Customer Loyalty and Hostess Rewards Programs

March 20, 2017 By admin 1 Comment

Free and discounted products are the rewards that direct selling companies offer to customers and hostesses.

While the rewards provided to customers and hostesses are similar, the behaviors we want to see from each are different. In this article, I will explain these differences so you will see why a one-size-fits-both approach won’t work.

Customer Behaviors

In our special report 20 Secrets of Successful Direct Selling Companies, the 13th secret is:

Make your M.O. (modus operandi) multiple orders.

We want customers to buy again and again. We can encourage and reward this behavior by providing customers with free products or product credit for their consistency in placing orders or for their total purchases over time.

We may also want customers to introduce the company’s products to their friends. We can offer those who refer customers free products or free product credit when their personally referred customers make purchases.

Customer rewards are not dependent on a party’s sales.

The common thread throughout all customer programs is to reward customers for activities performed over a long period of time. Think marathon.

Hostess Behaviors

Hostesses invite their friends to a party, whether held online or in-person, or both. They earn free product credit and discounted product purchase opportunities, the amounts of which are based upon the purchases made by those who were invited to the party.

Hostess Rewards are based fully on the sales generated at a single party.

The common thread of all hostess programs is to reward hostesses based on the sales made over a short period of time. Think sprint.

Mustard and Ice Cream

Mustard and ice cream are each tasty, but together they would make a nasty treat.

Don’t make the mistake of mixing desired hostess behaviors into a customer loyalty program.

Customer loyalty should not be tied to the sales made to other customers at a party, whether real or cobbled together to meet a party minimum. Likewise, hostess programs should not provide rewards for sales made over a long period of time.

Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving network marketing, party plan and referral marketing companies across the globe.

Jay Leisner and Victoria Dohr authored the top-rated book for new and young network marketing, referral marketing, and party plan companies, "Start Here: The Guide to Building and Growing Your Direct Selling Company".

Available in English and Spanish. This startup guide contains 250 pages of wisdom that will guide you through the right steps to start and continue on your journey to build a successful direct selling company.

You will save thousands of dollars and hundreds of hours of your time using the information you will read in our book.

In 1986, Jay began his career in direct selling by working for a major direct selling software provider. First as a software developer and later as a project leader and a business analyst, Jay worked closely with new and established network marketing and party direct selling companies to provide them with software solutions to meet their unique requirements.

Jay contributed in many ways to the success of large implementation projects for many companies. Jay also worked with dozens of smaller companies to assist each of them in various capacities to provide them with the systems they needed to help their businesses to grow faster.

Along the way while working with them, he learned the secrets of successful direct selling companies and the challenges faced by them. In true entrepreneurial spirit, Jay’s decision in 1999 to start Sylvina Consulting as a direct selling consulting company was driven by what he saw was a need for answers, advice, and solutions.

In 2004, 2006, 2009, 2014, and 2018, Jay gave presentations on compensation plans, recognition, and field leadership development at conferences held by the US Direct Selling Association.

He traveled to South Africa in 2015, 2016, and 2017 to conduct workshops on compensation plan design and recognition programs for member companies of the South African Direct Selling Association.

In 2017, Jay spoke at the Canadian Direct Sellers Association Meeting on the importance of recognition.

More than just a compensation plan expert, Jay is exceptionally skilled at advising new and established companies on business strategies. Before offering advice or solutions, he asks important questions to understand each client’s specific concerns and goals.

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