Although the COVID-19 pandemic affects many sectors in various ways, the Multi Level Marketing sector is particularly susceptible, given its dependence on face-to-face contacts and an efficient worldwide supply chain.
However, exclusive research of L.E.K. Consulting shows that customers require more than ever many of the goods offered by this sector.
We also think that recruitment may be an extraordinary boon since many who suffer from job displacement and other reductions might see direct sales as a reasonably appealing career perspective.
Indeed, direct sales firms may position themselves in many ways to cope with the COVID-19 epidemic; we are here to deal with it.
During our upcoming two-part COVID-19 and direct sales series, we will discuss how direct sales businesses may not only cope with the epidemic but also flourish long-term.
This post discusses some of the possible impacts and the ways to deal with the post-covid marketing world of the direct selling industry in 2021.
The COVID-19 epidemic is anticipated to have a major impact on the direct sales sector. This is because direct sales have historically depended on face-to-face contacts via live shows.
The social separation regulations and refuge rules imposed by federal, state, and municipal health authorities have already had an acute effect on the direct selling business model.
According to a survey of around 2,000 U.S. consumers by L.E.K., about 85% of customers feel negative about the coming year.
Because of this and the sharp rise in unemployment, we expect a continued drop in non-essential spending. Customers have already reported reducing their monthly spending in many direct selling categories.
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A second mitigating element is a probable shift in the receptivity of direct sales to the business proposition through multi level marketing software or MLM software.
The combination of increased flexibilities for working from home for the masses and the genuine and urgent necessity for many to look at additional or alternative sources of income will transform the recruitment paradigm.
One good element of an otherwise terrible humanitarian catastrophe could be the growth of direct selling businesses’ potential talent pool backed by MLM software.
Due to L.E.K direct selling expertise and an evaluation of how top direct selling businesses have so far reacted to the crisis of COVID-19, there are many strategies that brands in this area may use to position themselves to resilience during and after the pandemic.
Direct selling distributors usually depend on two main approaches:
Despite assistance initiatives from the Direct Sales Association powered by multi level marketing software or MLM software and others, the whole length of the breakdown is probably a major problem for individual distributors that rely mainly on new clients.
On the other hand, distributors that build current connections will be more likely to adopt, keep virtually their relationships and continue to produce revenue.
Direct selling companies should support their distributors by making repeat purchases easier.
Companies can help by:
Some companies, like Avon, have improved their distributors’ online stores. Others have expanded e-commerce options for loyal customers.
However, companies must balance online selling with the personal advice and relationship-based selling that distributors provide.
Because in-person events are limited, direct selling companies must think creatively and develop digital alternatives.
Distributors need tools for social selling and virtual meetings. For example:
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Organizations that may directly help to respond via the production of medical goods, donations of money, etc. might develop strong connections with prospective B2B customers and enhance the brand image of both distributors and consumers.
For example, Amway started manufacturing hand sanitizers and donated them to hospitals in Michigan and subsequently received considerable positive news.
Avon donated masks, soaps, and other hygiene products all over the world; and Nu Skin donated funds, air purifier and masks throughout Europe, Asia and the United States recently.
Numerous methods may be used to directly market brands to survive the COVID-19 epidemic. There are obviously methods such as multi level marketing software or MLM software that assist from concentrating on repeater customers and integrating COVID-19 advice in wider health and wellness topics to highlighting the advantages that direct sales provide new employees.
Directly selling brands have weapons in their arsenals that may not even be aware that in these unusual times they will serve very effectively.
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