D2C Retail: A Simple And Powerful Customer Experience

Posted on February 9th, 2021
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D2C Retail: A Simple And Powerful Customer Experience

The rise in online retail and e-commerce has accelerated the direct-to-consumer (D2C) model which prioritizes speed, convenience, and real-time service. D2C is becoming a quick and popular way for brands to enter the market and compete for consumer interest. This model (D2C) cuts out the need for, and reliance on, a middleman.


D2C businesses take care of the manufacturing, marketing, and distribution of their products. It’s a self reliant structure that offers complete control over customer preferences via data, to customize, personalize and elevate their CX.


What Is D2C Retail?


D2C retailers are the ones that sell goods to consumers without any middleman. This model eliminates the need for distributors and other intervening steps between brands and their consumers. It entails management of the entire process including manufacturing, storing, marketing, selling, shipping and after sales service.


A sound e-commerce strategy that enables a smooth customer journey through incentivized purchasing, secure payment gateway, multiple touch points, adequate fulfillment or easy return policies is key for D2C brands. Successful D2C retail players have been known to bolster their web presence and spruce up their systems to offer enjoyable and hassle-free online shopping experiences to their buyers.


Why are brands choosing to connect directly to consumers?


Brands selling via online marketplaces lack complete control over their retail journeys and execution. Even if their strategies contain carefully crafted supplier agreements, detailed parameters for in-store or online product displays or well devised online marketing plans, the results often fail to reflect their expectations.


This is the primary aspect that’s been leading brands to adopt the D2C model. Lack of control on the customer journey directly affects brands and their CX. D2C is a proven way to fill the gap between brands and their customers, to offer and maintain a superior CX.


Currently, there is a complex issue related to attaining the ‘preferred seller’ status on the major online marketplaces. Due to the massive number of sellers in every retail category, local brands are finding it difficult to capture their spot in the sun, even if they are listed on Amazon or Flipkart. This is a more recent scenario that’s making brands consider the D2C route.


Why does D2C work?


Authenticity, ease and better price points have led to consumers buying directly from sellers. Added to which, D2C brands are offering socially responsible, seamless buying experiences and personalised service to their customers.


Social media is playing a major role in impacting purchase decisions for the D2C customers, Hence, retailers are targeting their audience through immersive social media advertising, social conversations, video content and the like.


Benefits of a D2C retail business model


1. Cuts out the middleman


The traditional selling and retail method lead to restrictions in innovation, pricing, product design or features, inventory and more. This was due to the large amounts being paid to marketplaces or third party companies. Selling products directly to customers, without the involvement of a third party or middleman gives freedom to offer competitive price points, offers, deals and discounts. This lack of flexibility is a major deterrent in creating heightened customer experiences and expanding customer base.


2. More control


A D2C model allows management of how your customer interacts with your brand, giving the seller access to customer data and deeper buyer insights. This information goes a long way to ensure a positive customer experience that is tailored to buyer needs. It can dictate how you would like your brand to interact with your end customer, in terms of flavour, mode and frequency.


3. Build strong customer relationships


The D2C model enables brands to give targeted consumers a personalised digital shopping experience and journey that extends into positive after sales customer service. This creates a transparent two way interaction between the customer and brand with regard to their feedback, issues or grievances. D2C brands are in a better position to rectify problems quickly, due to their ability to control every aspect of the customer journey.


4. Access to data


One of the biggest advantages of D2C marketing is the sheer amount of customer data that is available to these brands. Consumer data and feedback is key to improving every aspect of any business. It also allows brands to create accurate buyer personas to be able to build on personalization as a vital market differentiator. D2C brands are then able to predict buying trends, cater to changing demands and create legacy brands that enjoy long term goodwill.


5. Sell to anyone, anywhere


sing a D2C model means customers can shop from your brand in any location you ship your products to. D2C means much greater flexibility in pricing, promotions, product line, and marketing, giving you the tools to interact directly with customers and dominate both digital and physical retail environments.


How can D2C Retail offer a simple and powerful customer experience?


1. By providing better understanding of customers


D2C enables direct selling through digital channels creating opportunities to measure every aspect of the user journey. The invaluable data about consumer attitudes and shopping habits helps companies build their own audiences and create engaging experiences that encourage consumers to maintain a relationship with the company. This can help brands understand and improve customer experiences.


2. Better Customer Experience


The rise of mobile, social, and cloud technologies are driving businesses by capturing consumer behavior, attitudes and expectations. Brands who deliver seamless experiences across all channels and devices are the ones that succeed in today’s times.


Consumers feel connected to such brands leading to greater brand loyalty.


3. Give consumers what they want


A D2C brand is able to meet customer expectations with better products, personalized content and exceptional customer service.Plus, selling directly to the consumer makes it easier to meet customer demands and build stronger customer relationships in the highly competitive retail market


In these ways, D2C brands can build relationships with their audiences by offering more streamlined shopping experiences that spur brand loyalty, encourage repeat business and offer unparalleled CX.

Category:
Best Practices

Posted on:
February 9th, 2021