Is direct-to-consumer (DTC) for everyone?

 
 

The big consumer shift to online channels, during and after pandemic, pushed many brands to invest and establish a direct e-commerce relationship with their customers. I have summarized here what I think are some key areas to be considered when going DTC. Let me know your thoughts! 💭
 
1 - 💰 MONEY NEVER SLEEPS
2 - 🏀 “TALENT WINS GAMES, BUT TEAMWORK AND INTELLIGENCE WINS CHAMPIONSHIPS”
3 - 🏡 GET YOUR HOUSE IN ORDER
4 - 👁️ WHAT IS ESSENTIAL IS INVISIBLE TO THE EYES
5 - 🎻🎷 PLAN LIKE AN ORCHESTRA, PLAY LIKE A JAZZ BAND
 
1 - 💰 MONEY NEVER SLEEPS. 
Be clear on the role that your DTC will play: sales driver? Brand differentiation? Profit driver while collecting customers’ insights? Do your math and set your strategy wisely. DTC could erode your margins quickly without a complete P&L overview. Some examples? Don't forget customer acquisition cost (CAC) and customer lifetime value (CLV).
2 - 🏀 ”TALENT WINS GAMES, BUT TEAMWORK AND INTELLIGENCE WINS CHAMPIONSHIPS.”
Go-To-Market strategy and internal synergies should always be considered. What will be the pricing and assortment strategy of your DTC compared to other channels? DTC should be a top player of your team, not an opponent to fight, since it could bring long-term benefits to all your existing sales channels. Subscriptions, premium prices, exclusive products, personalization. You have infinite opportunities and it’s up to you to activate DTC’s potential in the right way.
3 - 🏡 GET YOUR HOUSE IN ORDER.
Think at your own online shopping experience for a moment. What are you doing when a checkout process fails, when your order is late, or when you get lost in a dark maze for contacting customer service? Painful, eh? So, why should your customers experience the same? 30% of customers having a bad experience with a brand don’t return. So, please, do yourself a favour. Set your website, order and customer service processes in order with tech solutions and digitalization as a must. 
4 - 👁️ WHAT IS ESSENTIAL IS INVISIBLE TO THE EYES.
It's beautiful to fall in love with your products. You have to be your first customer. However, this unconditional love could hinder the way in which you think about your products. You need to focus on thinking and acting like a customer. What needs are your products addressing? What solutions are they providing? Figure this out and let your marketing team do the magic.
5 - 🎻 🎷 PLAN LIKE AN ORCHESTRA. PLAY LIKE A JAZZ BAND.
All teams (remember, ALL) should be aligned on strategy, processes and goals with one person (e-commerce manager?) acting as main owner of the channel. With the right collaboration and planning the DTC will sound like a symphony. However, remember to leave your people free to explore and improvise. DTC could be the perfect channel to test and learn, and bring benefits to your whole company.

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