shelves, they are certainly competing in social feeds. It’s getting more difficult to cut through the clutter to win the share of mind and share of wallet that we all want.

This is driven, in part, by a change in customer behavior, but mostly, it’s being driven by technology. To succeed in this new direct selling world, we need to fully leverage and prepare for these technologies.

Consider how you can implement these digital strategies to scale an even greater relationship with customers through connection and customization.

E-Commerce

Having an effective e-commerce platform today is table stakes—it’s no longer an option. Today’s consumers are not willing to endure unnecessary friction to simply purchase a product. Our customer experience should have the same ease and convenience as every other site they purchase from on a daily basis.

Recently, I spoke to several Chief Information Officers in the channel and, by their estimates, less than 25 percent of companies in direct selling are on a modern e-commerce platform. There are many simple and powerful platforms to choose from, such as Shopify Plus, Magento, Skava and others, so, if you haven’t done so, getting on an e-commerce platform should be high priority.

Social Commerce

Prior to 2020, most of our companies were using social media platforms as part of our marketing strategies to build community. But today, most platforms are integrating purchase capability directly into their apps, so that the entire end-to-end shopping experience can happen without ever leaving the platform. This comes from awareness and product research, all the way down to product reviews and, ultimately, conversion.

While Facebook and Instagram haven’t yet integrated the ability to finalize a purchase directly on the platform, they’re working hard on it, and it’s only a matter of time before it is reality.

Video Commerce

Live commerce, or video commerce, is going to be the most important trend and have the biggest impact on direct selling, in my opinion. By 2026, it will represent ten to 20 percent of all e-commerce according to McKinsey. TikTok is leading the way through its new partnership with Shopify, with links in bio, fast checkout and integration with social payment tools.

Within the next few years, this is how I believe most of our field will market and how most of our customers will purchase.

M-Commerce

At the end of 2021, 70 percent of web traffic was coming from mobile and about half of all e-commerce sales happened through a mobile device. Not only are distributors growing and managing their businesses almost exclusively from their phone offices, but customers are increasingly engaging with our products, services, website and content through a mobile device. We need to ensure that we, as companies, have the right tools internally to enable this. Our sites must be responsive and we must have progressive web apps and mobile optimized content. We need to empower our distributor force with mobile tools, such as the NOW Technologies app, and allow distributors to onboard, communicate, sample and sell all from the convenience of their phones.

Influencer Marketing

Distributors are micro-influencers in their own right, but engaging influencer marketing at a medium or macro level can have a huge impact on generating awareness and positioning the brand. This must be intentional and targeted though, and we should establish a few key verticals or categories that our products play in that best represent the brand, and then partner with influencers and subject matter experts in those areas. Tracking these types of campaigns through tools like Tagger, Billo and Tracker will help ensure that the partnership is positioning the brand correctly over time.

Artificial Intelligence

Chatbots, product recommendations, upselling and cross-selling make a big impact, but what AI is really doing is driving a more personalized digital shopping experience.

In this vein, companies need to determine their best approach to managing a customer’s experience on Amazon. Amazon is now the second-largest search engine and it’s often the buyer’s first stop. It has an enormous impact on the brand experience and we have to engage with it. Inconsistent brand messaging in regard to multiple price points, varying product quality and a poorly managed Amazon experience can make a brand a mess. This experience should be owned by the company to firmly anchor a retail price point, position the brand properly, enhance positive reviews and ultimately ensure that customers have a positive overall experience.

Immersive Commerce

Many brands are creating cool and unique shopping experiences through virtual reality and augmented reality. This may look like walking through virtual stores to experience products, or, like Young Living has done, allowing customers to visit the company farm. While the full potential of these technologies is still yet to be realized, there is plenty of potential for new ways that customers can experience a brand in exciting, cutting-edge ways.

Performance Marketing

In today’s world, we have to pay for results, whether those results are traffic, views, leads or sales. Unpaid posts are no longer getting the reach and engagement they once were, and performance marketing is now imperative.

