The popularity of direct-to-consumer (D2C) marketing is quickly evolving the eCommerce landscape. More and more companies are now manufacturing, marketing, selling, and delivering their products directly to the consumer, bypassing the retailer.
Customers too prefer more streamlined and authentic brand experiences in this digital age. Brands can meet these needs by promoting and selling products directly to consumers with D2C marketing.
What is D2C marketing?D2C marketing (direct-to-consumer) has been there for decades. It is a strategy that includes manufacturing and selling products directly to consumers, without the use of wholesalers or retailers. Simply put, the sales process is less disrupted and more personalised. Nowadays, instead of physical stores, that sales process takes place on eCommerce websites and even social media. While there is no standard winning formula in the direct-to-consumer market, successful D2C brands share some key characteristics. These characteristics are as follows:
However, replicating the characteristics of successful D2C brands is insufficient. A direct-to-consumer model is much more complex than you might think. |
Pros of D2C marketing
- Affordably priced market entry: It is easy to set up an online store quickly using platforms like BigCommerce or Shopify.
- Full authority over brand visibility: A company controls its brand messaging, brand image, and customer support.
- Going directly to customer information: D2C marketing allows a company to get closer to its target audience, including their location, social media profiles, and purchasing preferences. This means that a brand can build custom experiences.
- Profit margins are high: By eliminating intermediaries, a direct-to-consumer brand can increase revenue and invest more in marketing strategies.
- A more solid customer relationship: D2C marketing allows for direct engagement with the target audience, which leads to increased trust and customer satisfaction.
- Facilitates innovation: Manufacturers can manufacture their products on a small scale to test the response of a target audience and collect feedback to enhance the product.
Cons of D2C marketing
- Conversion is difficult: Many D2C brands begin by offering free trials or low-cost products to entice customers. While this strategy can be effective, some people end up cancelling trials before they are paid.
- Requires a wide range of skills: D2C brands require expertise in a variety of fields, ranging from marketing to web development to customer service and the manufacturing process.
- Difficulty in prioritisation: Old-school leadership frequently treats D2C as an afterthought, preferring other, better-understood priorities.
- Supply chain visibility: Consumers expect total transparency from sellers when they buy from a brand. They would want to know when their order will be shipped, where it will be delivered, and who will be in charge of it. If a D2C brand lacks an effective delivery tracking system, it may be unable to achieve this degree of visibility with its customers.
The absence of supply chain visibility also makes it hard for logistics managers to monitor on-the-ground operations and take preventive measures if delivery schedules deviate from expectations.
- Managing return orders: D2C returns can be a major issue because they reduce profits, necessitate more warehouse space and workers, and necessitate dealing with erratic logistics.
- Enhanced competition: A natural byproduct of D2C’s lower entry barriers is a slew of brands getting on board. To put it in another way, the pressure is increasing to have a unique brand identity, unique selling point, and exceptional value proposition to stand out from the crowd.
7 winning D2C marketing strategy
1. Make use of customer reviews and testimonials
Word of mouth is extremely powerful for any brand, but D2C is heavily reliant on loyal customers spreading the word. Utilize this power by collecting and sharing reviews and testimonials in your ads, social media, landing pages, product pages, and other relevant places.
Discover customer stories that speak to your differentiators and use feedback to tell the story of the difference you made in their lives.
2. Find your user where they are looking for you
With SEO and PPC ads, you can put your brand in front of your target audience when they are looking for you. You can start by researching the keywords and phrases your audience is using to find what you’re selling.
On-page SEO can help you capitalise on keywords your target market is searching for and ensure your website effectively uses those keywords. Incorporate your keywords into headlines, product descriptions and tags, page titles, and other areas.
Keep your brand at the forefront of your customers’ minds by using retargeting ads that appear when they visit other websites later. After a while, your brand should start to feel familiar, and you may even enter the subconscious minds of your potential customers.
3. Utilise ad placement creativity
You can take the strategy a step further by appearing in those additional places where your target audience will be.
You could use keywords that your competitors are using or keywords that are possibly a bit off-topic but still related to what your target audience is looking for.
When done creatively and intuitively, it is a disruptor strategy that works well for D2C brands.
4. Offer something unique
This is a critical step for direct-to-consumer brands. If you want to sell a product directly to customers, you must first give them a reason to buy.
A lower price or a distinct brand personality may persuade them to choose you over an eCommerce giant, the mall, the pharmacy, or a hypermarket.
However, to gain popularity with a D2C brand and build enough momentum to sustain it over time, you must approach the market in a fundamentally different manner.
For many D2C brands, such as the coffee mentioned above, this may imply a monthly subscription. You can provide the convenience of never forgetting or running out of a required product.
5. Word of mouth and referrals
Customers would be the best marketers as you build your D2C brand. When they are enticed by what you are doing, they can help others become excited as well. Furthermore, they are likely to communicate the USPs of your product or service better than you do, so let them!
Increase the value of your referral programme by rewarding those who refer others to your brand and rewarding those who work hard and bring in a lot of referrals.
Make it simple for your audience by showing them unique URLs that they can share with others. You can also include postcards and small treats in your shipments to assist your customers in spreading the word.
6. Create a Chatbot
Successful direct-to-consumer businesses establish relationships with customers from the beginning. Those relationships begin with first interactions, which you can supplement with a chatbot on your website.
A chatbot enables users to immediately begin “talking” with someone to get their queries answered. Although the initial interactions will be automated, you can and should contact customers who communicate with your chatbot to find out how you can help them further.
Offer your customers a more personalised experience, and you’ll be able to stand out from the corporate crowd.
7. Convert Customers into Product Creators
What do your clients expect from you? Simply inquire!
One of the most important advantages of D2C is that you have direct exposure to your customers. You can interact with them, so use it.
Learn to listen to your customers, both happy and unhappy. They will act as the most effective research and development department.
They will be able to tell you what is working well, what needs improvement, and what other products or services they want to see in the future.
On a concluding note
Consumers enjoy discovering and experimenting with new brands. Marketers can use social media channels to introduce consumers to new products they didn’t know they needed. As a result, social ads and content on social channels are critical for D2C marketing.
