The 2020s Will Be the Decade of 'Direct to Consumer'
While almost 2.6% of USA retail will be D2C this year ($17.75bn – IAB/eMarketer), over 65% of us also think that its important brands are committed to making society better (Kantar), so more than ever companies need to take the opportunity to interact with their customers in a positive and direct manner.
A notable side effect of COVID-19 is that it has accelerated the need for businesses of all types to have better direct relationships with their customers.
To continue our series on ‘Marketing During the Pandemic’ we’ve collated what our teams and customers see as the most important elements of being a direct to customer operation.
Important Elements of Being a Direct Operation
8. Create Better Pricing
If you own the strategy, choose the tech, optimize the supply chain and own the data you will probably create better margins. This is as true in B2B as it is in B2C. If you are a brand in-housing or a commercial publisher, own the plan, in-house the thinking and outsource the services. If better margins mean better prices for customers, you will likely increase market share.
10. Be Set-Up to Act Fast
Being more direct brings you closer to customers. Those customers will expect instant response. The more direct you go, the faster you will need to operate.
One of the key elements of creating a direct to consumer strategy is ensuring that you have the bandwidth to react and respond as quickly as possible.
Before you being to strategize how you can integrate these elements into your business strategy, there are a few things to consider.
Questions to Ask Yourself:
- Do you know where the margin lies across your value chain?
- Are you clear on where strategy ends and exceution begins?
- Do you know what you need to own in-house and when to use a partner?
- Do you own your technology relationships?
- Do you have the right data strategies and capabilities in place?
- Can you work to a model that runs off lifetime value (LTV) rather than short-term CPA?