Five reasons why every brand should have a D2C strategy
In recent years, many lessons have been learned from direct sales pioneers such as Made.com and Emma. Fabian Eckerl from Bazaarvoice knows about the advantages of this form of distribution and advises brands and manufacturers to develop their own D2C strategy sooner rather than later.
Around ten years ago, direct-to-consumer was considered a completely new sales concept. D2C brands clearly distinguished themselves from classic retail brands. While the latter relied on retailers and wholesalers, D2C pioneers such as Allbirds and Made.com targeted end customers directly.
Today, brands no longer have to decide on a distribution channel, but can offer their products via any available channel. And finally, the direct exchange with customers, the knowledge of their shopping habits and the expectations of their own brand are irreplaceable. It is therefore high time that brands and manufacturers develop their own D2C strategy.
Active exchange with the target group
D2C brands can communicate with customers directly. Those who rely on traditional sales channels leave this exchange to their retail partners. For sustainable growth, however, an active brand community is at least as important as a good product. According to a Survey of the social media service provider Sprout Social, 64 percent of consumers want to interact directly with brands. Brands need their own platform for this. This allows them to accompany the entire customer experience, from discovering a product to shipping it - and at the same time share individual stories and messages with their target groups.
More flexibility and touchpoints
A D2C strategy basically gives brands and companies more flexibility and reach. Many D2C brands are Internet pure players. But more and more are venturing into physical retail. The mattress brand Emma, for example, started as a pure D2C business model and is now available in over 2,000 stores in Germany.
Conversely, manufacturers who sell their products primarily through retailers should consider their own online store solution. This additional touchpoint not only increases awareness, it also has a positive effect on the consideration of potential buyers in the customer journey. Because one Bazaarvoice survey According to the survey, 61 percent prefer to discover new products online.
The collection of customer data
Pure D2C brands and companies with their own online store have a decisive advantage: first-party data. With a D2C offering, a lot of valuable data can be obtained and analyzed. From contact forms and surveys to surfing behavior on the company's own website and purchasing history to consumers' social media activities. This treasure trove of data can help to bind customers to the company's own brand, improve products, and optimize the marketing strategy.
Simply test new products
With their own D2C offering, manufacturers and companies can quickly adapt to new wishes and habits of the buying public. If, for example, a new product is to be launched or tested, this can be done comparatively easily via the company's own sales channels - and in a way that conserves resources. The products can initially only be offered in small numbers in order to capture an initial reaction. The direct feedback can in turn be used to optimize the product accordingly. In addition, it is possible to offer personalized products and offers, free product samples, and subscriptions via D2C channels.
Find and use UGC
Own online stores and social media channels are optimal platforms to use user-generated content (UGC). According to a survey by Bazaarvoice. half of consumers expect brands and manufacturers to share photos, videos and reviews of customers on their own channels. In the social networks, UGC can appear via repost on one's own profiles and be made "shopable" with product tags. On their own website, testimonials and product images can give consumers the confidence they need to buy products.
* Fabian Eckerl is Head of Sales Central Europe at Bazaarvoice.