To accommodate this change, marketing departments need to be organized somewhat differently as well. We still need a dynamic and capable field marketing team and we need a performance marketing team that is digitally driven. These teams may have vastly different skill sets, but they need a shared mindset that supports distributors’ sales efforts and provides value to customers.

Marketing Automation

Tools like HubSpot and Marketo can streamline and simplify some of the most time consuming and potentially repetitive marketing tasks by sending out automated messages to distributors and customers based on their behaviors. Automating these actions nurtures relationships and helps move customers and distributors further down their paths.

Play to Your Strengths

It’s important to remember that all of these trending automations are not in conflict with distributor efforts. In fact, these tools and strategies enable us to partner even more closely to build the brand and drive additional sales volume within their organizations.

This is such an exciting time to be part of direct selling. We understand social selling better than any other channel, and we know how to truly bring personalization to purchasing. With these technologies, we can continue to do what we do best, but at an even greater scale. 

WAYNE MOOREHEAD has deep experience in marketing and brand strategy. He has applied his expertise and passion to help companies (from startups to Fortune 100) define, communicate and activate their brands. Wayne’s rare blend of experience and success has shaped his philosophy on effective growth strategies, and he believes the future of the channel will blend the best of direct selling with the best of direct-to-consumer.

From the January 2022 issue of Direct Selling News magazine.

The post Doubling Down on Digital first appeared on Direct Selling News.

BEFORE SMARTPHONES were in every pocket and tablets became as common as the personal computer, sharing the direct selling opportunity meant hosting an in-person event. Potential customers had to be local or willing to travel, and the main attraction was either a talking head at the front of the room or a recorded presentation listened to on a cassette player or watched on the living room TV and VCR that everyone gathered around.

Back then, customers based their purchasing decisions off what they learned from these talks or recordings, but all of that is ancient network marketing history now. While the inhome party is still effective for companies with tactile products that are dependent on the user experience, like cosmetics or clothing, it now must be coupled with digital events or marketing to compete for scale. For some companies, the cumbersome in-person pitch has become all but extinct.

The Subtle Sales Pitch

When direct selling and in-home parties went hand-in-hand, customers knew a sales pitch was coming. It was scribbled on their desk calendars and planned in advance. Today, the opportunity pitch is often so sleek that potential clients don’t even realize it’s happening.

“A lot of the presenting is done prior to them wanting to or knowing they want to buy a product,” says LifeVantage President and Chief Executive Officer Darren Jensen. “A lot of people begin following you on Facebook or Instagram and become involved in your life. The way [presenting] has changed dramatically is it has moved to the more raw, edgy everyday life. They learn from watching your life on social media.”

Distributors are now micro-influencers who seamlessly share curated content, their daily lives, products and business venture opportunities, without sounding like a commercial that today’s consumer can see from a mile away and intuitively dodge. In fact, today’s direct selling presentations often don’t look like a presentation at all. They can happen when a distributor goes live with a makeup tutorial and chats about how the business behind her favorite skincare products helped her pay off her student loans, or when a mom posts a quick story about her morning routine and includes the new vitamin-infused powder that’s helped her lose weight and–oh, by the way–also earn a few bucks. It’s usually followed up with a quick “DM me if you want to know more.” No high-pressure sales pitch. No information-laden flipchart. Just a trusted connection sharing a product or business they love.

It’s the same word-of-mouth advertising direct selling is known for, but souped-up, shortened to capture attention spans that are used to flipping through dozens of videos and pictures a day, and sandwiched in between updates about family vacations and the hot new sushi bar in town.

“ The way [presenting] has changed dramatically is it has moved to the more raw, edgy everyday life. They learn from watching your life on social media.”
— Darren Jensen, President and CEO, Life Vantage

Casual Presenting Winning The Day

Direct selling companies are learning to sink their teeth into this more casual presenting style by nixing the stuffy board room vibe and opting for entertaining resource videos that distributors can share with their followers. Following in the footsteps of Google and Facebook, direct selling companies like Prüvit, who use animation like a cartoon campfire to explain ketosis, are finding that animated videos can explain complex topics in a lighthearted fashion that connects in a way ordinary presenters can’t.

