D2C companies are those that remove the middleman and sell directly to customers.
This seems obvious in many ways. This allows you to sell directly to your customers and eliminates any markup fees that may be required by wholesalers or other sales channels. You don't need to charge markup fees for these additional costs so that you can keep your prices low for customers.
Marketing is a problem. Wholesale stores can have customer loyalty, brand recognition and convenient locations.
D2C is about finding those customers and convincing them to purchase directly from you.
Although it can be difficult, it is possible to make it worthwhile.
Examples D2C Brands
The world we live in is full of disruptors. Many of the most successful D2C brands have a revolutionary or rebellious angle to their product and/or service.
1. Dollar Shave Club
Dollar Shave Club is the best D2C brand because they often sell out quickly. You don't often find razors for shaving on the internet.
Dollar Shave Club discovered a way to direct sell, which also helps customers avoid the inevitable: Not adding it to their shopping lists or realizing that they don't need it until too late.
2. Warby Parker
Warby Parker isn’t the first D2C company to offer eyeglasses, but they have made it fashionable.
After appointments, eyeglasses can often be sold wholesale at doctors' offices. Eyeglass sellers have the ability to connect with these patients and provide them with the most current styles.
Consumers face problems when they don't find a style that suits them or when all options are too expensive. Some may feel pressured into buying a pair to fit their new prescription.
Warby Parker used a D2C approach in order to introduce some stylish brands to customers and allow them to try them out. Customers don't feel pressured to choose a product.
Warby Parker customers have the ability to use an app to check how they look in a variety of “rental” glasses. They can also take some of the glasses for a test drive and then buy the ones they love.
Warby Parker is able to offer competitive prices because they sell directly and avoid markups at the doctor’s office.
3. Subscription to Peet's Coffee
We often grab our coffee from the grocery store, sometimes because we are running out. Unless we're talking about a coffee shop that makes their own coffee, we don't think of buying directly from the coffeemaker often.
These concepts were brought together by Peet's coffee subscription service. The result is that the same products you'd normally find in the store now come with a monthly subscription.
Nearly all of the coffee brands that offer a D2C subscription option, in addition to their retail locations, allow customers to feel closer the the headquarters of the coffee producers. This means that the brand is most well-known in a specific area of the country and they market their subscriptions only to people who have moved away.
7 Strategies to D2C Brands
D2C is, by definition, a way to reach your target audience. Before you can reach them you must first know their names. You can learn more about them to increase your chances of reaching them with your message and converting them to your brand.
1. Review and testimonials are a great resource!
While word of mouth is powerful for any brand and every business, D2C is heavily dependent on the loyalty of customers who spread the word. This power can be leveraged by gathering testimonials and reviews that you share on your ads, social media and landing pages, product pages, or other relevant places.
Find stories from customers that highlight your key differences and use feedback to tell the story about the impact that you had on their lives. What was unique about the product you sold? What was the secret to finally providing the solution they were looking for?
These testimonials and reviews sound like talking to a friend. They help potential customers feel heard.
2. Be there for them when they're looking for you
Search engine optimization (SEO) and pay-per-click (PPC) ads can help you position your brand in front of your target audience wherever they are looking for you. You can find out the keywords and phrases they use in order to find what you are selling by doing thorough research.
On-page SEO is the first step. This involves identifying keywords that your target market is searching for and making sure your website effectively uses these keywords. These keywords can be used in headlines, product descriptions, tags, page titles and many other places.
Next, create ads that use those keywords. These keywords can be placed on Google to appear when people search. Your ads should clearly show the solution you offer.
Retargeting ads will allow you to stay in the minds of your customers by showing up on their screens when they scroll through other websites. Your brand will become familiar over time, and you might be able to enter the subconscious of your potential customers.
3. Use Ad Placement to Get Creative
By appearing in other places that you know your target audience, you can elevate the approach. It is possible to use keywords that your competitors are using, or keywords that are slightly off-topic, but still relevant to the keywords your target audience searches for. This is a disruptive approach that can be very successful for D2C brands if done creatively and intuitively.
