"A new customer program is launched. Now what?"
USANA Affiliate Research
This mixed-method research study provides a deeper understanding of the current state of the newly launched customer program.
Project Background​
USANA is a US-based, multi-level marketing (MLM) company that offers nutritional and beauty products.
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The current business model allows customers to sign up as distributors or retail customers. Distributors can earn commissions and enjoy discounts by selling products and building teams with new customers. However, many of the distributors operate their business traditionally, and offline. To meet the growing demand for digital marketing, the company launched a new affiliate program in January 2023 to attract more potential customers online.
The Problem
Thousands of new affiliates signed up after the program launched. However, feedback is missing.
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Moreover, when reviewing the revenue report, stakeholders are concerned about the discrepancy between expected performance and the actual sales data.
Research Objectives: ​
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Collect feedback from distributors' market leaders to gain insight into their concerns and challenges in working with the new affiliates.
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Collect feedback from affiliates regarding their overall experience and perceptions of USANA.
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Understand affiliates’ experience in different stages of their journey, including onboarding, business development, and communication.
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Investigate potential causes of the discrepancy between the expected behavior from affiliates and their actual behaviors.
Stakeholders:
​Product owners
IT manager
My role:
​Sole Researcher
Timeline:
​2 months
Methods:
​Interviews, Surveys, Focus Group
Research Planning
Through quick workshops and meetings, the team aligned on:
- Research objective and goal
- The scope of the research
- Research timeline
- Collaboration strategy
Kick-off workshop:
- Stakeholders list out all questions they would like this research to answer.
- Group questions based on topics.
- Discuss the scope of this research and clarify questions that need to be resolved in this research.
- Align on the project timeline.
Follow-up meeting:
- Review existing research data.
- Review the research plan and methods that will be employed.
​- Discuss collaboration strategies and clarify stakeholders' roles.
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Research Execution
In-Depth Interviews​​
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​- 6 affiliates from 2 markets​
- Reveal affiliates' current understanding and mental model of the affiliate program
- Understand affiliates' background and current experience
Recruiting
Rainbow Analysis
Interview
A remote 1-hour semi-structured interview was conducted with each participant.
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Interview questions example:
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Could you describe briefly how you signed up for the USANA affiliate program?​
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​What do you hope will come out of this affiliate experience?
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After signing up, what were some of the first few things you did that helped you move to your goal as an affiliate?
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How active do you consider yourself as an affiliate?
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As an Affiliate, what information do you feel you need to be able to track your goals or progress on a daily basis?
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Where would you go to find this information on USANA websites?
Findings
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For affiliates, the program serves as a side gig and should not interfere with their full-time job.
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Compared to the distributor program, the affiliate program is expected to be less complicated, less stressful, and provide greater independence.
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Affiliates struggle to identify the program they signed up for, understand their current status, find necessary information, decide on a business strategy, and determine the best approach for sharing on social media.
Focus Group​​​
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- ​7 distributors from 2 markets​
- Reveal distributors' current understanding and mental model of the affiliate program
- Understand the challenges and frustrations distributors were facing
Findings:
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Distributors believe the affiliate program will facilitate the conversion of regular customers into distributors, acting as a valuable stepping stone.
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There is a split perception among distributors: some view the program as designed exclusively for influencers, while others believe it is open to everyone.
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Distributors express frustration over the low return on investment (ROI) from recruiting new affiliates, as they feel affiliates are less committed to selling compared to traditional distributors.
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Distributors expect the company to provide more support and guidance for new affiliates.
Distributors' expectations of the affiliate program
Surveys
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- 300+ respondents across 3 markets, distributed through email
- Quantify some findings from interviews
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Findings:
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Over 50% of survey respondents are primarily interested in the discounts offered by USANA. Their main goals are to make purchases and enjoy discounts as retail customers, rather than actively sharing the products.
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Less than 20% of respondents have experience as affiliates. Those who do often affiliate with multiple brands simultaneously.
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Affiliates who intend to share more frequently prefer more regular and diverse communication from USANA. They express interest in learning more about the company and the program. In contrast, those focused primarily on being retail customers prefer less communication but want updates on ongoing promotions.
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Research Delivery
Detailed recommendations are given based on the data, covering various aspects. Some examples are:
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Enhance Alignment and Clarify Expectations: The company should foster better alignment and clearly communicate the vision and expectations for the program across different customer types. Distributors and affiliates have varying mental models regarding the program, leading to stress and frustration. Emphasizing the importance of sharing and appropriately rewarding sharing behaviors can help bridge this gap.
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Provide a Customized Experience: Affiliates come from diverse backgrounds and have different goals, necessitating tailored resources and guidance. Customizing the experience based on individual needs can lead to better outcomes for affiliates.
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Encourage Sharing Behaviors with Exclusive Discounts: Implement exclusive discounts to motivate and incentivize affiliates to share products more actively.
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Foster a Sense of Community: Affiliates consistently expressed the importance of community support during interviews. Building a strong sense of community can inspire affiliates to create and share content more frequently. Those who feel supported by a community are likely to engage more actively than those who do not.
All research findings are compiled into comprehensive reports, presented as slide decks and PDFs and shared with stakeholders through meetings. Example slides from the report:
Reflection:
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During the presentation of the research findings at the conclusion of this project, it became clear that the impact of the research extended to more groups than we initially anticipated. Since these stakeholders were not identified early on, the final discussion raised additional questions that could have been addressed within this research project. Moving forward, it will be crucial to clarify all potential direct and indirect stakeholders and understand how the research findings may influence their projects.