This casual presenting style only works if a dedicated following of fans or friends are listening, and distributors with LifeVantage have discovered how to leverage social media for this purpose as well. By utilizing the Ad, Tag, Message approach (or ATM), distributors gain access to a massive warm market simply by making friends through social media. By following this ATM method, Jensen says, average-sized teams within his company are bringing in on average 1,500 new customers and distributors a month.

The Magic Blend Of High Touch and High Tech

Direct selling presentations have evolved from live meetings in a living room or rented hotel conference room that were often cost-prohibitive, to links to recorded presentations available on YouTube or a company website that could seem cold. “The advantage of the hotel room was the presenter could tailor the presentation to the audience, take questions and have interactivity,” says SUCCESS Partners Senior Vice President of Business Development Noah Westerlund. “You lost some of that with YouTube and DVDs and left the prospect out there on their own.”

Enter Zoom, an online conferencing app that has become a go-to resource for distributors. The cost to host a conference is negligible and free to join as a guest, but most importantly, it provides the collaborative, live feel that’s often missing in high tech presentations. By facilitating real-time conversations between participants and including them, prospective customers feel like they’re on site even though they may be watching from their car or couch. Facebook Live is another resource trend connecting followers and potential customers. “We’ve embraced the high tech, but sometimes in doing so we forget the high touch,” Westerlund says. “This is a high touch business; it’s a relationship business—it always has been and always will be.”

“We’ve embraced the high tech, but sometimes in doing so we forget the high touch. This is a high touch business; it’s a relationship business–it always has been and
always will be.” — Noah Westerlund, SUCCESS Partners Senior Vice President of Business Development

Meeting People Where They Are At

The in-person meeting hasn’t been ditched altogether, but successful distributors are learning how to enhance that first touch and make it more effective and efficient. With Zoom and other developing platforms like it, teams can build their businesses without requiring more of potential customers than they are willing to give, by meeting people where they’re at and respecting their time, and distributors can achieve a cross country tour that used to require months of planning and execution in a single evening without leaving their desk. Technology can help business builders reach more people and reach them quicker, but the tried and true methods of knowing how to move people to action and connect on an emotional level will always be relevant.

“Who knows what the next presentation software will be, but here’s one thing I do know: one of the dangers of technology is we seem to think it’ll do it for us,” Westerlund says. “Look at how technology can facilitate those relationships but don’t look for technology to replace those relationships.”

Survival Means Simplifying

As Darren Jensen and his LifeVantage team were designing their internal artificial intelligence, they looked at who was doing the lion’s share of recruiting for their company and discovered that those making $350 per month or less accounted for 70 percent of the company’s enrollments, and those making $2,500 or less per month brought in 92 percent of all new enrollments.

The movers and shakers, they found, weren’t the elite high earners; it was the masses of people working it as a side hustle. Making tools—especially mobile presentation tools—that were simple to use became a high priority.

This urgency to simplify is one reinforced by Jensen’s friends in other industries, like leaders at Airbnb, Amazon and SC Johnson, who see direct selling positioning itself as too difficult, with confusing presentation tools and compensation systems that are too complex.

“Sometimes we get so myopic in our own industry,” Jensen says. “Amazon and Airbnb are entrepreneur creators like us. We’ve got to up our game. If we don’t, we may be beat at our own game.”

The post Biz Opp Presentation Trends first appeared on Direct Selling News.

1. AI and machine learning unmask previously hidden workforce data to make people-centric decisions. Artificial intelligence (AI) and machine learning will finally be woven into workforce management practices, revealing a treasure trove of data organizations have been collecting—but not using—for decades. With regular and digestible access to workforce data trends—like scheduling accuracy, absenteeism, overtime usage and burnout—predictive analytics will shine, helping organizations head off potential issues before they arise. Intelligent automation will also free up managers from admin-heavy tasks like managing schedules, approving time-off requests and shift changes while encouraging data-driven decision-making to provide clarity between what is equal versus what is fair. However, to harness analytical insights to make accurate, actionable decisions for specific employee and business goals, organizations must avoid a “one-size-fits-all” model.

