Harnessing the Power of the USANA Preferred Customer Program
- by Pete Zdanis
A number of years ago, USANA introduced the Preferred Customer Program, which was a significant enhancement to the USANA business model and compensation plan.
Here are just some of the reasons why:
· The Preferred Customer Program is a convenient way for Preferred Customers (PCs) to place orders directly with USANA online or by phone
· Preferred Customers can order products at Wholesale Price and are eligible for the 10% Autoship Discount
· There is no cost or obligation to become a Preferred Customer
· Compared to Retail Customers, Associates do not have to place orders, pay for orders, deliver orders or collect for orders placed by their PCs
· Associates can use their PC’s orders to qualify for their Retail Sales Order requirement of 5 Retail Customers every Four Week Rolling Period
· U.S. Associates who meet their Retail Sales Order requirement through Preferred Customers can be classified as Non-Distributor Associates and pay lower sales tax on their product orders than Distributor Associates
· PCs are more loyal and place larger orders than Retail Customers
· Many PCs who have had positive experiences with USANA and the USANA products have gone on to become successful USANA Associates
· PCs can be placed strategically to optimize an Associate’s Group Sales Volume (GSV) and Commission Volume Points (CVP)
And the list of benefits goes on….
Yet, despite all of these advantages, many Associates are still not utilizing the Preferred Customer Program as much as they could, or should, be.
For example, when a prospect/customer tells an Associate that they would like to order USANA products, some Associates are still placing the product order on their own ID number, paying for the order, taking delivery of the order, delivering the order and collecting for the order from their customer.
Often times, these same Associates are only charging their customers the Wholesale Price and absorbing the shipping costs, and, in some cases, the sales tax. So, in addition to all of the ordering and product handling requirements mentioned above, some Associates are actually losing money on their Retail Sales!
While we are all Independent Associates, and free to operate our USANA businesses however we choose within USANA Policies and Procedures, that doesn’t mean that we should make bad business decisions and lose money on every sale.
When I ask Associates why they are reluctant to put their customers on the USANA Preferred Customer Program, a common response is that they are “afraid of losing the sale” by making their customers feel “obligated”.
If this describes your feelings, let me suggest that you consider doing what we do:
When a customer tells us that they want to order some USANA products, our response is –
“Great! We would recommend that you let us set you up as a USANA Preferred Customer. There is no cost or obligation to become a USANA Preferred Customer. You will have your own account number with USANA, and you will be able to order directly from the company online 24-7, or by a toll-free phone number, and pay Wholesale, rather than Retail, price for the USANA products. Also, if you decide that there are some USANA products that you would like to order on a regular basis, you can participate in the optional USANA Autoship Program and receive an additional 10% discount from Wholesale Price on ALL of your product orders.”
When they agree, we simply ask them for their mailing address, email address and preferred phone number. We then explain that we will set up their USANA Preferred Customer account for them and get back to them right away with their USANA Preferred Customer Account number so that they can place their product order at their convenience.
We then call USANA, give them the new PC’s contact information, placement information, and establish the new PC’s account number. We explain to the USANA Distributor Services Representative that the new PC will establish their method of payment when they place their first order. (This keeps you from having to get credit card information from your customers, which we prefer not to do for a variety of reasons.)
We also set up a temporary PIN number for the new PC so they can place an online order ASAP. Our preference is to use the PC’s initials and ZIP, or Postal, Code for their temporary PIN number. For example: PZ19654
As soon as we are through setting up the new PC account, we then call or email the new PC to give them their PC Account Number and temporary PIN number. We tell them how they can place their product orders by phone or online, and that they can change their PIN number online anytime they want to.
NOTE: In those rare circumstances where a customer insists on placing a “Retail Order”, we ALWAYS charge them the Retail Price, plus shipping and sales tax, if applicable. NO EXCEPTIONS!
The Take Away
Hopefully, this article will help you realize how the USANA Preferred Customer Program can help you accelerate the growth of your USANA business while saving you a lot of time and money.
Please be sure to share this information with all of your team members, especially new Associates.
Doing so will help insure that good business practices and habits will duplicate themselves throughout your USANA business.
Best of success!
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