Pivoting During Crisis: How Direct Selling Companies Survived The Pandemic

Image sourced from Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

The COVID-19 pandemic turned many industries on their axis, forcing companies to reevaluate their business models as they came to terms with the “new normal”. As the pandemic stretched into its second year, many consumer-based businesses have taken serious financial hits, resulting in layoffs, downsizing, and even closing up shop for good. As the great resignation rages on in tandem with companies downsizing and closing, many are seeking out new opportunities with an eye on which industries have thrived, which offer work-from-home options, and which will welcome in those from completely different industries and backgrounds. 

One business model that thrived during the pandemic was direct-to-consumer sales. Direct-to-consumer and multilevel marketing businesses are characterized by a business model where independent contractors sell a company’s products directly to their consumers. Multilevel marketing is distinguished by the fact that those who function as salespeople for the brand make an additional income by recruiting others to work and become sellers for the company. These types of companies saw a surge in the age of social media and a significant increase during the pandemic. Here’s why.

How Relational Marketing Impacts Your Bottom Line 

One differentiating factor of direct-to-consumer sellers is the prioritization of cultivating direct relationships with customers. Other companies can rely on things like cookies to find out their customers’ habits and preferences, but this isn’t the case here. Direct to consumer cuts out the middle man and, by doing so, aids in increasing customer loyalty.

Companies that prioritize customer loyalty and relationships are more likely to see success than those that don’t. Building direct relationships with consumers helps the consumer feel valued, gives them a direct line to their seller, and allows the company itself deeper access to customers’ opinions, wants, and needs. For any B2C company, this is of utmost importance.

How Social Media Became a Main Revenue Driver 

When storefronts closed in March of 2020, businesses scrambled to bolster their websites and social media following. Many companies relied heavily on the in-person shopping experience, even amid such a transformational digital age. This is where direct-to-consumer companies had an advantage from the start.

One skincare and wellness direct-to-consumer company, Neora, used this pivotal time to connect more with existing customers via social media. While they had previously relied on in-person events to sell their product (to an extent), the pandemic forced them to invest more in their online presence and even make new offerings tailor-made to a “stay at home” lifestyle. Anyone who sells products understands a sense of personal branding and the importance of customer loyalty, but oftentimes the next evolution of your business lies in pivoting products to meet customers’ needs and lifestyles. Then, social media comes in and acts as a distribution tool that allows you to reach people on a global scale. 

We all know that social media success is often found through capitalizing on trends. Neora capitalized on the trends during the pandemic to create an offering that gave their customers at-home facial kits to help destress during trying times. This offering mirrored the trending language around self-care and proved to be a huge success with their customer base. Now more than ever, building customer loyalty through social media following makes a difference in your company’s bottom line.

Shift Your Product Offering

If you have created a following and developed a sense of customer loyalty but still aren’t making enough sales, it might be time to reconsider your product offering. That may look like creating or rebranding specific products—like at-home facial sets for at-home customers during the pandemic, or it may mean zeroing in on a specific niche in your audience segment and creating an offering just for them. You don’t necessarily have to transform or rebrand your entire company to see a difference. As Neora found, sometimes repackaging an existing offering in a more appealing and timely way makes all the difference. A little bit of critical thinking around what you’re offering and how it matches your customer’s immediate needs goes a long way in business.

Overall, there are many avenues to success, but a few facts remain clear: if you aren’t serving your customers’ needs first and foremost, you aren’t going to make a difference in your industry as your whole or in your business. Revenue-driven leaders must recognize the importance of investing in their customer’s happiness and well-being and meeting them where they are to drive their company into the future.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.