Why D2C

Why D2C

17/04/2021 Written by CommerceCentric

Benefits of D2C

There are many benefits to your brand from embracing the direct-to-consumer model:

  • Direct ownership of the customer relationship.

  • Access to shopper data from e-commerce reporting.

  • Direct ownership of the customer life cycle.

  • Ability to offer customers exclusive products and marketing offers.

  • Increase in brand profitability through removal of retailer costs.

  • Test and range more products.

However, we believe that there are three overriding strategic reasons to go direct-to-consumer that encompass and surpass all other reasons.

It Puts You in Control

No retail channel gives you the total control you have from selling direct-to-consumer. There are no compromises on pricing, marketing, location etc. You control the entire customer experience and can craft the perfect retail showcase for your product. In addition, you own the data from all of the consumer interactions whether that be sales, customer service or marketing. You can learn what your customers like quicker and in more detail to better serve them.

It Gives You More Opportunities

Having your own D2C channel gives you options not just for selling for direct but also in the manner and method of selling. You can try subscription services, try before you buy, payment plans in fact any methodology you wish without the need to convince a retail partner. You can trial new product lines, bundles and offers with no need to worry if they might be altered or broken up. You can even decide to launch in a new country without the need to find local retail partners to work with.

It Gives You More Agility

Direct-to-consumer capabilities improve your business agility and ability to read and react to change. By owning the conversation with your customers, you can understand market trends as they happen and have data to help prove your hypothesis. By building a D2C channel you safeguard your route to market and will never be caught out by the collapse of a key retail partner or other unexpected market force. You also have the perfect environment for testing in a data rich environment of your own.

Qualifying Questions

  • Are your online channels and partners increasing your customer lifetime value?

  • Are you satisfied with the ROI of your online channels and retail partners?

  • Are you getting the right data analytics to support, and understand revenue growth as well as ensuring the right visibility?

  • Do you have adequate control over your brand, the customer experience, and your online demand generation?

  • Do you have a true omni-channel model?

  • Are you reaching the key global markets your brand needs to expand to?

  • Are you comfortable with the costs of that expansion with your current solution?

  • Do you have adequate independence from your IT team to fight for resources and priority?

If you answered NO to any of the above, then it is time to start thinking about going direct-to-consumer.