With the increasing demand for e-commerce, businesses have begun to rethink their strategy.
Many consumers are buying their items online instead of in person. The most significant factor is engaging with the brand personally instead of interacting with the cashier behind the register. According to invesp.com, almost half of US consumers will buy products from direct-to-consumer ages 13 and above. The movement of brands switching from B2B to DTC will have a lot to consider. Here are 6 reasons why your business should change to DTC.
Low Expenses– When it comes to creating a new DTC business, it can be cost-effective initially. There isn’t a need to pay for retail space, a manufacturer, wholesale, or distributor. A new owner in a DTC model will likely pay for marketing tools, a web domain, and online shopping service platforms like Shopify or WooCommerce. This will become a starting point until the need to order more inventory, hire additional staff, and find a qualified supplier with available storage capacity becomes necessary.
Engagement– The best part about this strategy is the engagement. Customers who buy their products on a DTC platform feel connected. Consumers like to feel included with a retailer’s brand. As stated from invesp.com, more than 50% of consumers will go directly to the brand site rather than the retailer site because they feel there is more information and guides to help them. An online brand presence can make consumers feel reassured about their purchasing decision.
Personalization– The positive balance of this formula is personalization. A DTC brand will show its customers how much they care by offering a personal incentive. This incentive could be a discount, a promo code, or a sale. When a business offers a trial, they allow their customer to test it before buying it. A customer can communicate what they are looking for, and a DTC business can customize their order based on their preferences.
Customer relationships– A happy customer can make any business grow tremendously. When customers feel appreciated for their business, it can show through their brand. DTC models can connect with their customers through live chats and customized email messages. They can also post testimonials to prove their authenticity and credibility to their clients.
Marketing– The creative side of a DTC business comes from marketing. They are known for using influencer marketing to promote their company. Influencer marketing is used to hire someone of higher status on social media to market your brand to their followers. The idea of creating your campaigns, social media posts, and advertising, can lead to massive amounts of imagination from a marketing perspective.
Data – The use of data can help a business grow through its data. A DTC business can collect their data to determine how they should stock inventory, define their target audience and test how successful a product is.
When it comes to a business change, it can be stressful. Switching from B2B to DTC can provide an accomplished perspective. As brands start to transition to a different identity, they will never be behind in the ongoing trend of the new DTC market.
