Analysis on the Forming Process of Customer Loyalty in Nu Skin Anti-Aging Products’ Referral Marketing from Customer’s Perspective

Venny Indri Christiyanti, Martani Huseini


Global aging crisis and the increased public interest towards anti-aging products   encourage direct selling companies with multilevel marketing technique to   innovate and compete in creating health and beauty products. In fact, multilevel marketing business in Indonesia has negative stigma and is violated by money game  practices. Amidst these phenomena, Nu Skin as a one of global direct selling   companies presents itself among the Indonesia anti-aging industry with the fast and promising business growth. Meanwhile, a research suggests that customer   loyalty tends to give substantial future profits to the company. Nu Skin uses multilevel  marketing technique in marketing its products, which is also known as referral   marketing. The emerging question is on “how is the forming process of   customer loyalty in Nu Skin Anti-Aging products’ referral marketing?” This research uses   qualitative approach with in-depth interview as data collecting technique. To   answer the research question, the research performed theoretical review on the   direct selling, multilevel marketing, referral marketing, customer loyalty and   other related aspects. The next step done is the process of in-depth interview with
selected informant. The result of the research shows that word of mouth in referral  marketing is needed to build the trust and to make the transaction happen between the   distributor and its customer at the first place, but it does not stop there. At the next stage, it is the customers’ satisfaction as the result of the high quality product usage that will make them stay and never switch.


customer loyalty; direct selling; multilevel marketing; referral marketing; word of mouth

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