Attrition rates in sales are quite high and even h
Post# of 32974
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Posted On: 11/06/2019 9:36:28 AM
Attrition rates in sales are quite high and even higher in direct sales.
I like the table in the link below that shows you the difference between a 70% retention rate of distributors on revenue vs 100%. They use $1M revenue as an example. Look at the bottom line of after 10 years. $4M vs. $16M of total sales.
Now companies will never have 100% and direct sales companies probably would be happy if they even had 70% but you can see the value of retaining distributors. After all, without them, you have no company and no sales. Just products.
Now I know some great technology that is proven to retain distributors.
https://www.servicequest.com/the-mlm-consulta...retention/
Now lets talk about retaining customers. If you can do that, your revenue will at least stay the same and by adding new customers, it will grow. Double the customers, double the revenue assuming you are keeping them all. If you lose 50%, you have find that many more customers to just keep revenue flat. It's much cheaper to retain a customer than to find new ones.
The article below shows not only the key points of retaining distributors, but also customers. Notice for distributors, under Empowerment, it says - Providing the right tools and a system for success. Also training is another key point.
Now read through the key points of customer retention. All sound valid. Notice Education (i.e. Learn) is one of them. Staying on contact is as well.
This is why I think the new VERB Learn app is going to be invaluable to direct sales companies. They already understand why increasing customer retention by 5, 10 or 15 percent can make a big difference.
https://mlm.com/r-e-t-a-i-n-keys-to-distributor-retention/
I like the table in the link below that shows you the difference between a 70% retention rate of distributors on revenue vs 100%. They use $1M revenue as an example. Look at the bottom line of after 10 years. $4M vs. $16M of total sales.
Now companies will never have 100% and direct sales companies probably would be happy if they even had 70% but you can see the value of retaining distributors. After all, without them, you have no company and no sales. Just products.
Now I know some great technology that is proven to retain distributors.
https://www.servicequest.com/the-mlm-consulta...retention/
Now lets talk about retaining customers. If you can do that, your revenue will at least stay the same and by adding new customers, it will grow. Double the customers, double the revenue assuming you are keeping them all. If you lose 50%, you have find that many more customers to just keep revenue flat. It's much cheaper to retain a customer than to find new ones.
The article below shows not only the key points of retaining distributors, but also customers. Notice for distributors, under Empowerment, it says - Providing the right tools and a system for success. Also training is another key point.
Now read through the key points of customer retention. All sound valid. Notice Education (i.e. Learn) is one of them. Staying on contact is as well.
This is why I think the new VERB Learn app is going to be invaluable to direct sales companies. They already understand why increasing customer retention by 5, 10 or 15 percent can make a big difference.
https://mlm.com/r-e-t-a-i-n-keys-to-distributor-retention/
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