2. Historically tight labor markets and emerging technologies put people managers in the spotlight. With unemployment low and the exodus of baby boomers reaching critical mass, employers globally will face a historically tight labor market. Sourcing great candidates has never been more difficult, and retention will become an all-out dogfight. While an employer’s brand, innovative hiring technologies and proactive recruiting practices are more important than ever, it’s organizations with the best people managers that will ultimately prevail. Organizations will place an increased focus on leadership development as a retention strategy—especially as millennials flock to middle management—and measuring manager effectiveness will be HR’s top challenge in 2019. Additionally, as AI and machine learning take over mundane managerial tasks, freeing up managers to spend more time with their people, deficits in leadership competencies will be exposed as management expectations continue to shift from a historical command-and-control model to a horizontal style that considers all perspectives and seeks innovative ways to inspire, develop, grow and keep the top talent that drives business value.

3. The changing face of education redefines trades and challenges traditional hiring practices. As the student loan debt crisis furthers the debate about the value of a college education and credentialing programs for job-specific skills emerge, tomorrow’s best employees may take an unconventional path to employment. Competencies that once required a degree—such as coding, robotics and data analytics—are being redefined as skilled trades with the rise of certificate and micro-credential programs. Also, as yesterday’s jobs become augmented by automation, new skills will be required for traditionally “blue-collar” roles. Employers must revamp their hiring profiles and remove traditional job requirements to tap into this new pool of qualified candidates who will staff the shop floor, store floor, hospital floor and top floor of the future. And, as millennials become parents, many will likely urge their school-aged children to take an alternative educational path for a brighter financial future.

4. Further fracturing of employment laws globally, nationally and at the local level strain organizations. From minimum wage to sick pay, to fair scheduling proposals to the right to disconnect, governments around the world will continue localizing—and repealing—employment laws. Ever-changing regulations around the world will put increased strain on organizations to avoid sanctions, fines, crippling class action lawsuits and reputation-damaging stories. Technology will be vital for organizations to manage scheduling-related mandates, ensure unbiased practices, monitor fatigue and overtime management and ensure employees are paid accurately and fairly, all while providing analytical insights that surface risky managerial practices otherwise buried in a sea of employment data.

5. Employee-agnostic flexibility, consumer-grade tech and the rise of the occasional time worker redefine “work your way.”All employees—salaried, hourly, and gig—crave control over when, where and how they work. While employers have put more focus on flexibility and alternative work schedules, most have been slow to reengineer processes that underpin how the organization runs. Tools must meet employees where they naturally work, such as on their mobile phone, tablet or favorite social networking platforms. The gig economy and emergence of the “occasional-time worker” will force organizations to replace traditional hiring and scheduling processes with systems that enable workers to choose when, where and how long they work. Mobile-friendly processes, self-service features and immediate access to real-time data in a consumer-grade technology wrapper will help drive the next iteration of the flexibility phenomenon, as predictability of anytime work will empower employees to be more productive, make more intelligent decisions and be more engaged.

6. Greater emphasis on disaster preparedness as part of a holistic human capital management strategy. Disasters large and small, natural and man-made, have unfortunately become the norm. Organizations worldwide have been challenged to respond effectively to increasingly frequent crises, with HR, operations and payroll forced to take center stage in the lives of affected employees. With more emphasis on company culture, caring and “doing what’s right” in a world where disasters—and a company’s response to them—are frequently in the news, there is a new level of expectation for an organization’s response, responsibility and employee benefits. Organizations of all sizes must take a hard look at disaster policies, processes and capabilities, including both taking care of employees in the moment and rebuilding in the wake of disaster, which will be near impossible for those operating on a DIY workforce management, HR and payroll system. Sustainability plans that today primarily account for company assets and data will need to incorporate employees and their families.

