Everyone should care about Distributor Analytics

This post was first published on November 2nd, 2016. Written by LK.

In the mid 2000s, I took over the Distributor Analytics department of a major Direct Selling company. I was cautioned about taking on the role as it entailed lots of work and involved learning and forecasting the psycho-economic behavior of independent sales representatives. I recall being told “you will either be fired in six months or promoted. Understanding that this was my opportunity to create something novel, I dug into the millions of records of data trying to make sense of it all. After all, every challenge is an opportunity to overcome and create something novel.

The first test came within a week of taking the role. I remember my phone ringing immediately as I stepped off the plane in Las Vegas, where I was attending a Distributor meeting. It was my new boss telling me to immediately make my way to the venue for a sales meeting. As I sat down and looked around the room, I realized I was in the company of mostly C-level executives; this Manager of Distributor Analytics was in the big leagues. The meeting started and it quickly became apparent that I was the main course. “We are looking to launch a 12-month sales promotion tomorrow at 9AM and we need you to let us know how many people will qualify and what you think the total cost of this 12-month promotion will be.” I glanced at my watch and realized that the time was 1:30PM and that I had less than 24 hours to get this done. With a trembling voice, I answered “No problem, I will make it happen.”

As I walked out the room, I realized what I had gotten myself into. I had never done such an analysis nor did I have the data to conduct the analysis. Even if I did get the data, this would normally take a few days to complete. Panic-stricken I called my boss to explain what had transpired and what he thought I should do. His advice was to go back into the meeting and tell the room that the analysis cannot be done. Realizing that this was a chance in a lifetime, I did not take his advice but rather asked him to help me get the data to conduct the analysis. After all, I am a person who thrives on a challenge and by gosh, this was the mother of them all. After 16 hours of analysis and 45 minutes of sleep, I walked into the 8AM meeting and gave the go-ahead for the promotion. The CEO announced the $10 million promotion from the stage at 9AM to the cheers of a rambunctious crowd.

This experience was the trial by fire of what became a career in Quantitative Analytics. My department became synonymous with utilizing data to first understand behavior and then devise strategies to affect change in an industry that up to that point was very soft on facts and even understanding of key drivers. My department of one quickly morphed into a worldwide organization with analysts advising executives based on facts rather than hype. We developed simple metrics that allowed us to have an in-depth conversation about almost anything and anyone inside the company. All I needed was an iPad and an audience. Fact-based decision making was a major turning point for me and the company.

Today as I skim through the news, 10-Qs and listen to the pundits I am struck by a one sentence uttered by the CFO of a multi-billion dollar company — “No one cares about Distributor Analytics, Lyon!” I would argue that in today’s world, those who do not understand their salesforce and consequently their end-consumer are at significant disadvantage not only with the lack of understanding of the business model but also with the regulatory risk, sales pressures and lack of strategy. In today’s world, Sales Force Analytics is likely the most important aspect of any business. A thorough understanding of the business mechanics allows for proper strategy formulation to drive growth and minimize risk. These are fundamentals for all shareholders. Distributor Analytics does indeed matter — Especially to shareholders!

To learn more about our work, contact our team or follow us on LinkedIn. For more insights, follow our writers and editors: LK, Chris MGH, and Gabriel Queiroz Silva.

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