An Overview of Direct Sales
November 7, 2007If you remember your mom’s Tupperware parties, you have had a preview of direct sales. Today of course, direct sales is more than just about Tupperware parties, it is a multi-million dollar business on a global level, and still expanding in terms of the numbers.
The potential is huge; even the big companies realize its potential. You can already see one manifestation of this realization – harnessing the power of a latent force: the home business partner. Developing home business partners have yielded more revenues for the company, reduced overhead cost, and enhanced customer care.
One of the biggest advantages of direct sales is the direct interaction between the seller and the prospective buyer. A direct and face-to-face interaction of this nature makes it possible for them to discuss the merits or demerits of a product. The customer may transact business immediately or ask for a rain check, which, looked at positively, still has the potential of a future sale.
Direct sales allow more leverage and flexibility in marketing a product. It allows the seller to adopt a unique individual style, if he feels that strategy would increase his rapport with prospective buyers. A salesman indulging in direct sales has the option of using a warm personal approach to attract new customers.
The other advantage of direct sales is the reach it provides. One satisfied customer translates to a number of other new customers, as that customer would definitely spread the word among family, friends, and peers.
The direct and real time interaction involved in direct sales provides a sounding board for companies to indulge in a product evaluation exercise. The feedback is straight from the customer, thereby making this a very effective tool companies can use to stay in the market and maintain and expand market share.
Direct sales can be a handy tool for both small business owners as well as corporate partners. However, it is vital that businesses educate themselves about the tools of the trade. They must be able to know the difference between direct sales and advertising.
Direct sales and advertising are two different entities with different areas of focus. The focus of direct sales should be to increase revenues by generating more sales and services, while the focus of advertising should be to increase community awareness of the product or service in question.
Most small businesses fail because business owners concentrate too much on advertising. They spend for the branding, change their business logo, and try reinvesting and reinventing their business, without paying any attention to direct sales strategies, which could have otherwise helped them recover the expenses involved with their advertising campaigns.
When a company adopts direct sales as a selling strategy, it should be sure the sales force they hire to execute the strategy are aware of their roles. The sales force should know everything about the different aspects of direct selling. They should be able to maximize the use of available tools, and have a good sales pitch to hook the customer and get him to buy the product.
The direct sales teams should also lay proper focus on improving their customer care skills, while sharpening their ability to grasp any sales opportunities that come their way and convert them into business. Everybody can sell; however you need to be fully conversant with the tools involved in direct sales to be a killer direct seller.
There are many different strategies a company can employ while implementing its direct sales campaign. Part of the direct sales campaign would involve posting banners and brochures about the company and the products in question. Sales teams need to ensure this information reaches the public, thereby creating awareness and curiosity about the company and its products.
Direct sales involve everybody in the company. It does not focus merely on the field agents’ marketing skills but leads the technical and financial support staff to review office sales records and receivables for those opportunities that would spell more sales and revenues. As in all business strategies, direct sales require the best timing to clinch the big sale.
Existing customers also need to be updated by phone or e-mail about new products and promotions. This is where the rest of the company, apart from the sales team, can pitch in. Having a regular team that looks after the updates and promotions makes the work easier, and the process of direct selling more streamlined.
Field agents actually doing the direct selling also need to have effective and easy access to the office data bank so they know whom to target. While cold calls are fine, in the case of direct sales that strategy may not be effective always. It can even be a waste of precious time.
Used effectively, direct sales can be a very potent weapon in increasing your company’s sales and have a positive impact on the bottom line. The key is to understand the way it works and pass on this understanding to the sales teams that would be implementing this strategy.
Wendy Stevens, Nashville, TN, as a single mom vaulted to the top of the Direct Sales Industry in 8 months. Wendy is a former 3-time Division I All American Lacrosse Player, NCAA Division I National Champion and Division 1 NCAA Head Coach. Wendy is one of the top 1% earners in the entire direct sales industry. As Marketer, Trainer and Speaker, Wendy is in demand nationally. She earned 7 figures in networking marketing. For information on Wendy, visit www.coachyoutosuccess.com
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