The post Top 2019 Global Workforce Predictions first appeared on Direct Selling News.

Whether you’re hitting the gym to burn off a few pounds, hitting the street to look for a new job or hitting those business goals you set for 2018, the start of a new year marks a time of renewal and resolutions—a great rebooting, so to speak.

As you will see, that’s what this month’s issue of Direct Selling News is all about.

In this month’s cover story, writer Heather Martin chronicles the efforts of a cross-section of direct selling companies to figure out the best ways to incorporate the latest technology tools into their businesses. The aim is to become more fully integrated into the economics of digital transformation, or the DX Economy. Big data, social media, artificial intelligence and cloud computing are just some of the technology trends that are helping to make shopping from direct selling companies what Walter Noot, the chief information officer at USANA Health Sciences Inc. in Salt Lake City, calls “stupid simple.”

And prescient segment leaders understand that anything that makes the customer experience stupid simple is simply smart.

Michael Oricchio

Take social media, for example. Gone are the days when having a strong social media presence was considered optional for direct selling companies. Social media is where consumers go first to connect with other like-minded shoppers, as well as to learn about new products and companies.

“Every one of these companies in the direct selling space has to be focused on social media first and the company second,” says Paul Gravette, co-founder of Le-Vel, the fitness-and-nutrition products company based in Frisco, Texas. “It’s more powerful than ever in moving the deal.”

Also in this month’s issue, you’ll learn about New Avon’s Espira health-and-wellness line of products debuting this month. It’s meant to “boost and sustain your natural energy, restore your radiance, and support your overall health,” according to Elana Gold, the company’s chief marketing officer. Of course, company executives also are hoping Espira will be a big boost to the New York City-based beauty brand’s business.

“Avon historically has been an iconic leader in the beauty category,” New Avon CEO Scott White said as he introduced the Espira line to an enthusiastic audience of about 6,000 representatives at a three-day sales conference this past summer. “We absolutely have a commitment to that, but we also wanted to give our representatives a broader portfolio to capitalize in a way that leads to new customers.”

This month, we also help Princess House, the successful kitchenware company based in Taunton, Massachusetts, celebrate its 55-year anniversary with a story on its latest collection and its new—and healthier—direction. Without giving too much away, you may be surprised to learn just how much the introduction of its new Vida Sana line says about the company and where it’s headed.

“Our products have evolved. The company and brand have evolved from breakable to durable—from crystalware to cookware,” CEO Connie Tang tells us. “Marketplace changes, preference changes and even demographic changes—to meet the needs of customers, consultants and business owners, an evolution has occurred.”

Finally, as it has for the past nine years, January marks the official launch of Direct Selling News’ annual Global 100 ranking. Our publication’s signature project has become one of the channel’s most popular events. Join the celebration on April 25 at the Renaissance Dallas at Plano Legacy West Hotel, when we’ll unveil the 100 largest direct selling companies in the world for 2018. Submission qualifications, ticket information and sponsorship opportunities can all be found at dsnglobal100.com. Naturally, any one of the magazine’s staff can answer questions about the research process or the program, so feel free to contact us.

In the meantime, we on the DSN team offer you our heartfelt thanks for joining us for our first issue of 2018 and our sincerest wishes for the happiest, healthiest and most successful of new years.

MICHAEL ORICCHIO
Publisher and Editor-in-Chief

The post The Great New Year Rebooting first appeared on Direct Selling News.

“The first time we were invited to speak at an industry conference I stood up there and made the comment that Ambit was a data processing company. We heard the snickers and laughter in the crowd,” Thompson said. “They thought we were crazy to build our own software. But we ignored them. We didn’t want to be like them, and we didn’t want returns like theirs. It’s all about returns on invested capital. Technology has enabled rapid scale at a low cost, and direct selling has enabled a very attractive cost of acquisition alongside very rapid growth.”

