D2C has become a buzzword since late 2021 as brands have been increasingly taking their businesses online in the event of the pandemic that boosted this process at a never expected pace.
When the brands get enough traction in the marketplace, they need to serve their customers exclusively and treat them special to stand out from the Ecommerce crowd to get established as a brand.
To do so, going direct to consumer(D2C) is the only way to project as a brand on its own.
There are 7 more reasons to go direct to consumers, and let us see how crucial, beneficial and profitable for brands.
1. Boost brand visibility
Your brand might be making good numbers in sales in the marketplace whereas yours will be just another brand there. Your products might be performing well in marketplaces. But your brand might not.
Since the customers only see that as a product purchased from a marketplace, and not from a brand unless yours is an ultra-popular brand outside the marketplace.
This might be okay for the revenue. But not for brands that want to take the game to the next level. By becoming a direct to consumer (D2C), you will be serving your customers directly, and as a brand, you’ll come to their mind when they come across your product.
2. Cutting down marketplace commission
Marketplaces are indeed the go-to platforms for brands that are walking their baby steps. Your product could reach high within their platform. But, that comes with a cost in the form of the marketplace commission. It varies for each marketplace based on the category your product falls under.
When the sale goes on, you’ll have to pay a significant part of the revenue as commission which no business owner would be fond of. However, when you go direct to the customer, this commission is cut off.
3. Direct ownership of customer life cycle
By going direct to customers, you take the sole ownership and responsibility of your customers' data including their position in the sales flow. For brands, customer data like this are jewel as this data can be used for hyper-targeting your customers based on their status in the sales process.
The marketplaces would not provide enough customer data even though of customers who brought your brand’s products.
4. Build customer relationship
With the acquired customer data by going direct to the customer, you can treat customers as a royal by communicating with your customers effectively based on their position in the sales process for sales nurturing, providing extended customer support for buying your products, and even receiving feedback to your product.
When it comes to D2C brands, every customer's information is important. No customers can be left behind. Good customer relationships might come in handy when you focus on retention.
5. Exclusive offers for select customers
Once you've become direct to customer brand, you will get your customers’ data which can be used to announce exclusive offers and loyalty points for the customers. This is partially connected with maintaining customer relationships.
With no commissions to pay, you can try and learn to price your products better, and understand your niche market better by giving offers for certain customer segments.
6. Test and introduce new products
When you already have a good relationship with your customers, you can even ask your most loyal customers to try a new product you are about to launch for feedback by providing free samples.
This makes the customers more loyal to your brand. Also, they are the niche you have picked with your product(s). So, their feedback about the new products needs to be considered before officially launching that product into the market.
7. Ease of creating an omnichannel experience
Searching for a brand in all possible mediums has even become a habit for particular people. Imagine if your customers ask a question on social media, and it’s always not to ask them to contact you through the official link.
This plays a major role in Customer relationship management. Even if you decided to open a brick and mortar store that compliments your d2c commerce website, that is possible too with your customers' data to cater to an experience they would prefer.
Data can only be useful. For businesses that have gone direct to customers, more than revenue, data is a treasure - the real deal that could make a breakthrough in their sales and when they try to scale.