Leveraging AI and machine learning to enhance efficiency and growth
By: Crystal Holtzendorff
Flexibility and adaptability are the cornerstones of technology best practices, not just driving engagement and efficiency but, ultimately, fueling significant sales growth.
Throughout its history, the direct sales industry has gone through a series of changes akin to a roller coaster with many ups and downs. Now, the introduction of artificial intelligence (AI) and automation is throwing the industry through yet another loop.
Advanced technologies are changing the strategy and methodology of direct sales—and it is helping fuel sales growth. In 2022, the industry grew 8%, accounting for $40 billion in retail sales, and for the next three years, the industry is expected to grow at a compound growth rate of nearly 6%. Technology is playing a significant role in driving this activity.
AI isn’t a new concept, but integrating the technology into existing processes certainly is. Large powerhouse direct sellers are finding challenges pivoting their processes to incorporate AI tools, while smaller companies are struggling to capitalize on technology efforts at scale.
Whichever bucket you fall in, there are essential tools necessary to adopt internally and to attract and support affiliates. To launch the most successful technology program, companies should also establish best practices and work with the right partners. Here is a playbook on how to implement an effective technology strategy for direct sellers.
Best Practices for AI Adoption
Before committing to specific AI tools, it is equally as important to first establish a strategy and set of best practices. Companies of all sizes and market share are investing in AI, and it is important that companies remain flexible and open to innovation.
Early in the digitization of the industry, it was difficult for some large industry mainstays to transition to email, and then years later, they had to make the same shift to incorporate social media. Those transitions proved challenging for some, and there is a lesson in that. There is routinely going to be something new, and companies need to stay nimble enough to adapt as the industry changes. Flexibility and adaptability are the cornerstones of technology best practices, not just driving engagement and efficiency but, ultimately, fueling significant sales growth.
AI technologies not only open a door for direct sales platforms to better engage with customers and improve customer service but also help to create back-of-house efficiencies that improve productivity and streamline operations, ultimately supporting field leaders and their downlines.
As such, best practices for any technology program include the adoption of both back-of-house and affiliate tools to support the complete pipeline of a sales transaction, from sourcing the customer to closing the sale. In addition, companies should outline actionable goals for adoption and include employee and affiliate training. Ultimately, technology adoption can’t happen for the sake of adopting progressive tools; it should always solve a specific problem and pain point to better support the business.
Affiliate Technology Solutions
- Chat GPT and similar AI-powered chatbots are able to write a variety of content for affiliates, including blog posts and sales scripts. With some experience, affiliates will be able to train the bot to speak in their own voice or the brand’s voice to create personalized and targeted messages that resonate with prospective customers, but with very little effort from the affiliate. The technology has a big impact, allowing affiliates to reach more customers in a smaller time frame without forgoing personalization. In addition, Chat GPT can improve SEO standards and help to connect affiliates with prospective customers.
- Automated post software is an essential tool for affiliates in a modernized direct sales program. Affiliates might use a program like Chat GPT to help generate content and improve SEO, but automated posting helps level up by releasing that content at the peak time. This ensures that the post gets the most eyes and traffic, even if it is at a time when the affiliate isn’t working or is unable to be online. Automated post software can also make recommendations on the optimal timing during any given day or even post automatically based on real-time site traffic data, which shifts daily.
- Predictive analytics help affiliates make strategic and targeted decisions that drive more sales activity. Using historical data and machine learning, predictive analytics tools can model future behaviors and predict outcomes. In direct sales, the tool can target users that would best align—or shop with—a brand and it can even pinpoint the products that will best perform with a specific customer. This creates valuable efficiencies and improves transaction success. Rather than an affiliate showing an entire product line to a customer that might only purchase a specific product, the affiliate can show only the products that a customer is most willing to buy, creating a more efficient process and a more positive experience for both the customer and the affiliate.
Corporate Technology Strategies
- Compliance software and digital risk management software are possibly the most important tools for a direct sales company when adopting AI tools. Affiliates are representing the brand when they are selling in public and social spaces, but the corporate office often has limited control to review posts in advance, and the manual monitoring of posts is time-consuming and daunting. By using compliance software, companies can automate the compliance process to ensure that all posts from an affiliate are aligned with the branding and voice. Compliance software can be pre-programmed with the brand’s standards and alert the corporate office any time a post falls outside of those guidelines.
- Scaled automated analysis can deliver high-level data and deep insights into the performance of posts and sales activity. While affiliates can use data tools like predictive analytics to make more strategic and targeted decisions, corporate offices can use data tools and machine learning to glean important insights into those decisions and track success rates at scale across affiliates, geographic markets, and demographic markets. Corporate can see at a high level what is working and where they are getting the best return on investment. With this technology, direct sales companies can develop more thoughtful and successful strategies and pivot to higher-producing markets as needed.
- Automated, instant payments are essential for companies to attract and retain the best affiliates that will drive sales activity and remain committed to the brand. It is a competitive labor market, and every company is fighting for talent. In fact, since the COVID-19 pandemic, gig work has increased 170%, nearly tripling in size. Many direct sales programs still pay distributors once per month with a check or a standard ACH payment. But, independent workers are more frequently prioritizing work platforms that provide instant AI-powered payments following a shift that intelligently deliver a payment hours after work is completed. In PayQuicker’s research, 83% of survey respondents said that speed of payment was important in choosing a gig. Direct sales platforms that provide instant payments create a better experience for affiliates, and they will gain a competitive advantage in the labor market.
The Benefits of Outsourcing to Third-Party Vendors
When adopting new technologies, many direct sales companies believe that they should develop proprietary in-house solutions, but that is generally the wrong approach. An in-house program is expensive and requires a large experienced staff to maintain. It is also difficult to upgrade and maintain as technology advances. Rather, companies should partner with a full-service third-party technology provider that can provide scaled solutions and experienced support staff from Day One. This is the most cost-effective and efficient way to adopt a complete technology solution instantly.
Outsourcing to third-party technology companies also helps direct sales companies avoid the pitfalls of tech debt, or outdated technologies that require a significant investment to either maintain or upgrade. In fact, some chief technology officers have reported that 40% of their IT balance sheet is dedicated to tech debt. Outsourcing to a third-party provider that uses cloud-based tools avoids this problem in the future, creating a technology program that can grow and adapt with the company.
And, of course, that is really the cornerstone of technology adoption: integrating tools and programs that support business growth and objectives. It should provide solutions, not create problems.
By creating a system of best practices, adopting the right tools for both the business and its affiliates, and forming the right technology partnerships, companies are able to gain the biggest benefits from AI today and into the future.
Crystal Holtzendorff is Vice President of Global Sales at PayQuicker.