Eleven years later, Dallas-based Ambit is reaping the rewards of such a novel idea in the direct selling space. The company reached $1 billion in revenue before its seventh birthday and has been growing exponentially (270 percent between 2009 and 2016). It also is keeping a solid foothold, at No. 16, on the Direct Selling News Global 100. Executives’ early belief in using technology to send, collect, process, use, share and store data gave the company a head start in a race that everyone wants to now join: a race in which the advantage goes to those who harness the power of digital transformation (DX), a term coined by Massachusetts-based technology and analytics firm International Data Corporation (IDC).

In the DX Economy, smart companies focus on how to embed transformational technology at every level of their organizations. IDC projects that spending on DX technologies—such as data analytics, cloud-based infrastructure, application development and deployment, and any technology that helps a company redefine its operations—will increase from $1.2 trillion in 2017 to $2 trillion by 2020.

Within this new landscape, technology has now become so embedded in business strategy that the digital transformation of every industry, including direct selling, is now leading to seismic shifts in ways in which global business is conducted. Any company looking to stay competitive in the new DX Economy must think, act and plan like a digital native.

Direct selling executives know a little something about redefinition, as those in the channel adjust to new pressure from policy makers, look for new ways to compete in the omnichannel retail environment and respond to rapidly changing global business rules. Executives at some of the segment’s largest players say that if they focus their technology efforts and investments in such DX categories as social media, data analytics and the cloud—none of which are new, but all of which are necessary for remaining competitive—they will have the agility they need to keep up with and stay ahead of these monumental changes.

Social, Science

Using social media to fuel business growth shouldn’t be considered optional for direct sellers, says Paul Gravette, co-founder and co-CEO of Frisco, Texas-based Le-Vel, a fitness and nutrition products company. It should be an imperative. “Every one of these companies in the direct selling space has to be focused on social media first,” he says, because that’s where people go before they go anywhere else when they want to connect with each other and discover new products. “It’s more powerful than ever in moving the deal.”

Walter Noot agrees.

Social media is the new Google, says Noot, the chief information officer at USANA Health Sciences Inc., a nutrition products company in Salt Lake City. The holy grail for online marketing used to be the top spot on a search engine results page, he says. Now it’s the top spot in social media query results, being a conversation leader in Facebook discussion threads and having a prominent place on Pinterest boards. “At USANA, we’re building technology around social media tools,” Noot says.

As the largest company in direct selling, Amway has no doubt that leveraging DX technologies like social media should be among its top operational priorities. “The way people are interacting on the internet? That’s a huge opportunity for us,” says Todd Woodward, Amway’s vice president of communications. “We want people’s businesses to revolve around their lives; the beauty of direct selling is that we have a great opportunity in social and digital tools to make that promise come true.”

Recent studies of buying habits reflect what these executives are saying about the importance of social media. In a 2016 poll, consumer research firm Crowdtap found that 75 percent of surveyed Facebook users search the social media platform for pre-shopping advice and information. More than half of Crowdtap’s respondents said they search social media for discounts. In a 2016 PricewaterhouseCoopers survey, nearly half of online shoppers said that comments and reviews on social media influence their buying decisions; 16 percent said they purchase products directly on social media.

Savvy sellers are keeping pace with this trend and moving their ad dollars where the buyers are. Business development firm Zenith Media Services has projected that global ad spending on social media will grow by 72 percent from 2016 to 2019, at which point it will make up 20 percent of all digital advertising. And more than 70 percent of sales professionals in a 2016 LinkedIn study said they use social selling tools on a regular basis.

If any channel is poised to reap big rewards from the surge in social media commerce it’s direct selling, Noot says. “Social is the perfect tool for direct selling because direct selling is a referral business, and social media is a referral tool,” he adds.

So how do you reach through the trillions of social media users to find your next loyal retail customer?

Executives at the companies we talked to say one of the best ways is to let your top-performing social media influencers do it for you. These influencers—the company’s consultants—are people who have established credibility and bring authenticity and personalization to your products and your brand, and that’s critical to promotions and sales.

“When I’m buying a product through social media, if it’s done right, I’m not just buying from the company, I’m buying from the person,” Noot says.

