Amway Case Study: The Most Successful Multi-level Marketing Company

Amway is considered one of the top direct selling businesses worldwide. It was established in 1959 by Richard DeVos and Jay Van Andel in Michigan. Amway manufactures and sells products to promote the health and well-being of the people. Amway has been providing career opportunities services as well. In addition, this company has been collaborating with the other business houses to sell their products.

Amway US

Amway is a billion-dollar company and has managed to make this massive amount while keeping its conversion exponentially high compared to the other companies. During the 1990s, the whole culture of the salespeople became very popular in the United States of America, where the salespeople used to knock at the door of the customers to sell their products. In India, the concept of salespeople was also emerging in the early 2000s, when the salespeople came and knocked at the doors to sell Oxford Dictionaries and much more. These salesmen had a meager conversion rate, but Amway, at that time, was making a million dollars, and the conversion rate was also exponentially high as compared to the other salespeople. Therefore, Amway adopted a unique strategy to get high exponential sales conversion, which is not related to network marketing but was associated with the idea of consistency to convince their customers.

What Is The Unique Feature That Upgraded Amway?

The secret of Amway’s success lies in how they introduce their product to the customer. The main difference lies here between an average salesperson and an Amway salesperson. Usually, a typical salesperson will knock at the door and describe his products by giving long descriptions, which irritates the customers. He comes in the middle of the day, and the housewife leaves all her chores to listen to his report, which sounds not so good. Regardless of how good the products are, the salesperson mainly disturbed the customer’s schedule, which is not a good impression and due to which, the customers don’t show any interest in their products. It was why these salespeople were not able to sell their products.

 On the other hand, Amway tried to find a way for the salesman to quickly sell their products without disturbing the customers’ schedule. Therefore, it came with a unique strategy. The Amway salesperson came, knocked at the door, and gave them free merchandise of their products instead of boring the customer with lengthy descriptions of their products. Furthermore, they asked the customers to use these small products and give them their views next week, which was convenient for both the customers and the salesperson. This new approach by Amway is the main thing that has helped the company to earn billions of dollars. 

The home markers could not resist the free merchandise, and the salesperson did not even take much of their time, which positively impacted customers’ minds. The homemakers use all these products, and then, when the salesperson comes next week, all the reviews are taken. The customers themselves tell the salesperson which product they like, and there is no need for the salesperson to even pitch for his products. The customers’ products are given to them, with special discounts that make the whole process a bit more smooth. 

Tyson Zahner

The Amway salesperson did nothing much; he just handed over a free sample to the customer and did a favor, whereas the customers tried the products, invested their time and efforts, and liked the products. However, if the customer refuses in the first place not to take effect, the salesperson will not spend his person on persuading that person. In this way, Amway was able to get some high exponential sales in a world of competition. Just a simple approach toward the customers and the business reached heights. Moreover, the transaction between the customer and the Amway salesperson became comfortable. He could quickly come up with new products, and the customer would happily take those merchandise instead of getting angry or irritated, as was the case with other salespersons. 

What Are The Key Lessons That We Must Learn After Studying The Amway Case?

The Amway salesperson did nothing complex but followed simple three things mentioned below: 

  1. Firstly, he did not repeat the mistakes of another salesperson. He did not disturb anybody’s schedule, instead gave free samples to the customer.
  2. Secondly, he did not pitch to the customer about the products, but the customer listed the things that he liked.  
  3. Finally, he got the customer’s free merchandise, and the customer also invested his time and efforts, which created a strong connection between the two.

This simple approach laid a solid foundation for Amway. 

Conclusion

Amway’s unique approach toward its customers helped the company gain a considerable amount of money while flourishing itself in the market. Amway tried to understand the customers and found a unique way of communication that was feasible for both sides. Rather than repeating other people’s mistakes, it worked on that system’s weakness, and the result is in front of us.

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