There were times when it was known that the manufacturer of a product is not the seller. There was no contact between the buyers and the business owners. Later on, as a consequence of the internet, owners became more concerned about how their brand is perceived. With the appearance of social media, it became clear that a more direct approach is needed.
Now, consumers have access to each piece of information about the brand they are buying from. Companies had to adapt to this enormous change on the market, and with it the direct-to-consumer model emerged.
What does direct to consumer mean? Direct to consumer is defined as a supply of a product from the manufacturer to the consumer with no intermediaries. This means that retailers are not involved in the process. D2C allows businesses to tell their brand’s story in their own words and give value to the customers that would immediately affect their brand image. With the exclusion of third-party distributors businesses develop strong customer relationships that proves to be a lot more lucrative option compared to the traditional way of work.
Direct to Consumer Marketing
As D2C is booming more businesses are trying to please their consumers' needs. They are trying to provide all the information they can, directly to them in order to reach maximum transparency. This has been a game-changer for customers also that offers better buying experience overall.
These days people expect personalized experiences specifically tailored for their needs. Regardless if they are receiving an ad, a personalized email to their inbox or talking to a chatbot, consumers are engaging with the brand. Most of all, these new trends help eCommerce businesses guide each customer through the marketing funnel.
Many millennials are identifying with particular brands and do not consider buying before seeking them online. If your business is targeting this market segment, your online activities must be exceptional in order to attain their short span attention.
The proper way to do D2C advertising is to bring value to people but also guide them through the marketing funnel. In the majority of cases, this is done through personalized content.The statistics are showing that this kind of content may not be a walk in the park, but companies who invest in it get to surpass their competitors by 20% in one year. A great example of personalization in practice, is providing a unique experience based on the knowledge that you already have of your visitors. Using their name in the content and giving them suggestions based on their recent searches is more welcoming, more insightful, and will more likely get people to buy your products or use your services.
Moreover, the marketing budget is shifted from the old, traditional way. Radio and television are no longer used as the main channel for sharing the brand’s story. Today businesses use social media platforms and email marketing as main channels for reaching their targeted audiences. These platforms provide the direct approach that D2C marketing requires.
Direct to Consumer Trends
When it comes to profits through eCommerce, startups are looking up to giants such as Amazon. Today, more and more manufacturers are offering their products on their own platforms. Simply put, the eCommerce growth is also the growth of the D2C model, and as we all know eCommerce shows no sign of slowing in the coming years.
Direct to consumer startups have been on the rise these past years. These new businesses want to bring value to their consumers while setting new D2C trends. These trends involve eCommerce in the process. They are ignoring the standards by using the benefits of eCommerce and the limitless cloud to deliver their products to their buyers.
These businesses are saying that if you can come up with an idea for a product and build a website, it’s not so difficult to get people to buy it. With this kind of control over your business you’re free to create the story of your brand as you please. Engaging your customers through top notch marketing activities is the first step that will help you build a profitable D2C eCommerce business from scratch.
This D2C model has allowed businesses to affect the buyer's journey. People no longer need to visit a retailer with the emergence of this eCommerce D2C model. The change is most notable in the following categories: health and beauty, clothes and shoes, pet supplies, everyday grocery items, and household goods. These are serious market categories that noticed the possibility of excluding retailers for delivering their goods. This new generation of D2C eCommerce brands is selling everything, from the cheapest product used daily, to luxurious goods.
You are probably already familiar with what presale is. It’s been used in the music industry for a long time. It's the phenomenon of when tickets are gone in a blink of an eye. This is due to the presale that has been done before the actual sale of the tickets.
More brands are considering this presale idea for nurturing their customers. They are providing them with a presale code before an actual product or a whole collection is known to the public. These D2C presale codes are given to reward the customer's loyalty. These people are given a chance to find out about a particular product before it has been delivered. They can also buy it before anyone else.
More businesses are following these tips from the music industry. The selling through a website is making the presale process even easier. There has been a huge growth in direct to consumer online selling, up to 58%.
Generally speaking, you must be active in the direct-to-consumer marketing process. With customers having trust and getting value from your services, you create an unbreakable bond. Also, it provides you with a database of content consumers and rewarding them with presale codes will help grow your business in the long run.
Nowadays everyone is looking to build an online presence. With eCommerce, this presale strategy shows consumers that you care about them and want them to explore your brand before anyone else.
The D2C presale makes people look through the products you already offer to which they are not aware of. So, between one in four people will add additional item in their cart that they didn’t come there for. This is the only good way for you to build customer reviews based on their satisfaction.
Future of D2C eCommerce
The future of this trend is favorable since there lots of new promising technologies that are jumping on this bandwagon. The brands who are differentiating themselves with the D2C strategies will continue to use new ways to improve the customer experience.
As technologies improve, consumers will have an even greater influence. Even now, with D2C marketing, consumers are taking control of the information. They are controlling their data and they define how they wanzt to be approached by brands.
It is considered that D2C eCommerce companies that embrace this shift will be the ones that will experience growth in their business.