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Introduction
Although many brands now sell direct through the rise of e-commerce brand sites and even s-commerce (social, e.g. selling through facebook), for the purposes of this case study we pay closer attention to the more classic direct selling style. This piece examines companies that still sell through representatives in person, in order to find key learnings that might be applicable to any business faced with todays challenges of advertising bombardment, reduced human contact through technology and intense competition for spending. The idea of door-to-door selling inspires mixed reactions; some people think of intrusive and annoying sales people, whereas others see an opportunity to get closer to brands they love, with a better service Either way, direct selling is a growing channel opening up opportunities for manufacturers to reach more consumers in a closer way, an opportunity many companies are seizing Direct sales reached $132 billion worldwide, growing 12.4% last year The USA is the #1 direct selling county, at $29.6 billion and with a sales force of more than 15 million independent contractors, Japan is #2, Brazil #3 Although in some industries and geographies, direct selling has developed a negative reputation, there are valuable lessons to be learned from those companies that have carved their success through this channel
From the key benefits and success factors of door-to-door, we can learn how brands can build and profit from: Trust Passion Community
http://www.directselling411.com/for-sellers/myths-facts/ www.dsa.org http://www.businessforhome.org/2012/02/direct-selling-2011-growth-9-2-for-public-companies-amway/
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Trust
In order for door-to-door selling to be successful, shoppers must feel trust in the brand and the salesperson; this form of selling hinges on personal relationship more than conventional retail does, heightening the importance of service At the same time, the direct selling method is an opportunity to earn closeness to the consumer and to build trust in a meaningful and personal way
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http://www.kentgrayson.com/Grayson%20Archive/directsellingchp.pdf http://mansmith.net/index.php?option=com_content&view=article&id=220:direct-selling-as-a-sustainablecompetitive-advantage&catid=43:direct-sales-a-multilevel-marketing&Itemid=44
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http://www.nytimes.com/2011/11/03/business/smallbusiness/j-hilburn-wants-to-sell-online-casestudy.html?pagewanted=all
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Passion
To create convincing direct sales-people, the brands they represent must be built around passion and instil this into their representatives to create advocates Through building personal relationships with consumers, providing a social aspect to their contact with the brand and developing their product knowledge better door-to-door selling can be a catalytic way to grow passion around a brand
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Experience: Many direct selling companies aim to create an engaging experience at the point of sale (in the home), providing a talking point and fun memories of the brand that will be shared with others, for example WIV Wein provides at-home wine tastings for customers before they buy Party experiences can be a good way to sell and promote passion for fun / interesting products. For big investments items, experience (e.g. trial) can help to reassure
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Community
By adding a personal and social aspect to the buying and selling of products, brands that sell door-to-door become part of the community At the same time, the direct selling channel helps to build communities centred around brands, which improves advocacy and loyalty
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Summary of Learnings
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