Providing Mary Kay Employees with Own Webpages Saves Millions

By Susannah Patton

Sat, December 01, 2001CIO Call Michelle McGrath on any weekday afternoon, and you’ll hear her 5-year-old boy and 3-year-old twin girls playing in the background. Check in at 9 p.m., however, and McGrath will be online?in the quiet of her suburban Boston home?filling orders for lipstick and foundation, and e-mailing fellow beauty consultants and customers.

Mary Kay, known for its pink Cadillacs and old-fashioned face-to-face salesmanship, was thinking about women like McGrath when the company set out to create online tools and personalized webpages for its sales reps four years ago. The Dallas-based cosmetics company takes pride in pampering its 800,000 beauty consultants?awarding high performers with sales incentives and prizes, including the famed pink Cadillacs.

Instead of selling its products directly from its website, Mary Kay decided to help its sales force set up sites and manage home businesses online. The idea was that the beauty consultants would be more productive if they could contact customers and send their orders to company headquarters whenever they wanted. Mary Kay’s approach also helped avoid the channel conflicts experienced by many other direct sellers as they developed Web initiatives that sometimes bypassed the sales force.

"The Internet has freed up my time and allowed me to keep in touch with my customers," says McGrath, who has 500 customers on her e-mail address list. "My service is better and my business has tripled in three years. What’s most important is that my customers can reach me anytime."

Unlike many other direct sellers that have stumbled with Web initiatives, in some cases angering sales forces, Mary Kay has found a way to foster its primary asset?an enthusiastic sales force?while gaining e-commerce efficiencies. Customers can’t buy directly from Mary Kay’s sleekly designed website as they can at Avon.com. Instead, they’re directed to the personalized site of a nearby consultant, where they can order products online or call for over-the-phone advice.

Mary Kay has spent close to $15 million during the past five years to get its sales force online and to host personalized webpages for any interested beauty consultants in the United States. So far, roughly 24 percent?or about 120,000?of the company’s U.S. consultants have their own site. Mary Kay is also hosting sites in Canada and the United Kingdom, and Kregg Jodie, senior vice president and CIO, expects the program to expand to other countries soon.

The effort is clearly paying off. Internet ordering now accounts for 70 percent of Mary Kay’s revenue and is helping the company save money. Where each order from a beauty consultant used to cost more than $3 to process, electronic orders now cost the company less than $1, saving Mary Kay "well into the millions" during the past five years, according to Jodie.

Loading...
Network MarketSpace
White Papers
The Challenge of a Demanding Network Infrastructure
Today's data centers are expanding as demand for data and storage continues to grow exponentially. Learn more »
Reduce Infrastructure and Administrative Costs
The Brocade® FastIron® CX Series of switches provides new levels of performance. Learn more »
A New Generation of Application Delivery Controllers (ADCs)
Learn more about Brocade® ServerIron® intelligent application delivery and traffic management solutions. Learn more »
Want to Offer a Superior User Experience?
Control a "boundary-less" enterprise with scalable solutions. Learn more »
Realize Potential Without Increasing Your Risk
Combining Brocade's high-performance infrastructure and McAfee's Web gateway solution ensures trusted environments. Learn more »
Brocade and Imperva: Providing Best-of-Breed Products
Web applications have become the backbone of business in nearly every segment of the economy. Learn more »
 
SPONSORED LINKS
 

Maximizing the Business Value of the PC Infrastructure

Enterprise PBX Comparison Guide

Getting Value from Outdated Networking Equipment

Seven Ways ITIL Can Help You in an Economic Downturn

Data Loss Prevention: A Better Way to Approach Security

Learn how to managing client systems in the enterprise.

Cloud Computing: Read about VMware's compelling vision & set of products

Losing Ground: 2009 TMT Global Security Survey

Accenture IT Consulting: Logical meets technological. More . . .

Stop Application Fraud at the Source with Device Reputation

Learn about the VMware vSphere (TM) & Intel (R) Xeon (R) Processor 5500 Series

Learn how a virtualized enterprise can help your company reduce costs

Why Isn't Server Virtualization Saving Us More?

8 Key Ingredients to Building an Internal Cloud

Data Center Optimization: Three Key Strategies

A CIO Executive Guide: Cloud Computing Looms Big on the Horizon

Oracle WebLogic Server Technical Demo

Data Grids and Service-Oriented Architecture

Achieving the Impossible: Unlimited Application Scalability

A Middleware Foundation for Application Grid

Tips for successful virtualization management.

Smart Decisions: The Role of Key Performance Indicators

Gartner Shares Predictions for 2009

Accenture IT Consulting: Enabling high performance. More...

Top Five CIO Challenges

Enterprise PBX Buyer's Guide

Secondary Market Primer: Your Network at Half Price

Taking the Service Desk to the Next Level

Why Data Loss is Increasing--and What You Can Do About It

Communications and Collaboration Needs at Business Organizations

Using Open Source to Deploy Web Applications

Mid-Sized Company CIO Community: infoBOOM!

Top-line Performance that's Bottom-line Efficient

Accenture: Outsourcing for uncertain times. Click to learn more.

White Paper: 8 Key Ingredients to Building an Internal Cloud

Read about virtualization and consolidation effort best practices

Building the Virtualized Enterprise with VMware Infrastructure

Top 10 Business and IT Drivers for the Wealth Management Sector

Bottom-Line Benefits of Virtualization

White Paper: The Building Blocks for Cloud Computing

Oracle's Application Grid Technical Demo

Next-Generation Application Servers and Infrastructure

Application Infrastructure at Enterprise Organizations

Achieving Business Agility with Application Grid

Learn about The Information Technology Infrastructure Library.

Achieving Pervasive Performance Management

Automating the Generation and Secure Distribution of Excel Reports

Introducing the new HP ProLiant G6 server family

Accenture: Outsourcing for Competitive Advantage. More...

Better spam protection with Postini for just $1/user/mo

 
 
RESOURCE CENTER