Why Diversity is key for Direct Sales Long-term Success

Diversity Hero Bg

The Difference between Diversity and Diversification

Diversification & Diversity are very different. Yet, the uniqueness of the direct sales industry often means that by achieving one, you achieve the other. 

How? Because, with Direct Sales, there are two unique values being provided. 

  1. the physical product or tangible service, but equally
  2. the distributed salesforce that is the USP of the business model.

By diversifying the field, through a greater focus on diversity, a natural byproduct will be direct access to a larger, more diverse customer base.

3 Issues Caused by a lack of Diversity

Beyond the obvious reasons for wanting a larger customer base, there are several unique issues surfacing that demand that direct sales starts to look at how to attract a wider audience of sellers, in order to attract a wider customer base.

  1. Over Saturation

Over 30% of field respondents  in the Direct Sales Trends Report 2022 said that Finding People – be it customers or team members – was their greatest challenge. Many even stated that their area was over-saturated, or that their demographic wasn’t interested in their products.

  1. Upcoming Retirement Plans

Some legacy direct sales companies are prospering with most sellers having been with the company for over 20 years, but the average age of their consultant is 60+ now and their sign-up for new sellers is falling rapidly. They’ve realized that if they don’t change their communication strategy and diversify their field, their company will go out of business as sellers look to retire. Attracting a different, new demographic is critical for business survival.

  1. Rise of Social Selling

Personality, stories, shared life experiences, human interaction, this is of far greater value than cold prospecting. Social media has enabled this at scale so now consultants can connect with people from around the world. But, customers identify with people that share similar struggles and pain points. Celebrating and supporting field diversity, means your company can create connections with the widest customer base possible which is key for growing a global business.

Take control of your business and smash the glass ceiling with Penny

The virtual assistant built for social selling success. 🚀

Meet Penny

Product Mockup

What are the true pillars of a new-generation direct sales company and how to develop a diversity strategy for each?

Product

The traditional way of marketing often starts by creating a detailed description of your ideal customer, often based on the customer pool you have already. But, in doing so, marketing and advertising professionals have inadvertently been so focused on their target customer that they’ve neglected those who don’t fall into this specific customer persona.

A more inclusive marketing strategy is to look at the personality of the customer and define what problems the product is solving for them. This shift in perspective massively changes the way a product is marketed and thus the customers attracted.

QUESTIONS TO ASK

View this post on Instagram

A post shared by Penny Direct Sales Assistant (@getpennyapp)

Engaged Salesforce

The churn rate of distributors in the direct sales industry is a well-known problem. When companies start implementing their strategies to attract a more diverse customer and then distributor base, it’s important that internal processes are in place to support and nurture minority distributors. When new sellers join your company you want to guarantee that everyone feels welcome, supported and has a clear pathway to success.

QUESTIONS TO ASK

Series B Penny Video Announcement

Penny AI is delighted to announce a $27 Million Series B Financing Round. Watch the Founder's story to see what this means for Penny AI.

Corporate People Focus

While corporate is building out a strategy that focuses on people, it is worth looking inward and assessing how diverse your company is from a corporate perspective. Much like with many industries, direct sales suffers from a lack of diversity at the top end of corporate.

With diversity, comes new perspectives. If you’re sitting in a room with people who all come from similar backgrounds with similar lived experiences, your company is missing out on insights and perspectives from all different vantage points.

QUESTIONS TO ASK

Some stats to consider. For more numbers check out the 37 Numbers you Need to Know for Direct Sales

DS Report Numbers You Need To Know
Social Selling Purple
0
of Gen Z are of ethnic and racial minorities.
Pew Research Center
Performance Insights Icon
+230%
cash flow per employee in diverse companies
Bersin by Deloitte
Team Performance Icon
+70%
Likelihood of diverse companies to capture new markets.
HBR

Diversity is key for long-term Direct Sales Success. According to the Direct Sales Trends Report 2022, 61% of corporate responders think their company has made an effort to diversify its consultant base. But 26% said no, but it’s in motion. Take the time now to review what diversity strategies you have in place across the three pillars - product, customer and corporate - to identify where progress is being made and where work still needs to be done. 



Social Sharing

< back to blog