Direct to Consumer marketing, aka DTC, is bringing a paradigm shift in customer engagement in retail. From multinational brands like Nike to unconventional startups like Dollar Shave Club, businesses are leveraging the competitive advantages of DTC. If your business is also following the same path, what best practices are you following to stand out in the crowd?

Nike brand’s direct-to-consumer revenue worldwide from 2009 to 2019(in billion U.S. dollars)

Nike has been reporting considerable year-over-year growth in its DTC sales revenue. The company is projecting $11.75 billion in revenue for the year 2019.

As far as the traditional retail model is concerned, brands can expand their presence across multiple locations through retailers and other third-party channels. In that context, brands have limited control over the pricing, margins, and other trade-related matters. With more intermediaries involved, traditional retail increases operating costs for brands. On the other hand, the DTC model simplifies the complex traditional supply chain. It offers a vast scope for manufacturers to create brand value and build credibility.

Strike a chord with your customers

“You’ve got to start with the customer experience and work back towards the technology, not the other way around.” — Steve Jobs

The dimensions of customer experience go beyond the UI/UX of your e-commerce portal or the way your store-keeper interacts with your customer. Your offering should reflect the aspirations of your customers. They don’t love searching for a needle in a haystack. This is where the brands can make a difference with the direct-to-consumer model by assuring a customized experience for customers.

Being a niche-specific business, a DTC brand should not create an awful experience for shoppers with a bunch of options to choose from. Simply put, it should do it in Casper’s way!

The mattresses manufacturing company, Casper, produces only one kind of mattress- a solid, versatile one made with the combination of foam and latex. This decision was not a gut instinct but based on a thorough analysis of the market. This might have limited its prospect base but hit the bullseye. And the result, Casper would make $100 million in sale in two years!

A report from ‘Sleep Like the Dead’ showing customer ratings for various kinds of mattresses. Memory Foam and Latex are the top-rated models by customers, as per the study.

Stand Out on Social Media

The advent of digital technologies has brought customers and brands closer. Social media, above all, is the go-to platform for branding and marketing. Consumers these days always look for creative and informative content that adds value to them. Offer some thumb-stopping content to your customers and they will offer all the support your brand needs in the digital space.

Don’t you believe?

Check out Dollar Shave Club’s Facebook page. The unicorn startup has more than three million followers on the platform, outnumbering its rival, Gillette’s 2.1 million.

So, what kind of content should be created?

It all depends on your offering and the kind of audience your brand has. Mostly, content that adds value to the audience stands out from the clutter in social media. Dollar Shave Club, a men’s grooming product company, gets its male followers hooked through content around the well-being of men. Further, the brand also sells its products on the page, driving more sales and revenue.

Get Subscribers, not One-time Buyers

‘Subscription services’ has emerged as one of the most successful models in recent times. People love these subscription services as they happen recurrently with one- time payment, buying them some time to focus on other stuff, and also cost less. For traditional retailers, subscription models may pose challenges like inventory management and offering curated products. However, these challenges can easily be bypassed as far as DTC-based companies are concerned.

The direct-to-consumer model also works for established brands, which deal with traditional retailing, by creating new revenue streams. For an existing DTC business, the integration of digital channels will have a far-reaching effect as it will broaden its market reach.

Though it is recommended to have an e-commerce store while executing the DTC model, physical presence can help brands offer a seamless experience to customers. Integrating omni-channel solutions like Nucleus Vision can complement to the direct-to-consumer business strategy, by offering deeper insights into the walk-ins.

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