Why Corporate Social Responsibility Matters for your Direct Sales Business

Corporate Social Responsibility and Why it Matters for Direct Sales | jenfongspeaks.comThis week, on Giving Tuesday, I was invited to speak at the Central Jersey Think Tank about a topic very near and dear to my heart, Corporate Social Responsibility (CSR) for small business. As someone who considers herself a social entrepreneur, who has led a company dedicated to making a difference in society, and who helps clients design giving programs, I was excited to share my thoughts.

What is Corporate Social Responsibility? Corporate social responsibility, also called sustainability, is a company’s voluntary actions to manage its environmental and social impact and increase its positive contribution to society. And it’s not just for corporations. As consumers increasingly seek to do business with businesses doing good, it makes a lot of sense for EVERY business to adopt CSR practices and give back to society.

Let’s look at the numbers.

  • A 2015 Study by Harvard University found that companies with strong ratings in CSR (sustainability) significantly outperformed firms with poor ratings.
  • A 2016 study by Nielsen revealed that 66% of global online consumers across 60 countries say they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact.
  • 68 percent of Lightspeed GMI survey respondents over 35 sought employment at companies publicly recognized for their ethics, and that number rises to 82 percent when it comes to Millennials.
  • 70% of millennials say they are willing to work for less pay with an organization who best matches their ethical and social beliefs.
  • According to the Net Impact’s What Workers Want report, 45% of employees would take a 15% pay cut for a job that makes a social or environmental impact
  • In a Society for Human Resources Management study, companies with strong CSR programs had:
    • 55% better morale
    • 43% more efficient businesses processes
    • 43% stronger public image
    • 38% better employee loyalty
  • As reported in Forbes, investors feel that there is a shortage of impact-worthy social impact investments. Meaning that if your business is healthy and can prove social impact, there is a large pool of capital waiting to be deployed.

So what does this mean for direct sellers?

For companies:

Direct sales companies can attract and retain the best corporate talent by giving employees an opportunity to be part of the company’s CSR outreach. Companies are also more likely to attract salespeople, particularly in the all-important millennial generation, but offering a meaningful, ongoing CSR program that is in line with the company’s mission and values. And those salespeople are more likely to find customers that are happy to shop with them, and even pay a premium for products, when the company has a dedicated commitment to its impact on society and the environment.

For consultants:

You have an opportunity at a grassroots level to demonstrate the impact your business and your company can have on society and the environment. Support fundraisers related to your company and personal business mission. Use your business platform to advocate for causes. Keep the environment in mind when shipping and displaying merchandise. And highlight your company’s CSR efforts as well. Not only will you be making a difference in the world, you will also attract more customers and consultants who want to support the causes they believe in with their time and dollars.

Corporate social responsibility is not just about being a do-gooder (although it makes a positive impact.) It’s also exceptionally good for business, and when strategically designed, a CSR program can increase satisfaction and loyalty to your company.

How is your company integrating corporate social responsibility into its business practices? If you are a consultant, what do you do at a small business level to promote sustainability? Would love to read your thoughts in the comments below!

4 Things Every Direct Sales Company Needs Today

Jen Fong Speaking in front of Vision signThe direct sales landscape has changed dramatically in the last few years. No longer can any company consider itself a “pure” party plan or network marketing company. Rather, smart direct selling companies are identifying the components of each that work for today’s consultant and customer, creating an entirely new “social selling” experience that takes into account the ways that people like to buy and sell today.

Based on the many years of experience I’ve had working with direct selling companies as both a corporate executive and a marketing and business consultant, I believe that there are several necessary components that every company needs to include today:

  1. Multiple ways to sell: No company is a one-trick pony anymore. You are not a pure in-person party plan or network marketing/MLM company anymore (even if you think you are.) Consultants and distributors are going to sell the way that people want to buy. And so companies of all kinds are beginning to integrate in-home experiences, virtual experiences, and one-on-one experiences to meet people where they are. We’ve had challenges with technology keeping up with the needs of our industry, but we’re getting there. Now it’s up to companies to make sure you are providing training on each of these sales methods, integrating best practices into your materials so consultants and customers have a consistent experience when interacting with your brand.
  2. Mobile accessibility: I’ve said it before: if your company doesn’t have a mobile strategy, you’re already behind. When we look at the analytics of our clients’ sites, at least 75% of their traffic is mobile. Consider what this means for the prospect. For the consultant. For the customer. Most people do more on the web from their phones than they do from a laptop. Your backoffice, training, shopping, website, etc. all needs to be mobile responsive. Mobile apps can help you stay top of mind for your salesforce and customers. If your website is still coming up in miniature when you look at it on your phone, you have a problem. It’s time to fix that NOW.
  3. Customer club: No matter how a customer purchases from you the first time, the principle of convenience will dictate future business. A customer club helps. By providing customers with a chance to receive special deals and discounts, only available to club members, via email each month, you significantly increase your chances of reorders. All customers need to do is click over to your (mobile friendly) site, and place the order. While they are there, they can be offered other products (You may also like…) All orders are credited to the consultant, however you don’t need the consultant to perform every follow-up. It’s a win for everyone.
  4. Autoship: If your company offers any kind of consumable product*, autoship is a must. We used to consider this an MLM-only offering. But the fact remains that consumables get used up. Identify how long it takes to use up your product, and offer a discount for having a reorder billed and shipped before the customer runs out, so that they don’t have to think about it (convenience!) All backend technology providers, even if they have traditionally catered only to party plan companies, must offer an autoship option today. It’s an essential part of doing business.

*BTW, even if your company doesn’t offer a consumable, autoship is still a possibility. Think a “look of the month.” A sample pack of products each month. The prevalence of monthly box companies out there should give you a good indication that even if you don’t offer a consumable, there are still ways to make an autoship work, and produce ongoing revenue, for your company.

I’ve said it before and I will continue to say it, direct sales has changed fundamentally. While the industry has traditionally been slow to change, it can no longer do so if we want to continue to provide economic opportunity for millions, for generations to come. Rather, we must always keep an eye forward in order to create companies that respond to the changing needs of customers and consultants.

What changes have you seen in the industry? What do you think companies need to do in order to remain relevant? Would love to read your thoughts in the comments below!


Jennifer Fong, Founder and CEO, Jen Fong Media, LLC http://jenfongmedia.comAbout the Author: Jennifer Fong is the Founder and CEO of Jen Fong Media, a full service digital marketing firm that helps direct selling companies, businesses, service providers and non-profits reach the people online who can help their organizations grow. We believe in marketing with integrity, building the relationships that matter and approaching marketing from a standpoint of service. For information on how Jen Fong Media can help your organization, please visit us online athttp://jenfongmedia.com.

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