Business Lessons From & For Direct to Consumer Brands

Direct to consumer brands, also known as D2C brands, have seen rapid growth in the last 12 months. 

A D2C business produces its products in its own facility, as well as distributing from its own channels. These channels may be an e-commerce platform, social media-based business, and even retail stores. Products are sold both online and in branded retail stores.

A huge contributing factor to the success of D2C brands is that they seamlessly fit into today's digital world. They are built to be digital from the ground up, capitalizing on the newest technologies and social media networks. Digital brands have complete ownership of the entire customer journey and experience. This allows them to pay close attention to their customers' needs and behaviors. Overall the customer experience outshines that of traditional retail brands.

Another advantage is that they have full access to their customer data and feedback, the communication channels are smaller and customers are easily accessible to communicate with. They are able to create directly for the customer, based on their own personal feedback. Measuring and learning from customer data enables D2C brands to provide greater value for buyers, ultimately growing their base of loyal consumers.

What have D2C brands learned? Let's take a look at what makes them so successful.

The customer experience is entirely personalized

Having full control of the customer journey allows brands to customize the whole experience. They can tailor their marketing and they know exactly what their consumers need and desire. From personalized marketing, customer-centric websites, and seamless product delivery, there is more ease when you know exactly what people want.

Increased digital functionality, including the use of social media to sell products, means that D2C brands can have product-focused conversations with customers directly. There is no middle man. Customer service can be seamless and easy. Instagram even has a shopping feature allowing people to buy whilst scrolling. Selling products online has never been easier. 

Communicating with customers directly in this personal way leverages the emotional element of buying. Consumers feel like they get to be part of something, a community when purchasing a product. Brands are becoming more inclusive and diverse because they are listening to what people have to say, this increases their likeability and keeps customers loyal. Producing a diverse range of branded visuals, or repurposing user-generated content, can be a powerful way for brands to recognize the communities that they want to connect with and sell to.

Customers are seeking, more than ever, brands that align with their personal values and views.

D2C brands are led by customer feedback and reviews

Deloitte ran a study that stated that up to 81% of consumers read reviews before making a purchase. Customer reviews are essentially free marketing for brands! 

It’s never been easier to leave feedback for products. Likes, shares, and comments on Instagram speak for themselves. 

Focus on community building 

As previously mentioned, buyers want to feel part of something when they purchase a product. The focus is no longer on simply making money, it’s all about building a tribe of loyal customers who essentially help market your business for you simply by talking about it to others. Sharing behind-the-scenes footage online, running polls, and engaging in Q&As allow consumers to feel like they are directly contributing to a brand.

Having radical transparency about your business helps to build trust and likeability, people love to feel like they can relate to something. Gone are the days of perfect product marketing and hard sales. It’s all about humans connecting with humans. This type of relationship makes the customer feel valued and respected.

Looking at purchase intent in 2021 found that 31% of Americans are more likely to buy from brands that demonstrate support for social and environmental justice, such as sustainability, the Black Lives Matter Movement, and LGBTQ+. 

Final Lessons

Essentially the success of D2C brands is due to their close relationship with their consumers. Whilst you don’t need to be an expert in social media and content creation, it’s worth hiring someone who is. Having a flourishing community of loyal customers comes with a bustling social media feed full of diverse content on both your website and media channels.

Learn more about the importance of having a content marketing strategy in place

Invite customers in to co-create with the brand itself 

Sharing images, and video marketing, of consumers enjoying the product or service, is the most successful way to market in the digital space. Inviting bloggers, influencers, and brand ambassadors in to share your product increases your brand impact. This is important though that these people stay relatable to your target audience! Not everyone needs to be using your brands, stay focused on who you try to target first! 

This is why knowing your target audience is really crucial here. Invite people in to share their feedback and create your marketing alongside your customers, include them in it. Their videos, photos, and reviews become the focus of your marketing campaigns. This also adds to the community-building aspect of your brand.

You might also enjoy reading: “ Why entrepreneurs urgently need personal branding”

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