How to retain your network marketing customers
Ever since the Amway ruling, all network marketing distributors are required to have a certain number of customers. The problem was that most of the sales were made to incoming and current distributors. That put all of the emphasis on recruiting. If your company doesn’t have a minimum number of “outside of the company” customers, you’ll probably want to ask them about that. You should be careful in a company like that. The FTC could consider it a pyramid and shut the company down!
Now that I have all of the legalities out of the way, we can discuss why customers quit.
Once you have some customers, you want to keep them as customers, right? Of course you do. If a customer quits on you, you’ll need to go out and find a new customer to replace the old one. Having a revolving door for your customers is a very bad thing. You’ll spend a lot of time getting new customers and this will take time away from building a big organization of distributors.
The Rockefeller Foundation did a study to find out just why customers quit buying a company’s products. The results were fascinating!
A full 68% of customers said that they left because they didn’t think that the company cared about them. Another 14% said that they were dissatisfied with the company’s service. That’s 82% of customers left because of something the company did or didn’t do.
To fill out the rest of the results:
9% left to buy the product from another company
5% got a friend to provide the service
3% of the time the customer moved away
1% of the time the customer died
If one of your customers quits, there is an 82% chance that it is because of you.
What I find most interesting is that it doesn’t specifically mention price as a reason that the customer left. It may be that the price of the product is included in the 9% of people who left to buy from another company. Most people think that network marketing products are over priced. The statistics show that not many people quit buying the products due to the pricing.
Isn’t losing customers just part of the game?
Yes, you will lose some customers due to things beyond your control. Those are loses that are part of the game. However, you can see in this study that most of the losses are because of poor customer service or neglect. If you lose a customer because they felt like you didn’t care about them, that’s plain neglect!
No customer should ever walk away because they thought you didn’t care about them or their business.
Customer retention plan
Do you have a plan in place to help you keep the customers that you already have? Most distributors don’t have such a plan. I would say that this type of plan is critical to your success. Remember that most companies require you to have a certain number of clients. You must hold onto at least the minimum allowed.
My company requires us to have at least 7 customers outside of our own homes as one of the requirements to qualify to receive a check.
Since I know that the bulk of my compensation will come from sales other than my own sales, I’m willing to spend money in order to hold onto the customers that I have. I don’t spend a lot of money, but I do spend money!
I find out all I can about my customers. I find out when their birthday is and when their spouses’ birthday is too. I send out a card to each of them. I also find out when their anniversary is and any other important dates. Yes, I will mail a hand written anniversary card to them every year.
Other things you can do to keep your customers happy.
I will send them a rebate for one of the products that they use on a regular basis. I also will send a coupon for a new products just to get the to give them a try.
I don’t stop there. I try to call each customer about every 60 to 90 days. Just to touch base and see how they are doing. I ask about them and their lives first, but I do get around to asking them about their experiences with the products. This gives me a chance to gauge their level of enthusiasm for the products. They may want to convert to being a distributor somewhere along the line.
Calling them adds a certain and higher quality of keeping in touch with them.
I would suggest that you set up a customer retention program and make sure that all of your downline does the same things. This will greatly stabilize your volume and income as well.
Please share this article with your downline! It might help them!
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