e-Commerce Revolution with D2C Model

Posted on December 9th, 2020
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e-Commerce Revolution with D2C Model

Retail as a consumer driven sector, is dictated by ever evolving and diversified purchase ideologies and preferences. The emergence of e-commerce transformed the traditional retail landscape and now the D2C (direct-to-customer) revolution is merely the next step in this retail evolution.

As retail players continue to decode customer behaviour and embrace more relevant business models, let us contemplate the assets and hiccups of adopting the D2C concept in this blog.

artly streamlines the process with only two ends – the business and the customer. This groundbreaking idea of reaching the customer directly is the nucleus of the D2C model.

This sounds incredible for the customer but it increases the load on the businesses. Naturally, taking the D2C path means greater responsibilities of warehousing, storing, logistics and delivery, However, this increased sum of work is directly proportional to the savings that businesses will incur.

But it needs to be planned well, strategized and impeccably executed.

So before you decide to incorporate the D2C model, ask yourself this question:

Does my business really need the D2C Model?

With all aspects considered, the switch may not seem entirely feasible and profitable to you.

But understand that a major chunk of customer base is craving for the benefits of efficient D2C services.

It's time to your customers –

A study reveals that 88% of customers are willing to buy directly from the manufacturer if given a choice. This study exhibits that e-commerce shopping directly from the manufacturer is the current uproar amidst consumers.

With technology stepping up its game each day, e-commerce is likely to grow the customer base for every sector.

No doubt this trend is catching up in India with lightning speed. With the pandemic still prevailing, Indians can look forward to a few more months, at least, of armchair shopping. Such Digital Transformation amidst a global pandemic have led to customers taking their initial steps to adopt the D2C selling process.

How will the D2C model help businesses?

It doesn’t take anyone by surprise that this model is expected to rise above all existing ones. But let’s explore its benefits to businesses in a little detail.

Direct Relation With the Customers

Brands are better positioned with customers with a sharper ability to understand and respond. Direct interaction with buyers can help detect any loopholes or weaknesses about actual products or delivery processes.

If the product is not delivered at the estimated time, or if the product is damaged during delivery, the brand is responsible. Customers do not have to rely on retailers, wholesalers via any other touchpoints. A single source of all resolutions creates a stronger bond with customers.

Retain Customer Data

The most evident advantage of the D2C model is direct access to customer insights. D2C brands do not have to struggle for or dig through complicated customer data.

They know who buys their products, when did they buy, which platform they used, and which delivery channel suited them best. Brands learn and improve their products and delivery according to the direct, first hand information available.

Better performance, products, marketing and reach is possible with the D2C model. This is priceless data that D2C brands procure. The fact is that companies cannot get this sort of information with a multi-layered selling process.

Offer Omni-channel

D2C brands can switch to omni-channel retailing when the time is right. This is a multi-channel, singular platform approach to the idea of selling. Customers can purchase through mobile phones, laptops from online stores or brick-and-mortar shops, just as easily. It provides a seamless buying experience for the customer base.

Some of the successful Omni-channel brands in the Indian market include Zivame, Pepperfry, and Van Heusen. Adopting the omni channel idea has worked wonders for them. It allows these brands to cater towards customers and create strong relationships.

Such benefits have assisted brands to achieve benchmarks in the industry.

Marketing Your D2C Business

As mentioned earlier, the foundation of D2C businesses is E-commerce. Hence, like any e-commerce business, a D2C company or brand, needs competitive advantage via aggressive online marketing.

Here are some new age marketing tools to highlight your brand and secure a growing customer base:

Pitch-Perfect Digital Marketing Strategy

A well-researched, timed and implemented digital marketing strategy involves understanding your target customer, defining your messaging and selecting the right tools. Here are the 3 pillar stones of a sound Digital Marketing Plan

1) Engaging Content

Content is still king and creating content that drives people to your products and brand is a tested tool. User-generated pieces such as testimonials, happy customer reviews, tutorials, fact-based snippets and videos are trusted by potential customers and lead them to try out your products.

Relevant, engaging, value-adding and consistent content via organic and paid avenues is the foundation of all online marketing. Regular reviewing of your content strategies and renewing them over time, will keep your brand rolling.

2) Social Media

Digital marketing encircles social media as your potential customers are spending an increasing amount of time on social media platforms, no matter what age! This is where you need to advertise via pay-per-click modes. ROI via social media advertising is considerably higher than than any other advertising mode.

In Retail, Facebook ads get an average of 3.26% conversion rates. Apart from which, there are click-thru-rates and lead generation that is pushed by social media presence.

To master social media, understand each platform and utilise it for what it's made. This diversified learning and mending strategies will yield desired results.

3) SEO (Search Engine Optimization)

Search Engine Optimized website and online content assists to rank higher, attract customers and boost conversion.

If your content is not optimized, it will not work.

The process of optimization is making your content attractive to search engines and easy for them to enable your customers to find you online. How is this done? With keywords, value content, relevant formatting, meta descriptions, well structured content pieces with bullets and subheaders and such.

SEO is entirely technical and is therefore, completely reliable, predictable and quantifiable.

Lastly, with digital transformation at its peak and retail habits ever evolving, we foresee a major portion of manufacturers turning to the D2C model and directly selling to their customers.

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Posted on:
December 9th, 2020