| Tabla de Contenido Table of Contents | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
1. Scope
The scope of this process is to display everything related to the genealogy and management of the network, how to track it, make adjustments to it, transfers, provide a more detailed view of the types of networks, visualize the network through the genealogy tree, and its levels of depth.
Network Structure
Types of Networks
Network Tree Network Adjustments
Network Calculation
Network Monitoring
Management Inquiry
Segmentation Rules RFM
Starter Kits
Analysis and Reports
1.1. Software Coverage
Genealogy
Network Structure
Types of Networks
Sponsorship
Sponsorship
Matrices
Network Tree
Structure
Level
Generations
Historical
Network Adjustments
Transfers
Compression
Network Calculation
Monitoring and Management
Network Management
KPI (Key Performance Indicators)
Network Tree
Key Information
Viewer Centralized Query
Segmentation
RFM (Recency, Frequency, Monetary)
Starter Kits
Rules
VIP
Incentive Groups
Analysis
Dynamic Dashboards Reports
2. Definitions
It is essential to understand the main functionalities that the system offers in order to manage consultants and all individuals within the network effectively. Initially, it's of great value to identify the different terms used in the system to gain a better understanding of their purpose and operation.
...
What is RFM (Recency, Frequency, Monetary)? RFM is an analysis that helps determine the best customers or consultants based on when they made their last purchase, how frequently they make purchases, and how much they spend. This analysis leads to a classification based on this performance.
3. Highlighted features
Hierarchy control of genealogy through the network tree: The network tree enables management of various components within the network, including structure visualization, personal information, monetary transactions, etc.
Network updates: Maintain the current state of the network through transfers or network compression and perform network calculations to keep commissions and information up to date.
Access and monitoring via centralized query: Manage information by searching for individuals, tracking orders, monitoring performance (KPIs), etc.
Diverse network monitoring modes and KPIs: Different methods are available to monitor the network and its relevant information, such as performance indicators in the business context.
Various segmentation methods for the network: The network can be classified based on performance or progress in sales or as defined by the company. Different methods or strategies can be applied based on this segmentation.
4. Conditions
For the proper utilization of the software functionalities, it's essential to have the following technical and/or business elements defined beforehand:
Network Structure and Management Definition: Establish the network model used in the system and all related structures.
Consultants' Objectives and Functional Scope: Based on the business model, define the types of actions consultants can perform and the functionalities they can access.
Scope of the Career Plan: Define how consultants will be classified and what the goal of the roadmap is according to the planned scope.
Network Adjustment Flow Model: Determine the flowchart of processes to execute necessary network adjustments according to the scope.
Criteria for Network Compression: Based on the business model, establish the conditions or validations to consider for network compression.
Model for Applying Rules for Network Segmentation: Define the application of rules to segment the network (as applicable according to the business model).
5. Functioning of the Software
5.1. Journey
David from the sales department is responsible for managing individuals who are part of the company. Once they have gone through the registration process, after a certain period of time, David needs to know:
...
Analysis and Reports Finally, David will have additional functionalities to utilize this information, such as conducting analysis and generating reports.
6. Configurable Elements
6.1. Main Configurations
Configuration of specific consultant/genealogy widgets.
Configuration of the network structure.
Configuration of KPIs - tracking model.
6.2. Configuration of related modules
Configuration of political divisions.
Configuration of environment variables.
Number of network levels.
Parent network level.
Internal code of the parent network.
Goal configuration.
Segment configuration within goals.
Goal dashboard configuration.
Checklist configuration.
Configuration of products marked as Kits.
Assignment of widgets and reports to a desired role.
Configuration of roles and permissions.
6.3. Module Configuration
Unlike other modules, this genealogy module is primarily configured through Role Access and Environment Variables. These two elements allow the establishment of permission levels and operating conditions for each module, according to the user's needs and preferences.
6.3.1. Environment variables
Name | Description |
|---|---|
CUSTOMERMANAGEMENT_NEWVIEW_SHOW | This environment variable controls the full display of the consultants' screen, altering the view of the record table. |
NETWORK_CALCULATE_NETWORK_BY_REFERENT | Controls the display of the button to draw the network tree. |
With Value = F With Value = T | |
LOAD_WITH_CUSTOMERS_SCREEN_FILTER | If the value of the environment variable is equal to 'T', then by default, upon entering the administrator, it filters for active users. |
With Value = T With Value = F | |
6.3.2. Rol access
These are permissions assigned to user roles to show or hide specific options or actions within the software. Below, you will find the role access related to actions in the consultant administrator.
