1. Door to Door:
Feeling at
Home with
Brands

2. Door to Door:
Feeling at Home
with Brands
Contents
3
Introduction
4
Trust
9
Passion
14
Community
18
Summary

3. Introduction
Although many brands now sell direct through the rise of e-commerce brand
sites and even s-commerce (social, e.g. selling through facebook), for the
purposes of this case study we pay closer attention to the more classic direct
selling style. This piece examines companies that still sell through
representatives in person, in order to find key learnings that might be
applicable to any business faced with today’s challenges of advertising
bombardment, reduced human contact through technology and intense
competition for spending.
 The idea of door-to-door selling inspires mixed reactions; some people
think of intrusive and annoying sales people, whereas others see an
opportunity to get closer to brands they love, with a better service
 Either way, direct selling is a growing channel opening up opportunities
for manufacturers to reach more consumers in a closer way, an
opportunity many companies are seizing
 Direct sales reached $132 billion worldwide, growing 12.4% last year
 The USA is the #1 direct selling county, at $29.6 billion and with a sales
force of more than 15 million independent contractors, Japan is #2, Brazil
#3
 Although in some industries and geographies, direct selling has developed
a negative reputation, there are valuable lessons to be learned from those
companies that have carved their success through this channel
From the key benefits and success factors of door-to-door, we
can learn how brands can build and profit from:
– Trust
– Passion
– Community
http://www.directselling411.com/for-sellers/myths-facts/ www.dsa.org
http://www.businessforhome.org/2012/02/direct-selling-2011-growth-9-2-for-public-companies-amway/
©XPotential 2012
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4. Trust
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In order for door-to-door selling to be successful,
shoppers must feel trust in the brand and the salesperson; this form of selling hinges on personal
relationship more than conventional retail does,
heightening the importance of service
At the same time, the direct selling method is an
opportunity to earn closeness to the consumer and
to build trust in a meaningful and personal way
©XPotential 2012
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5. Trust: Delivering Promises
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For many direct selling brands, the first point of
contact is at the consumer’s door. Right from
this point, the consumer must be able to
feel they can trust the seller, particularly if
they invite them into their home
There must be a sense that the representative
is well-meaning and honest. Across companies
that sell direct there is a common goal of
getting close to people and helping them
To achieve this goal, employees must be
equipped with the power to do what is best for
the customer, to build trust – it comes down to
the actions of individuals within the company
You can invest heavily in marketing
communications to get your message in front of
customers, but if your employees aren't
equipped to deliver what you've promised, your
marketing investment could be wasted
http://www.guardian.co.uk/lifeandstyle/2011/aug/18/125-years-avon-calling
http://lmanternach.wrytestuff.com/swa464611.htm http://www.brandrepublic.com/news/913125/Door-todoor-sales-company-Kleeneze-opens-promotions-channel/
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©XPotential 2012
With the dwindling faith and interest in
advertising, given the bombardment we are
faced with today, selling person-to-person
represents a much more engaging way to
touch base with consumers
Door step selling can be negatively viewed, for
example around energy sellers and rogue
traders in the UK - the area has received bad
press. To combat this, it is important for
companies that sell this way to be built
around sound ethics and fairness. This
problem also ties in with the fact that many
early stage sellers begin by selling to friends
and family, which some people can find
uncomfortable if not executed sensitively
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6. Trust: Delivering Promises
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Once trust has been established, there is an
opportunity to provide real benefits to
consumers, e.g. older people who may not be
as well-informed if they do not use internet, or
have limited mobility. This group may also
value the human contact
Door to door selling company, Kleeneze
establish channels of trusted sellers, who can
then introduce customers to affiliated brands /
products
Benefits of trust include long-term loyalty
and positive word-of-mouth
http://www.guardian.co.uk/lifeandstyle/2011/aug/18/125-years-avon-calling
http://lmanternach.wrytestuff.com/swa464611.htm http://www.brandrepublic.com/news/913125/Door-todoor-sales-company-Kleeneze-opens-promotions-channel/
©XPotential 2012
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7. Trust: True Identity
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Selling direct to consumers cuts out the “middle man” – the retailer. This
brings a higher level of control over where and how products are
presented to shoppers (to the extent that you can manage agents)
Communication within a big retailer can be lost, surrounded by POS
marketing for hundreds of other brands, losing effectiveness
One big advantage of the direct selling model is that you have control over
your business. You control how many agents you sell through, where you
will sell, and which geographic locations you will expand into.
