The internet has created limitless opportunities for brands to directly reach end consumers without using third-party retailers. The rise of e-commerce and the proliferation of social media use has seen brands adopting a direct-to-consumer (D2C) marketing approach, which involves sellers promoting their products straight to the consumer without a middleman. This blog will look at how brands can approach direct-to-consumer marketing to fully reap the benefits.

Online presence matters

Direct-to-consumer marketing thrives on deepening the connection between consumers and brands. D2C brands must have an online presence to get started, such as building a website, having a social media presence and investing in paid search. Before consumers commit to buying, they want to be informed about what a brand stands for.

A good example are Millennials, whom according to Forbes magazine are taking into account the values of a company before they make a purchase. This makes it paramount for brands to pay attention to how they present their business online. Online brand reputation becomes key for success, as it can have an influence on an increase or decrease in sales.

Collecting consumer data for actionable insights

One of the advantages of direct-to-consumer marketing is that the direct line of communication with customers enables brands to build a close relationship with them; ultimately increasing customer loyalty. Connecting with consumers via digital platforms such as online shopping platforms and social media, also allows brands to gather real-time data on their purchasing behaviours which can be turned into actionable business insights. With consumers expecting a better customer experience than they previously had, this data can be used to deliver personalised products.

Data analytics offers an opportunity for sellers to understand consumers’ evolving product expectations and empowers them to stay abreast of the latest trends in the market. All of this can be used to tailor products that meet customer demands. According to Sprout, when people feel connected to a brand, they are likely to spend money on its product and this has a financial impact on brands competing for consumers.

Consumers demanding better CX in the experience economy

In the experience economy, consumers are no longer just making a purchase and walking away. Instead, they expect an enhanced end-to-end customer experience as they interact with brands. Customer experience has become the differentiator as technology-savvy consumers are exposed to a lot of choices on the internet. Previously companies would sell their products through retail distributors and they had little or no control on whether the customer was satisfied with their products or not. However, with the direct-to-consumer marketing model, companies can control their message to the consumer and their brand experience.

Lower operational costs

One of the benefits of adopting direct-to-consumer marketing is that brands can lower operational costs by cutting out the middleman. Previously they would turn to traditional channels such as TV, radio and print media to reach consumers. However, technology has seen brands setting up e-commerce platforms that allows consumers to make direct purchases. By getting products faster to the market, businesses can save costs; ultimately reducing the costs of their products. With brands being able to keep their offerings low, this means that customers can purchase products at an affordable price. Unlike going through the traditional retail distributors, there is an additional luxury of offering trials to consumers, and this permits the brand to improve the quality of their product as consumers give feedback on their expectations.

Growing faster with limitless opportunities

In direct-to-consumer marketing, brands are not limited by the constraints of their retail distributors or their budget to spend on traditional marketing channels. With an e-commerce platform, they can market their products to consumers across the globe. This gives businesses a chance to grow faster instead of being limited by their geographical location. In the traditional retail space, there are different products competing for customers’ attention, which makes it difficult for new brands to break into the market. However, with a direct to consumer marketing model, brands become the star of the show as they are not competing with different brands for the same space.

Final thoughts

There is no doubt that the internet has created great opportunities for companies to market their products to consumers in seamless and efficient ways. It has made it much easier for newcomers to enter the market without the constraints of having to find distributors. This also improves customer relations, as brands can make meaningful connections with customers through digital platforms; ultimately creating personalized products. As e-commerce continues to grow, direct- to-consumer marketing will be adopted by many brands looking to engage consumers.

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