Top 4 D2C Strategies to Adopt in 2021

Posted on January 26th, 2021
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Top 4 D2C Strategies to Adopt in 2021

Digitization is a powerful tool that has transformed the way many industries are operating today. The trend has given a fruitful avenue for new and established D2C brands to flourish. Legacy businesses across various sectors like fitness, furniture, glasses, groceries, and makeup are competing to grab the biggest piece of the pie.

D2C brands already have an upper hand when it comes to customer engagement as they have separated themselves from middlemen like department stores, online marketplaces, and supermarkets. The absence of third-party retail platforms enables the D2C brands to keep a firm hold on how they operate and lets them engage with the customers with great effect.

Even in the global pandemic, the control has allowed many D2C brands to prosper. Contrastingly, traditional packaged goods retailers have struggled with mismanaged supply chains and the rapidly evolving customer needs during the lockdown. D2C brands, on the other hand, have swiftly revamped their strategies to provide better customer support in times of need.

Although the path might seem smooth for D2C brands, some uncertainty still lies ahead. With changing customer patterns, higher unemployment, decreasing consumer spending, and a densely populated digital landscape, it is advisable for brands in every sector to get armed with solutions to face such challenges.

Let’s take a look at some strategies that might come in handy for D2C brands in 2021 and beyond.

  1. Leverage an agile approach In the world of D2C, being highly adaptable is a brilliant quality. The industry has witnessed frequently changing customer buying patterns during the COVID-19 pandemic. When the quarantine began in March, order volumes significantly increased in sectors like food and beverages, home and gardening, crafts, pet supplies, and gifts. To match with these new increased demands, several D2C brands quickly adjusted their offerings.

While being digital helps D2C brands in positioning themselves well and capitalize on this accelerated shift, it is not enough. D2C brands must continuously refresh and evolve their online offerings to continue growing.

For instance, a sustainable fruit and vegetable delivery brand ODDBOX, opened a new marketing channel to support the higher order volumes. The brand implemented a referral program and has incentivized the strategy intelligently. Through this strategy, this brand has cost-effectively acquired thousands of high-value customers and driven significant revenue.

Fast adaptation cannot ensure immediate profits. In the early 2020s, UK-based brand Bloom & Wild donated 15% of their sales to the National Emergencies Trust Coronavirus Appeal, offering key support workers with a 40% discount on flowers. Social actions like these also help in building a powerful brand image that results in long-term revenue.

  1. Focus on building meaningful relationships with customers

Advertising is an age-old tactic but it no longer equates to effective marketing. Today, consumers are looking for brands that speak to their personality and are willing to provide better customer support and satisfaction. Rather than spending massive funds on advertising campaigns and email blasts, D2C brands have nurtured positive connections with their customers to instill deep brand loyalty, while actively promoting their purpose and products.

A brand’s social media page also plays a vital role and highlights the power of effective customer engagement. A good example of effective customer engagement through social media is Snug Sofa’s strategy. The brand has now reached thousands of highly-engaged followers on social media who regularly interact with posts and feel a sense of trust within the products and the services.

During the pandemic, it has been observed that customers were spending more time online, while some of them were deterring from the brands that acted inappropriately. Such ill-suited behavior included not having an active social media page, unattended customer helplines, and prolonged restrictions on shipping and delivery. This shows us the importance of meaningful customer engagement and the fact that it could make or break a brand.

  1. Making more data-driven decisions In the eCommerce landscape, D2C brands are positioned in such a way that allows them to gather a significant amount of customer data in real-time. When brands want to scale their operations, data holds a key to unlocking meaningful insights into the rapidly growing customer community.

The dynamic customer patterns have compelled D2C brands to monitor the buying patterns and customer attitude continuously, which allows them to experiment and optimize their offerings as needed. A clear plan mapped out to obtain customer data and identifying business priorities, offers data to make decisions that can help brands prioritize their offerings and operations effectively.

Data-driven insights also enable brands to effectively measure their performance and the impact they have on audiences. For instance, if repeated purchasing is a priority, brands can try segmenting their customers based on order numbers and serving highly targeted customer content that grabs their attention.

Drilling out specific numbers from the data will help brands figure out what is working and what is not working in their operations to help them provide genuine and profitable offerings. Focusing on the numbers is important, but maintaining a customer-centric approach with an upbeat attitude is also imperative.

  1. Planning for long term gains

Numerous D2C brands experienced a sudden boom in their sales. But after a point, their numbers started declining as they were focusing merely on monthly targets. To continue sustainably scaling the operations and offerings, brands should plan ahead and think long term.

Activities that nurture healthy relationships with customers, reflect consistency and instill a strong brand presence and identity in the long run. Additionally, focusing on old customers and retargeting them will encourage them to spread the word about the brand.

Social initiatives like charity, donations, online engagement activities, and social media interactions may not deliver the expected profits immediately, but they are essential for building a long-lasting relationship with the customer community and ensure long-term revenues.

Wrapping Up

Many factors set D2C brands apart from established legacy retailers. But it is essential for D2C brands to foster a loyal customer community, maintaining transparency around operations and offerings, and adapting to the ever-changing market landscape to stay ahead of the curve.

There's no denying the fact that 2021 is going to be a challenging year for numerous brands in the eCommerce sector. However, refreshing strategies and a consumer-centric approach will definitely help these brands to propel their growth to new heights.

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Posted on:
January 26th, 2021