When you sell via retailers, you are dependent on the retailers’
expansion plans. These plans may or may not be in line with your own
business needs
Although direct selling provides more control, which allows for building trust
with customers based on giving them a clear understanding of your brand
identity, values etc. this is only made possible by strong training,
guidelines and internal marketing to representatives
http://www.kentgrayson.com/Grayson%20Archive/directsellingchp.pdf
http://mansmith.net/index.php?option=com_content&view=article&id=220:direct-selling-as-a-sustainablecompetitive-advantage&catid=43:direct-sales-a-multilevel-marketing&Itemid=44
©XPotential 2012
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8. J.Hilburn: Building Trust to Win
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J.Hilburn is a luxury custom-fit men’s clothing
brand in the US that has built a direct selling
business model around insight, and grown
through building trust
The company has 50 employees and a multilevel direct selling model (similar to Avon)
The choice of direct selling as the channel was
driven by insight and understanding:
– The founders saw how Amazon had
succeeded in stripping back mark-up on
books (by cutting supply chain and
distribution), but understood that ecommerce for clothing was challenged by
consumers’ need to see, touch and feel
the products
– They used the insight that men do not
enjoy shopping for clothes, and decided
to build a network of representatives who
would make house calls; solving the
dislike-for-shopping issue and cutting costs
so that the pricing remained similar to offthe-rack
– This created a compelling value
proposition of custom-fit, quality clothing
for off-the-rack prices without the hassle of
shopping
J.Hilburn’s sales representatives (“Style
advisers”) visit customers at their home or
office, take their measurements and show fabric
samples and a catalogue
The trust that builds between style advisor and
customer is the company’s most valuable asset,
and the style advisers are well supported
with technology, communications and
http://www.nytimes.com/2011/11/03/business/smallbusiness/j-hilburn-wants-to-sell-online-casestudy.html?pagewanted=all
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©XPotential 2012
individual support. When their e-commerce
site is launched, style advisers will still receive
commission from their customers’ orders
Customers spend, on average $400 to $500 a
year with the company.
A testament to the quality and trust of the
representative-customer relationship is that
their latest e-mail campaign had a 50% open
rate (very high for mass e-mail), and the reorder rate is an incredible 93%
The direct sales model is particularly good
for custom product like this, as it reduces the
number of steps and opportunities for
misunderstanding in the selling process
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9. Passion
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To create convincing direct sales-people, the brands
they represent must be built around passion and
instil this into their representatives to create
advocates
Through building personal relationships with
consumers, providing a social aspect to their contact
with the brand and developing their product
knowledge better – door-to-door selling can be a
catalytic way to grow passion around a brand
©XPotential 2012
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10. Passion: A Foundation for Business
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Every business has a better chance of success
when driven by passion, but passion is
especially important for direct selling; to
create and keep persuasive and driven
representatives to keep the sales channel
alive
“The Avon lady who visited my mom wasn’t
just some sales drone: she maintained
personal relationships with her clients and,
most importantly, used and loved Avon
products” (Anthony Zumpano, Brand Channel)
The leading Brazilian cosmetics, fragrance and
personal hygiene brand, Natura, is a great
example of passion driving a direct selling
business
Natura’s slogan is “Bem estar bem” (well-being
http://www.brandchannel.com/features_profile.asp?pr_id=429
http://adage.com/article/global-news/brazilian-cosmetic-company-natura-buildingbrand-globally/228143/ markets.ft.com
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©XPotential 2012
well), and sustainability is the passion that
has been driving the company since it was
founded in 1969
This passion is not a response to current
trends, but is embedded in every part of
the business, from use of natural ingredients
in their formulas to paper reduction in office
activities. There is no animal testing, they
were among the first to sell re-fills, they use
biodegradable or recycled packaging. In 2005,
Natura was cited in a UN report, “Talk the
Walk,” as one of the pioneers in green
marketing and is seen as "the real deal" ecofriendly company
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11. Passion: A Foundation for Business
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With one million consultants in Brazil, Natura is
the leader in direct sales (ahead of Avon)
Passion drives Natura forward, to keep
improving and expanding: the company has
invested in a concept store and R&D unit in
Paris to improve development
– "We've always been concerned about
using natural ingredients. French
consumers are highly aware, and
their demands have helped us
improve. Before becoming a global
brand, we want to reach global quality.”