This is not D2C but you can see it a lot in software and technology brands. Here's one example.
To make this work, you need to get to know your audience. What do they want? What is their sense of humor? What is it that makes them so unique?
4. Offer something different
This is an important step for D2C companies. You must give clients a reason to purchase your product if you want to direct sell it to them.
Sometimes, a lower price or a distinct brand personality can make them prefer you to Amazon, Target, or the drugstore.
To gain traction and sustain momentum in D2C, however, you must approach the market fundamentally differently.
Many D2C brands may offer a monthly subscription. This could be the coffee mentioned above. This allows you to have the convenience of never forgetting about or running out of a product.
Your customers could benefit from a different approach. How are products in your industry packaged, sold and delivered? What can you do to make it better? What can you do to make the experience better?
5. Referrals and Word of mouth
Your customers will be your greatest marketers as you build your D2C brand. They will help other people get excited if they are passionate about what you do. They can also talk about your product and service better than you, so let's talk!
You can boost your referral program by giving incentives to people who refer others. Even better, kickbacks for those who do the hard work and bring in many referrals.
Your audience will find it easier to share unique URLs with others. To help customers spread the word, you can include postcards or small treats in your shipments.
D2C companies that are successful build relationships with customers right from the beginning. These relationships begin with the first interaction. You can add a chatbot on your website to facilitate those first interactions.
Chatbots allow people to instantly “talk” to someone and get their questions answered. Even though these initial interactions are automated, customers who interact with chatbots can still talk to you and ask questions.
Your brand will stand out from the rest by adding humanity and humanity.
7. Turn customers into product developers
What do your customers expect from you? Ask!
One of the greatest benefits of D2C, is your ability to communicate with your customers. If you can communicate with them then so can they.
Ask questions and listen. They will be your most valuable research and development department.
They will tell you what is working well, what isn't, and what they want to improve.
This not only helps you to bring products to market that people like, but also creates trust with your customers. People want to be heard and your brand can make a difference by listening.
Additional Resources to New D2C Brands
You may be considering starting a D2C company or offering products directly-to-consumers. Here are some tips and tricks to help you succeed.
Fundera by NerdWallet: D2C and Millennials Article
- There may be some overlap between the D2C market and the millennial market. Fundera provides more information about how to make this connection.
- Podcast Collection D2C
This list contains podcast episodes and topics that may be of interest to you if podcast learning is your preferred method.
- Shippo webinar on D2C and Loyal Customer
Building a loyal customer base, as we have discussed, is not only a requirement of the D2C approach but also a benefit of setting up your brand in this manner. Shippo's team will explain how to use different tools and resources in order to win customers.
Direct To Consumer (D2C), Frequently Asked Questions
What does D2C in retail mean?
D2C is “direct to consumer”, and it refers to the management of inventory and direct sales to customers.
Amazon is a D2C company.
D2C companies can sell their own products directly to customers. Amazon sells a few branded products but the majority of items are owned and sold by companies that use Amazon as a selling platform.
Which brands will be D2C?
This method has been tried by brands from all industries to interact with customers.
Are you able to make a lot with D2C companies and can you do so by making a lot of money?
D2C success depends on how well you connect with your target audience. Many companies are seeing great success with this trend.
7 Strategies to D2C Companies Conclusion
D2C companies are gaining popularity because e-commerce marketing technology allows you to build relationships with your audience and sell products in-house.
Direct to consumer is a great option if you are looking to break through the dropshipping or wholesale model, or just to experiment with new ways to do business. Direct to consumer can help you build a stronger relationship with your customers and open up new possibilities.
Do you want to be part of a D2C sales strategy?
By: Neil Patel
Title: The 7 Best Strategies for D2C Brands
Sourced From: neilpatel.com/blog/d2c/
Published Date: Wed, 06 Oct 2021 18:00:00 +0000
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