...
Name | Description |
|---|---|
SHOW_MATRIX_LOCATION_BUTTON | Controls the visibility of the Matrix location. |
SHOW_LOBBY_BUTTON | Controls the visibility of the lobby, which is used to manually move a user within the network position. |
CUSTOMER_MANAGEMENT_COMPRESSING_NETWORK_BUTTON | Controls the visibility of network compression: which allows the network to be reorganized according to business conditions. |
CAN_RECALCULATE_NETWORK | Controls the visibility of the "Recalculate Network" action and its associated popup window. |
ENABLE_EXTEND_REGISTRY | Controls the visibility of "Basic Extended", which is used to create new registrations within the network. |
ENABLE_SHORT_REGISTRY | Controls the visibility of "Purchase Registration", which allows registering a user within the network by placing an order at the time of registration. |
CUSTOMER_MLM | Controls the visibility of "Send Network Mail," which enables sending mass emails to individuals within the network. |
CUSTOMER_LOAD | Controls the visibility of "Upload Data," which allows for bulk user registrations/migrations to the network. |
EXPORT_PERFIL | Controls the visibility of "Export Profile". |
SHOW_BUTTON_EXPORT_CLIENT_NETWORK | Controls the visibility of "Customer Network Information." |
CUSTOMER_EXPORTDATA | Controls the visibility of "3. Export customer information". |
CUSTOMER_EXPORT_DISTRIBUTORS | Controls the visibility of "Export Health Consultants" if the role access "CUSTOMER_EXPORTDATA" is assigned. |
CUSTOMER_EXPORT_LOADABLE | Controls the visibility of "Export Loadable" if the role access "CUSTOMER_EXPORTDATA" is assigned. |
CUSTOMER_EXPORT_EXTENDED_LOADABLE | Controls the visibility of "Extended Exportable Loadable" if the role access "CUSTOMER_EXPORTDATA" is assigned. |
ADD_ORDER_BY_OPERATOR ó ADMIN. | Displays information of all users within the company's network in the record table. |
SELLER o ST_SELLER | Displays only the information of the currently logged-in person in the record table. |
CUSTOMER_MLM | Displays in the record table only the information from the network of the currently logged-in person. |
CUSTOMERMANAGEMENT_MAX_LIMIT_RECORDS | Defines the limit of records to be queried. |
CUSTOMERMANAGEMENT_COMMERCIALACTIVITY_WIDGET_SHOW | Controls the visibility of the Commercial Status widget. |
CUSTOMER_MANAGEMENT_WIDGET_STATUS_SHOW | Controls the visibility of the States widget. |
CUSTOMER_MANAGER_NETWORK_INDICATORS_WIDGET_SHOW | Controls the visibility of the Network Indicators widget. |
CUSTOMERMANAGEMENT_SEGMENT_WIDGET_SHOW | Controls the visibility of the Segments widget. |
CUSTOMER_MANAGEMENT_SHOW_NEW_WIDGET_RANK | Controls the visibility of the Rank widget. |
7. Detailed Scope
7.1. Genealogy
Genealogy is a tool that aids in effectively managing the structure of the network, whether it's for:
...
| Panel | ||||||||
|---|---|---|---|---|---|---|---|---|
| ||||||||
Previous Configurations For genealogy and the network to function properly and accurately, these configurations need to be set up:
|
7.1.1. Network structure
Through the software, it's possible to parameterize different network structures according to width, depth, and business criteria (Territory, matrices, etc.), such as:
Binary
Uni-level
Matrix
Limited depth and/or width
Territorial
Hybrid mix
7.1.1.1. Network types
The software supports the simultaneous configuration of the following networks according to the aforementioned structures:
Network by Sponsor This refers to the person who leads a network of consultants and ensures that their team's work is developed.
Network by Referral/Sponsorship This relates to the person who invites another to join the business as a distributor and thus builds their network.