Natura VP Jose Vicente Marino
Year on year Natura grew revenues 8.85%
from $5bn to $6bn (in 2011)
http://www.brandchannel.com/features_profile.asp?pr_id=429
http://adage.com/article/global-news/brazilian-cosmetic-company-natura-building-brandglobally/228143/ markets.ft.com
©XPotential 2012
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12. Passion: Spreading the Word
Via direct selling, face to face contact with consumers can instil passion through understanding, experience,
excitement and embodiment.
Understanding:
 House calls can be mutual beneficial; when the shopper
does not feel pressured, it is an opportunity for
sellers to gather insights about how consumers see
that brand and what they want from the products, price
sensitivity and competitors etc.
 For the seller, house calls provide an opportunity to
demonstrate and explain products – it is essential
for them to be well-informed and enthused, conveying
their passion
Excitement:
 To create passion and succeed in direct selling, brands
need to breed excitement, e.g. through new product
launches to give representatives something to go
back to customers and talk about. Natura gets 60%
of its revenues from products launched in the last 2
years.
 It is also important that the catalogue / website are
exciting, to speak for the company and keep passion
and interest alive in between rep visits. Some reps
choose to let the catalogue do the talking and cut out
the “hard-sell”, unlike in big retailers, products
displayed in a catalogue are not plagued by the
distraction of other brands nearby
http://www.directsellingnews.com/index.php/entries_archive_display/beauty_everlasting
http://csi.mckinsey.com/en/Knowledge_by_region/Americas/brazilbeauty.aspx
www.marketingweek.co.uk http://anitak.hubpages.com/hub/Direct-Selling---The-Keys-to-a-SuccessfulHome-Based-Business
©XPotential 2012
Experience:
 Many direct selling companies aim to
create an engaging experience at the
point of sale (in the home), providing a
talking point and fun memories of the
brand that will be shared with others,
for example WIV Wein provides at-home
wine tastings for customers before they
buy
 Party experiences can be a good way to
sell and promote passion for fun /
interesting products. For big
investments items, experience (e.g. trial)
can help to reassure
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13. Passion: Spreading the Word
Embodiment:
 The representative is the main communication from most direct selling brands, so
in order to build the brand this person needs to embrace it. Natura invest a lot of effort
here, based on the company belief in the importance of relationships. Consultants are
rewarded for sales, longevity, and presence at events, and offered professional training
and development; Natura know that this is the front line for their values.
 The company works hard to improve areas of consultant dissatisfaction and as a result
has a 91% consultants satisfaction, enjoys low turnover, and has received awards such
as “Most Admired Company”, “Most Trusted Brand”, “Best Company to Work For”…
Mauricio Bellora, Natura's Executive VP says, "We pay attention to our relationships
with our consultants, so we had low turnover and kept up productivity for healthy
growth.” With dissatisfied representatives, hopes of transferring brand passion to
consumers would diminish. Reward also acts as motivation, with many direct selling
companies offering commission to representatives for recruiting more
http://www.directsellingnews.com/index.php/entries_archive_display/beauty_everlasting
http://csi.mckinsey.com/en/Knowledge_by_region/Americas/brazilbeauty.aspx
www.marketingweek.co.uk http://anitak.hubpages.com/hub/Direct-Selling---The-Keys-to-a-Successful-Home-Based-Business
©XPotential 2012
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14. Community
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By adding a personal and social aspect to the buying
and selling of products, brands that sell door-to-door
become part of the community
At the same time, the direct selling channel helps to
build communities centred around brands, which
improves advocacy and loyalty
©XPotential 2012
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15. Community: Growth through Existing Community
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Direct selling success stories can come from
understanding local communities and
recognizing ways to meet their needs and
grow through them
In India, Unilever connected with rural
villagers to sell products through them to their
neighbours, for commission
This “Shakti Initiative” began in 2000 and had
grown to more than 50,000 entrepreneurs in
the first decade, covering 3 million homes.
