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Hearts & Smarts Workshop

I’m at the DSA Annual Meeting in Miami Beach, the attendance is strongest I’ve seen in a few years.  It’s a good sign that confidence is rising and people are getting back to work, smarter and leaner than ever before.

My workshop on “Hearts & Smarts” was well attended, roughly 60 participants.  The “traditionals” and “baby-boomers” sat audience left, and Y-Gen and X-Gen on the right (best I could tell).  We jumped in with the basics of the distributor service department mission:

  1. Create Happy Distributors
  2. Improve the Company
  3. Develop Service Professionals

Building on “Business in HD” (Happy Distributors as well as High Definition), we explored that High Def is the important definition around staff selection and development (selecting people who possess the soft skills–”heart”– and the hard skills–”smarts”) along with implementing distributor service best practices.  Participants who register at the ServiceQuest website will receive a copy of the book Hearts & Smarts when it is released.

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Time Limits on Returns

Standard practice is to establish a time limit for returns. In addition, prudence-as well as the pertinent MLM and Party Plan regulations-suggests that you have a sound basis for not accepting product which has been used or damaged (other than by shipping considerations), or is outdated or expired, and is otherwise not resalable.

The law requires that you purchase back product from a canceling distributor if the product is in resalable condition, and if the product was purchased within 90 days of the requested refund. The refund can be adjusted for as much as 10% for handling and re-stocking, less any commissions or rebates paid to the distributor returning the products. This is a standard provision that will appear in your distributor agreement and company policies and procedures. (If not, quickly get in touch with an MLM attorney specializing in our industry.)

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Product Returning Options

Product returns are a fact of business life in direct selling, multilevel (MLM) and party plan companies. Returning merchandise via the USPS is an annoyance to the customer. First, if the order has been opened, the product has to be carefully re-wrapped; next, it has to be taken to the Post Office, where long delays may be encountered; and finally, the customer has to pay the return postage and insurance. This article explores ways to reduce this burden and irritation.

Naturally, the goal is a happy customer, ecstatic MLM distributors and thrilled Party Plan consultants. If you pause to think about it, the better job you do of keeping your promises, the better chance you have that expectations will be met because promises are kept. This begins with product that fulfills the promise, compensation plans that do what they say, and fulfillment on time every time. Visualize the customer receiving his or her order-or commission check-opening the box-or the envelope-and experiencing excitement or disappointment. Every element leading up to that experience must be in your focus as you design the system for fulfilling your promise.

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MLM Customer Service Guidelines

The ServiceQuest® system was established to fulfill a substantial need for companies lacking sound MLM and Party Plan customer service and internal operations systems in their quest for delivering on their promises.

In working with and visiting scores of customer service operations all across the nation, the founders of ServiceQuest are often struck by a surprising situation. The companies have not documented any customer service policies, or if such policies have been formulated, those employees who must implement them: (a) are not aware of the rules applying to their jobs; (b) are functioning under some outdated policies not in effect for many months or even years, or (c) don’t know how or where to find the applicable policies. In addition, when employees don’t know the ground rules, one should not hold them at fault. Management is deficient.

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Rebuilding Goodwill & Perception Kickers

Acknowledging that we make mistakes, being proactive about building goodwill will distinguish your company from the competition. This article offers tested and proven recommendations for building goodwill throughout the MLM and Party Plan organizations (and hence, a sound reputation) as well as re-building goodwill when you have goofed.

Key Concepts

  • One effective, caring goodwill gesture can compensate for as many as ten poor-service experiences
  • Empower your service staff with the tools for rebuilding goodwill
    1. Teach them to spot opportunities to rebuild goodwill
    2. Establish “goodwill” accounts for them to spend on rebuilding goodwill
      1. Discretionary dollars (with guidelines and accountability)
      2. Discretionary product give-away (with guidelines and accountability
    3. Regularly report goodwill accounts
      1. Track goodwill dollars as a percentage of sales
      2. Track and report by rep (in order to give rep the feedback about how they are doing versus guidelines and departmental standards)
  • Make sure that customer service employees are selected for their “people” skills (good communicators, empathetic, reliable to follow through, intelligent thinkers and analysts, etc.)
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