Matrices A network created based on business rules. Typically, during recruitment processes, networks are established based on matrices with fixed width and depth. These matrices allow for special bonuses to be calculated for achievements and reaching certain sales volumes, among other purposes.
7.1.1.2. Network tree
Network Marketing, also known as Multi-Level Marketing (MLM), is a direct sales system in which individuals associate with a company as independent partners. These individuals then recommend others to join the same company to purchase its products or services. The person who recommends others receives a bonus for the purchases made by all their associates.
...
View my descendants: This action queries the database to check if the node has descendants. If it does, they are displayed; otherwise, an alert is shown.
360-degree Consultation: This action is a link to a 360-degree consultation with the selected person, with prefilled information.
...
7.1.1.2.1. Genealogy structure
Parent of the Network
It's the "leader" record, meaning it doesn't have anyone above in its network structure. It doesn't have references from a Sponsor or a referrer.
Reference Fields
Referral
Sponsor
Network ID
Unique Field (per network type)
Concatenation of personal IDs from the Parent of the Network to the individual.
7.1.1.2.2. Depth Level
Absolute (from the Parent of the Network)
Relative (From the Sponsor)
7.1.1.2.3. Generations
Generations are the levels in a multi-level sales structure, and the larger they are, the greater the reference to the distance in the number of sponsors between two individuals.
...
1st Generation
2nd Generation
3rd Generation
7.1.1.2.4. Genealogy History
The rank history allows you to view the complete history of all the ranks a person has achieved. It displays the duration they held each rank, the previous rank, the new rank, as well as the campaign and date of the rank change.
...
Genealogical structure of the network
Title in the career plan
Attained KPIs
7.1.1.3. Network adjustments
7.1.1.3.1. State Machine
When managing a direct sales business, it's crucial to have effective management of both the company's personnel and the network it comprises.
...
Next, you choose the action to execute, such as "Integrate Network" or "Calculate Rank," and finally, you trigger the "Execute Process" button.
...
7.1.1.3.2. Network transfers
Transfers allow for the maintenance of up-to-date geographical regions or commercial management of the sales force, as well as the entire structure of their network.
...
Once this process is completed, the network should be recalculated to ensure it is updated.
7.1.1.3.3. Network Compression
Compression occurs in one of the final steps of commission calculation. It keeps the network updated and reorganized if the sponsor or the person one level above becomes inactive. Once this happens, individuals in a lower-level move to the same position where the inactive person was.
...
With this configuration, the system evaluates that certain individuals haven't placed orders for X campaigns. During the settlement and campaign closure process, the system labels them as dropouts. As a result, the system automatically places the individuals below in the network under the person above.
7.1.1.4. Network calculation
Network calculation is the process that traverses the entire structure of individuals, generating their updated status. This serves as the basis for calculating all associated Key Performance Indicators (KPIs).
...
Example: If a person is deleted, they will still be visible in the hierarchy until a recalculation is executed.
7.2. Monitoring
For the company, it's crucial to have control over what's happening, whether it's related to:
...
For this reason, there are various methods for monitoring the sales force, allowing for comprehensive internal management, and keeping track of everything happening in the system.
7.2.1. Network management
This module allows for tracking the Network, its structure, rank, commercial statuses, commissions, KPIs, sales, among others.
View the complete network tree.
Export network information
View invoiced orders.
Monitor performance, including the number of referrals and related information, etc.
7.2.1.1. KPI for the number of people in the network
For ongoing tracking of the company's growth, we have the capability to consult at a high level to determine the total number of registered consultants, end customers, and active participants. This allows us to understand the current indicators of the network's status and the individuals within it.
...
This widget displays the ranks of the network and the number of distributors in each rank.
...
7.2.1.3. Filter genealogy list for management purposes
Going into detail, it's possible to filter all consultants based on the following information, in order to perform more specific and rapid management, specifically targeting what's needed.
...
These filters are related to the individual's behavior in terms of sales. This includes people without orders and the traffic light indicator. Additionally, the "Record Limit" filter, which is the maximum number of records to be displayed in the table. Since the table doesn't have pagination, all the displayed records will be shown on the same page.
...