When influencers post something about their experiences with a product, people listen and respond. More than 2 million people signed up for free accounts with Le-Vel in 2017, and company officials believe social media drove many of those connections. Not all 2 million new account holders immediately purchased product or have become promoters, but posts from Le-Vel promoters on social platforms inspired many people to share personal information with the company, and that’s how relationships start. “How fast our products are marketed is based on how we’re letting brand promoters market in a social media space,” Gravette says. “You have to embrace these people that have the individual ability to effectively put your product out in the marketplace.”

Dana Harrison and Haya Ajjan say there is scientific evidence that influencers extend a company’s reach. As members of the Direct Selling Education Foundation Fellows Program—a partnership that DSEF established to provide college professors with the tools to offer direct selling education to their students—Harrison and Ajjan consult with direct selling company executives and their sales fields to analyze salesforce, e-commerce and social media data. And they’re seeing that when a top performer shares news and information it spreads exponentially—as the influencer’s followers discuss and share the content because they trust the source. “If it’s a promotion that you want to go far, get it to the right influencer,” says Ajjan, an associate professor of management information systems at Elon University in Elon, North Carolina.

Mind Your Data

Whether it’s studying the “social influencer effect” or quantifying the results of a targeted marketing campaign, analyzing data should be a daily activity for all direct sellers, they say. “Being data driven builds a company toward a higher competitive advantage,” Ajjan says. Data analysis is certainly a booming component of the technology sector: IDC has predicted that global revenue for big data and business analytics will increase from $130 billion in 2016 to more than $203 billion by 2020.

So how do you become data driven? Start by making sure you’re capturing basic transactional data, like customer demographic profiles, geographic locations and purchase histories as well as distributor sales and recruiting volume. Don’t assume one kind of data is more valuable than another. All data have potential to reveal underlying trends and motivations among buyers and sellers—which is what you really want to know—so don’t disregard even seemingly benign information. “Companies usually have more data than they realize they have,” says Harrison, an assistant professor of marketing at East Tennessee State University in Johnson City, Tennessee.

It does take higher-level analytics to tap into that potential, though. Knowing that customers in a certain part of the country tend to buy certain products doesn’t tell you why they buy them. Acting on what you think is the obvious conclusion can lead you astray, says Ambit’s Thompson. “There were intuitive assumptions about some of our best customers that we thought would predict their behavior,” he says. “And we found out we were wrong.”

Ambit has had plenty of data to prove itself wrong because it’s been collecting it for nearly 12 years. Even before big data was a big deal, Ambit executives believed there was value in catching and keeping every figure and fact—especially in the commodity business. “We are in a highly competitive space, selling commodity products that are exactly the same,” Thompson says. “The lights shine equally bright; the heat comes out exactly the same way; there’s no quality differentiator in our electricity or natural gas. It’s how they are packaged and how our customers are treated that make a big difference.” To reach and keep its 1.2 million customers, Ambit has to know exactly who will pay for what kind of package.

Noot and his team at USANA look at their data constantly. From web traffic to connection speeds to the percentage of people who self-enroll versus those who are enrolled by someone else, all data feed USANA’s analytics systems, which dissect customer and distributor behavior and learn from it. This machine learning, or artificial intelligence (AI), is at the center of the DX economy, experts say. It makes otherwise static data dynamic.

The algorithm at a company like personal stylist brand Stitch Fix, for example, combines information on the kind of clothing a customer says she likes with information on what she buys and sends back, and over time it “learns” to anticipate fashion choices that even the customer doesn’t realize she is going to make.

Harrison and Ajjan referred to Stitch Fix and other AI leaders, such as Facebook and education-focused technology company Coursera, in their presentation at the Direct Selling Association Fall Conference in November 2017. These companies have reached a higher level of maturity on the “data analytics infusion” model, the professors say. They’re not just analyzing and predicting consumer and consultant behavior, either. They’re using AI to automate key functions at every level of the business. But they also are using AI to augment key human functions, because you can be king or queen of a world of data and still miss a mark, according to Noot. “Logic goes out the window a lot of times in this business,” he says. “We look at trends and sales and numbers, yet there’s such a thing as emotional momentum. You can’t describe it. You can over-predict and overanalyze.”

