Amway

Manufacturing and marketing company Amway is bypassing communications bottlenecks using Datasquirt’s CONTACT to manage its text and email messages.

Amway2

Life gets busy for Amway and its IBO network towards the end of each month. The company pays its IBOs using a tiered structure - the more they sell, the higher their commission rate - which is calculated monthly. As the month draws to a close, there's a flurry of activity with IBOs stretching to meet sales targets and reach higher reward levels. As a result of the increased activity, 70 percent of the contact centre's traffic arrives in the last three days of each month.

Amway is now delivering timely outbound marketing campaigns to its entire Australasian network of independent business owners (IBOs) during peak email and phone-traffic periods. During its month-end peak, Amway is using timely outbound SMS text messages to keep IBOs informed of their current status and, if necessary, to encourage them to move up a gear. It also uses SMS texts to communicate special offers and other promotions, as well as sending congratulatory messages to the month's high achievers - something that has proved popular.

Using SMS to grow sales

Amway New Zealand's regional contact centre manager, Gay Reed-Barrance, says SMS text messaging has been a very successful outbound marketing channel for a number of reasons: it's cost-effective, fast, efficient, interactive, fun and, most important of all, it grows sales.

It also smoothes call centre demand and enables the contact team to work smarter, with staff handling incoming text messages between phone calls. Another benefit is that all customer history is captured in a single database.

She says: "Email looks cost-effective and it can be at times, but not everybody opens all of their messages straight away - in fact, some don't open them at all. We know this because we monitor responses. On the other hand, very few people say no to text."

Text is a particularly appropriate communications channel for Amway because many IBOs tend to be out and about visiting customers rather than sitting at home in front of a PC. It's also a popular communications channel with people in Amway's key demographics - 30 percent of IBOs are Asian and many are younger people who are more comfortable with cellphone messaging.

There's a noticeable impact on internal reporting. "CONTACT tells us how many messages are sent and how many IBOs respond - the rates are very good," says Reed-Barrance. "We also know very quickly what percentage of people said yes or no to a promotion."

Targeted cost savings

Text doesn't just deliver a high read and response rate it's also very quick, with up to three-quarters of Australian IBOs and half of New Zealand IBOs replying within two hours.

Reed-Barrance says SMS text is cheap compared with the cost of making and handling voice calls - with the added advantage that there's much more potential for automation. She says CONTACT has the ability to highlight and act on key words, so, for example, each year when IBOs are asked to renew their relationship they can get a reminder text and their replies can be processed automatically.

"CONTACT tells us how many messages are sent and how many IBOs respond - the rates are very good. We also know very quickly what percentage of people said yes or no to a promotion."Gay Reed-Barrance, regional contact centre manager, Amway New Zealand

"We also use it for competitions - it can be highly targeted." The company is now using text to sell products and provide other essential information throughout the network.

Text has also moved to centre-stage inside Amway itself. The contact centre teams are currently located in different parts of the company's building, so team leaders now use it to report internal performance information every half-hour.

Key solution features/benefits

  • Improved response time from IBOs in the field
  • Automation that allows the call centre to 'do less better'
  • Integration of non-voice contact into call centre processes
  • An over 20% reduction in administration staff providing real cost savings
  • The opportunity to introduce quality assurance - responses can be reviewed before they're sent to a customer
  • Customer history is captured in one place.

About Amway

Amway began in 1959 with two young entrepreneurs in the United States. Richard DeVos and Jay Van Andel developed an innovative business plan that offered anyone the opportunity to build their own business and share in the profits of a range of exceptional products. Today, Amway boasts over 450 quality products and millions of Independent Business Owners worldwide. It is represented in over 80 countries and territories throughout the world. Last year alone, 3.5 million IBOs renewed their businesses. The company has a global staff of over 6000 scientists, marketing professionals, product experts, farmers, managers and other employees. For more information please visit http://www.amway.co.nz/

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