7.2.1.4. Network tree
In the network tree, there are various ways to monitor information, as it enables a more comprehensive view through a hierarchical tree structure, helping to understand its current layout and its constituents.
...
The network that the person leads.
Indicators, personal information, rank, etc.
7.2.1.5. Visualization of Key Information
Managing the sales force is crucial, as the effectiveness and performance of both the personnel and the company as a whole depend on it.
...
Centralized Information
Residence / Shipping Address
Contact Numbers
Profile Completion Percentage
History of Placed Orders
Calculated Commissions
Visualization of Indicators and Calculated Commissions can be obtained as follows:
...
7.2.2. Centralized query
It is essential in the management of a sales network to be able to gather information about any consultant. For this purpose, centralized querying allows access to this data to view necessary information and manage their activities and performance in the company. In this, you can inquire about information such as:
Basic Information
Number of Orders
Customer Service Cases
Invoices
Benefits
Used and Redeemed Coupons
Referred Individuals
Payment Management
Commission Management
Scheduled Events
Returns
Balance
Accumulated Points
Credit Limit
...
7.3. Segmentation
Segmentation is used to manage and categorize the sales force based on their performance in sales or in general. This hierarchy is based on the commercial states defined by the company. Segmentation can be carried out through:
...
Next, these will be specified in more detail.
7.3.1. RFM (Recency, Frequency, Monetary)
Recency (R): How recently a customer has made a purchase. Customers who have made recent purchases are often more engaged and responsive.
Frequency (F): How often a customer makes purchases. Customers who make frequent purchases may be more loyal and valuable.
Monetary (M): How much money a customer has spent. Customers who have spent more money are often considered more valuable to the business.
...
Segmentation Example:
Segment AA: Those who place an average order > $300,000 and have >= 6 consecutive campaigns.
Segment A: Those who place an average order > $300,000 and have < 6 consecutive campaigns.
Segment B: Those who place an average order < $300,000 and have >= 6 consecutive campaigns.
Segment C: Those who place an average order < $300,000 and have < 6 consecutive campaigns.
In this example, customers are segmented based on their average order value and the number of consecutive campaigns they have participated in. This segmentation helps the company tailor their marketing efforts and strategies to different customer groups based on their behavior and purchasing patterns.
7.3.2. Initial Kits
Starter Kits are memberships or products that are purchased to become a part of the company and start as a distributor. Based on the configuration of Starter Kits, it is possible to segment the sales force according to the Kit they purchase when completing their registration. This allows for categorizing distributors based on the specific Starter Kit they choose, which can provide insights into their level of commitment and potential engagement within the company's network marketing structure.
7.3.3. Rules
Rules allow for the definition of various conditions to apply or remove actions on the network and its orders.
...
Example: Segmenting the network by Gold, Platinum, etc. This means that distributors who meet certain criteria or achieve specific milestones, such as reaching a certain level of sales or performance, can be categorized into different segments like Gold or Platinum based on the defined rules.
7.3.4. VIP
This functionality is designed to manage a VIP sales force, allowing the option that once the calendar is closed, the company-selected and classified VIP members of the sales force do not become inactive.
This configuration can be done by the administrator or through a bulk upload of the selected sales force. In essence, this feature ensures that VIP members of the sales force remain active even after the calendar is closed, providing them with continued access and benefits within the system.
7.4. Analysis
These are very important for having control over all the variables of the business; they hold significant importance. Through S4, you can access all the information from the screen or generate reports.
For analyzing the information, there are different types of queries and reports available, such as:
7.4.1. Dynamic dashboards
Widgets allow for quick and visual access to information or indicators. They contain information from different components, providing a summarized way to access them.
...
Behavior of my network
Consultant segmentation
Top sellers by zone
Top consultants with the most referrals
7.4.2. Reports
Collecting and analyzing information is crucial for the business entity, whether to identify critical areas or opportunities in the market, and also to track various points related to sales.
...
Sales force tracking
Stencil report
New and reentries report
Sales - Clients: Network
Category network report
New network report
Total network report
New recruits report
Para continuar con la capacitación en la plataforma de S4DS accede al módulo …To continue with the training on the S4DS platform, access the Session 7: Sales Commissions and Incentives.
.