This is where human intelligence comes back into play. Companies that are successful with AI—which Forrester Research predicts will be a $100 billion market by 2025—know that the brains that created AI didn’t trigger their own obsolescence. These businesses understand how to make AI and humans complementary. “It’s important to keep humans involved,” Harrison says. “As we think of AI, we often consider the possibilities that it will take over our lives, but humans are still critical for unstructured tasks that require high personal touch.”

Cloud Computing

The place that social media has in direct sales and the amount of data companies need to benefit from the DX Economy wouldn’t be possible without the cloud, the system of web-based storage, infrastructure and software and one of the biggest segments of the technology market, according to executives. A recent Forbes article predicted that spending on cloud-based data centers, software and IT services is expected to reach $547 billion by the end of 2018.

“In order to play around with your data, you need cheap space,” says Ambit chief information officer John Burke. “The cloud has allowed us to pour our data into inexpensive space, and the tools have become available that allow us to analyze it.”

Le-Vel certainly wouldn’t be the company it is without the cloud—being completely virtual is core to its brand, according to Drew Hoffman, chief operating officer and chief legal officer. “We’ll do more than $500 million in revenue this year, and we have 55 corporate employees and no office,” Hoffman says. “You just can’t operate efficiently and effectively when you’re that lean without having the right technology, like our custom cloud infrastructure.”

For example, the cloud allows Le-Vel to disregard geography when it comes to hiring. “If we need to add anyone new to the staff, we’re not limited to a radius of resumes. We don’t care where they live.” Cloud technology also allows the company to provide front-line customer service via a completely online support system. While its method is different from a chatbot system—which simulates human responses to basic customer questions—Le-Vel does use smart technology to analyze, prioritize and direct tickets to the proper service representative, reducing the number of customer service staff it needs to employ.

Robust virtual technology has been a major factor in Ambit’s success, too—especially in its international wins. Its recent expansion into Japan took time at first because of how careful the Japanese are about forming partnerships with non-native companies. But once the deal was in place, “we were able to spin up our environment in Japan very quickly because of the cloud,” Burke says. Switching Ambit’s data load to local Japanese data centers—to comply with the country’s data management requirements—would have been much more cumbersome if the engineers hadn’t basically been able to flip a virtual switch.

“Stupid Simple”

Data feeds. Chatbots. Servers and software in the sky. It all can seem, as Burke says, “kind of out there, kind of ‘Star Trek.’ ” But these direct selling executives say it all helps their companies create the most important thing they can offer their customers: personalized experiences that feel low-maintenance because they’re so high-tech. Experts call it the Amazon effect. “Amazon just really made it stupid simple,” Noot says. “You push one button or two buttons and you’re done.”

We want to be able to buy clothing, housewares and services from our mobile phones while we wait at the curb to pick up the groceries we ordered online. And we want our web-based merchants to remember who we are, know what we like, tell us what we might also like, and remember how we pay. “Direct selling companies that do not to have a website that personalizes experiences will be at a disadvantage,” Ajjan says.

Direct selling companies are investing heavily in technology and expertise to make sure to meet customer expectations and stay competitive within the channel and within the general marketplace. Ambit spends 95 percent of its capital expenditure budget on technology, Thompson says. USANA employs hundreds of IT people, Noot says, and its technology expenditures fall in the “sales general and administrative expenses“ category, which saw an increase of nearly $7 million in the third quarter of 2017, compared with the same quarter in 2016. Overall from 2015 to 2016, USANA’s expenses in that category rose by $25 million.

One thing seems certain—operating successfully within this new landscape of digital transformation requires a high level of awareness and commitment on the part of company executives. Is your company prepared to compete in the DX Economy?

January 2018

Click here to order the January 2018 issue in which this article appeared.

The post Technology Trends: Are You Ready for the DX Economy? first appeared on Direct Selling News.