How To Initiate a Direct-To-Consumer Selling Strategy
When it comes to reducing the amount of effort it takes for customers to complete a purchase, direct-to-consumer selling strategies can serve as a vital tool. By cutting out the wholesaler middle-man, brands are setting themselves up to better understand what their customers are looking for within the sales interaction, therefore helping to establish better and longer customer relationships. While every direct-to-consumer program will not grant a brand guaranteed success in their industry, when properly optimized and implemented, this strategy can be a foundational pillar of an overall Customer Experience platform.
One reason that major retail brands are being forced into the direct-to-consumer world is the slew of DTC-only companies becoming available on the web. Often coming in the shape of pre-packaged or even mystery boxes, these brands have officially become disruptors throughout industries like groceries, footwear, shaving and many more retail opportunities. In fact, almost 40% of all manufacturers will have implemented some form of DTC strategy by the end of the year. Gillette is one common example of a brand forced into DTC practices because of online brands like Dollar Shave Club and Harry’s. While it is never great to be cornered into something, this example shows the value that a DTC strategy can bring to both brands and consumers.
Another industry that is utilizing direct communication with customers is hospitality. These brands commonly use their mobile application to implement rewards programs and other opportunities meant to provide added-value to the customer and convince them to return to your brand. In fact, 25% of Hilton’s most loyal guests interact with the brand through these direct channels. While the hospitality industry is service-based, these digital DTC strategies can build on top of the great service provided by your employees by offering added incentives and other ways to encourage further customer engagement.
The reason that so many more brands are utilizing this methodology is the increase of digital technology, and its impact on communication. In the past, the only way that customers could learn about a brand is by visiting a store or reading some sort of third-party review. Now, customers can learn about as many brands as they choose all without leaving their couch. As a result, it is important that brands possess the ability to provide personalized digital engagement practices, to help differentiate your brand from the crowd. It is reported that 60% of marketers do not feel as though they are effectively delivering this value, meaning that if your brand can figure out how to achieve this level of communication, it is setting itself to immediately become an industry leader.
DTC sales strategies are growing in strength and numbers, because customers are now the more powerful member of the business-to-consumer relationship. Brands must now prove to customers why they should be the ones to purchase from, and DTC is a surefire way to relay this message of proof. Get ahead of the competition by initializing a direct-to-consumer strategy in your sales program.
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