The Original Social Network

Social Networking. We all think of it as a new buzzword, but social networking has been around for years. One of the foremost companies that has been using social networking successfully is Avon. Yes, you heard me, Avon. You know, that woman who rings your doorbell and says "Avon calling."

 

Long before there was Facebook, Twitter, and the host of other current social networks were around, Avon had a huge network of Avon ladies connecting with their friends and neighbors by using their doorbell or knocking on their front door. They didn't need fancy computers, just a little shoe leather and determination. Every day they met new people, connected with old friends and family, they were in fact the precursors of Facebook et.al.

 

Can Avon survive the electronic social networking of today? They've been suffering some financial reverses in the last year, can they pull out of the slump?  Only time will tell. Can Avon survive the loss of confidence of Wall Street and investors?

 

What are some of the issues facing the Avon Representative of the 21st century? Fewer and fewer women are at home during the day so fewer women are there to answer the door when the Avon Lady (or man) comes calling. This requires Avon's reps to adapt to the newer forms of social media and move to an online presence, book parties or other ways to move their business.

 

While Avon provides each representative with their own web page, it's not the same as talking to someone face to face. That one on one contact has been a big selling point for Avon. Also fewer representatives are looking for a part time job. More and more women are working full time outside the home because they need the benefits or the full time salary, something Avon will find hard to beat.

 

Another problem Avon faces is the arrival of Walmart in more and more communities. Not only does Walmart frequently beat the prices in other businesses, but it also is fighting for it's share of the cosmetic business. And they want a piece of Avon's business. How Avon meets these challenges will likely effect the long term success of the company.

 

Marketing prof at Wharton, Peter Fader suggests Avon needs to return to focusing on it's customer base. He is quoted as saying "Avon has a gift which it does not fully appreciate." He suggests they focus less on brand and 'wishy washy things' and go back to basics, leveraging it's rich understanding of customers.

 

Today with the advent of electronic social media, companies everywhere are jumping on the bandwagon of customer-centric business models. They are making a better effort to understand their customers and identify their wants and needs, as well as their most valuable customers. Avon has always done this.

 

Companies are also using social media to promote their companies and their products. They want to benefit from the word-of-mouth marketing. It is very easy with today's Facebook and other social media. Avon did this early on by turning their frequent buyers into full sales reps where they could turn their personal product knowledge into sales tools.

 

Avon's new website acknowledges their early social networking with a section titled "Empowerment and Social Networking Long Before Facebook." Avon reps today are right in the middle of today's social networking businesses and are still selling cosmetics and fragrances to people they know through personal relationships. 

 

Avon still needs to work on using electronic social media to promote sales. Their blogs on their reps websites are difficult to use, importing photos of products is cumbersome. Some of their social media buttons to direct customers to a reps websites are hard to get to work without multiple calls for assistance. Meanwhile rivals like Sephora.com, Drugstore.com and Mary Kay are ahead of them online. Avon needs to embrace the world of tablets and smart phones to make purchasing easy and fast for women on the go.

 

So let's go Avon. You were there first, let's not be last out of the gate in the new electronic social media.

 

For more information read:

 

Avon's Andrea Jung: "You Will Stand On Our Shoulders" Knowledge@Wharton

 

Bernd Beetz CEO of  Coty: 'The Crisis Will Generate New Opportunities' Universia Knowledge@wharton