The micro-enterprise opportunity doubled
the household income for the rural women
involved, while doubling Unilever’s rural reach
through the existing community – a similar
approach is now being used in Sri Lanka,
Bangladesh and the Philippines
Natura’s door to door business has earned
success in Brazil because of its fit with the
culture and community; people love to talk
and personal touch is highly valued, sales reps
also appreciate the opportunity to make extra
income for their household, without needing
business experience, credit or to live near city
offices
www.unilever.co.uk
http://csi.mckinsey.com/en/Knowledge_by_region/Americas/brazilbeauty.aspx
http://www.directsellingnews.com/index.php/entries_archive_display/top_performing_global_markets
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©XPotential 2012
Many door to door brands are benefitting from
the “staying in” trend that has emerged in
countries like the UK as a result of the financial
crisis; Come Round is a company that makes
use of the home setting to create buzz and
promotion (rather than direct selling) by
providing sponsored “Party Packs”, e.g. for
the launch of a Lady Gaga album and
encourage hosts to share pictures and talk
about their experience, essentially putting a
brand at the centre of a social gathering in
the community. Smaller BTL activities like this
can drive loyal fan-ship, and feedback from
them can help brands to test and hone their
offering.
Rather than create their own events, some
direct selling brands like PartyLite (candles and
home accessories) are also sold by
representatives at local bazaars and fairs
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16. Community: Building Social Groups around Brands
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Direct contact between brands and consumers
(i.e. not via a retailer) can help in building a
social side to brands, bringing the brand
benefits of social identification and
belonging to a community – such as loyalty
and word of mouth
In Mexico, Natura opened a community space,
“Casa Natura”, which could be used for
community gatherings and education,
consultant classes and internet café as well as
promoting their products; building a community
facility around the brand
Attending branded social gatherings can boost
loyalty and conviction, as seen in
WeightWatchers; people who attend meetings
are more likely to stick to the system and lose
weight. Even if they do use the system
independently online, slimmers are included in a
community of like-minded people, allowing
http://www.directsellingnews.com/index.php/entries_archive_display/company_spotlight_natura
www.marketingweek.co.uk http://www.cult-branding.com/cb101/seven-golden-rules-of-cultbranding.html http://www.slideshare.net/agentwildfire/it-takes-a-community-to-raise-a-brand-not-acampaign-presentation
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them to identify themselves as a member of
the brand’s group
Natura have extended their offering to appeal to
the modern desire to connect with social
groups online with their Mamãe e Bebê
(Mummy and Baby) line of baby and mother
care products, which is supported through a
website that offers information on parenting and
the facility for parents to exchange tips and
opinions; the site attracted more than 50,000
users last year
Other brands that have built their own online
social communities include Alli (weight loss),
Manchester United (football) and Nike, who
have created an online community for runners
where they can connect and share their
progress and personal improvement – giving
them a compelling reason to join
©XPotential 2012
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17. Community: Building Social Groups around Brands
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The benefits are tangible: people who join
branded communities are 71% more likely
to make a purchase as a result (Universal
McCann Social Media Tracker)
There are a number of reasons why people join
branded communities which can be leveraged
when creating the community, including:
– Brand resonance
– Interests
– Chance for reward
– Expression/venting
– Hobbies / creating
– Secret desires
http://www.directsellingnews.com/index.php/entries_archive_display/company_spotlight_natura
www.marketingweek.co.uk http://www.cult-branding.com/cb101/seven-golden-rules-of-cultbranding.html http://www.slideshare.net/agentwildfire/it-takes-a-community-to-raise-a-brand-not-acampaign-presentation
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Brands with a big social appeal can often
become the ultimate form of community; cult.
Some contributing factors include:
– Consumers wanting to be part of a group
that is different
– Brands with daring and determination
– Cult brands sell lifestyles
– Consumer input and needs met
©XPotential 2012
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18. Summary of Learnings
©XPotential 2012
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throughout the world, to create and deliver brand
equity”
Take a look at our website
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