Ladder of customer loyalty in an MLM business

Getting loyal consumers is impossible without a well thought out strategy of moving from prospecting to signing new members. Your success will depend on implementing this.

Getting your consumers to try your product is one thing, but ensuring that they stop using your competition’s products after using yours is a different ball game altogether. You will need not only a strong product, but also a well thought out strategy to ensure that there is a network to support you on your path towards success.

Give below are some ways in which you can ensure better customer loyalty towards your products:

Clear product/ brand definition

In order to have a loyal customer base, you must first define the product/ brand clearly. By specifying who this product is made for, yoi will be able to attract the right consumers; people who are genuinely interested in the product for its qualities and benefits.

The first set of people who use and stick to the product are product loyalists. They will always be loyal to the company, no matter what.

Having a well defined product lets us attract and build a solid set of consumers who will move away from the brand only if they encounter a big problem with the product or business at any point. The company is actually built around these people and no business will make any changes that may dissuade these loyal consumers. This is applicable for any company and every business.

Suspects

Suspects are consumers who have so far not interacted with you, the product or the business, but may be interested in using your products. There has been no communication from either side and anyone who fits the description of the company’s target consumer is a suspect.

A suspect is someone who the company’s sponsors/ distributors are looking for. He can be located at trade fairs, networking events, through the online medium. It could also be someone who contacts you after seeing your advertisements. A suspect may or may not be interested, but it is your job as a distributor to get them interested and convert them into a prospect.

Prospects

A prospect is a suspect who has been successfully convinced to spend his time with you to understand more about the products of your MLM business. In other words, he is a lead to whom you are trying to sell products. You are now communicating with him on a regular basis in order to convince him to use the products. At this stage, it is your skills as a salesman which must to come to the fore.

It is quite possible that he may not be the right person for you or may not be interested in buying at the moment. However, you should be able to close the meeting on a positive note by getting the contacts of some other leads who would be a perfect fit for the MLM business according to the person you just met. By doing so, you are keeping a door open for positive future interactions.

Customers

Customers are prospects who have been successfully converted by you. They are now using your MLM’s products. It is important to note that customers only use your products and have not signed on to be distributors of your MLM business. They are still at a very nascent stage and are yet to become a loyal user of your product.

At this point it is up to your product’s qualities and features to impress them and hook them to your products. It is also important to keep them in the loop for all important things related to your products as this can influence them to increase their product trials and consumption.

It is always better to have a few customers who buy regularly rather than a lot of customers who buy sometimes. This is because your costs of marketing, sales, customer acquisition and other overheads will be lower or negligible with existing customers, which means higher profits.

Clients

Clients are customers who are now loyal customers of your brand and buy your products regularly. They have stopped using your competitor’s products completely. This is a victory for you and your production team, as only with successful sales, marketing and production can this be achieved.

Clients have not signed on to be sponsors and are just loyal customers of your products. Very little time, money and effort has to be invested to keep them happy. The major focus here has to be on maintaining product quality, a smooth distribution system and an efficient after sales service. Only a disruptive product can wean away these customers from your MLM business.

Advocates

Advocates are extremely satisfied loyal customers who have been clients of your products for a long time and now recommend or suggest your products to other consumers who consume the products of your competitor.

They do not have any ownership of the business, i.e., they are not sponsors/ distributors. They do not get any financial incentive or commission for recommending our products to other consumers. They will mostly be forwarding contacts of leads who will be interested in being your customers.

Members

Members are sponsors or distributors who have signed on to be a partner of your MLM business. They get compensated for every product they sell or as per the incentive plan of your company. Their main goal is to sell more products and to sign on more members in their network to grow a company’s network. Their incentive is based on their sales and the number of members they sign on. Their motivation is to be financially independent by earning royalties from the MLM business.

They may or may not be loyal users of your products. They are expert salesmen who want to be financially independent and hence their main focus is about getting the product and its message out to ensure that it is sold.

Conclusion

Given the intense competition in the market and high customer acquisition costs today, it is imperative for businesses to be able to hold on to existing customers. Remember, a loyal customer will not just mean repeat business, but if tapped properly, can also add more customers to your business in the long run.

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