8 Key Benefits of Going Direct-to-Consumer (D2C)
D2C or Direct to Consumer is a business strategy where manufacturing companies have direct and full control over the brand including selling the products online unlike the traditional business which sells in brick-and-mortar stores. In the traditional business, the manufacturer sells his product to the wholesaler and the wholesaler sells it to the retailer who sells the products to the end consumer in physical stores.
However, digitally facing customers have opened opportunities for manufacturers to directly sell their products without involving any third party. Businesses have started using delivery management software to manage their direct users.
8 key benefits of opting for D2C business
Higher profit margins – Direct-to-consumer sales via an online platform allow the business to remove the need for a third party or the middlemen like wholesalers, distributors, or retail partners. Online shopping offers flexible online payments while purchasing which results in improving the cash flow. With their removal businesses can take all the profits and can increase them by 30% to 40%.
Elevates your sales – Removing the middlemen from the business and selling the product directly to the end consumers removed extra costs. Reduction in additional costs allows businesses to use the funds for marketing strategy in order to attract new consumers which eventually leads to improved sales. The direct-to-consumer business also helps in understanding the market demand and analyzing it, giving higher business expansion possibilities.
Builds Brand Loyalty – Customers have the opportunity to buy products directly and be able to personally know the brand helps in building trust among the buyers and boosts customer relationships.
Increased control over brand communications – The businesses have direct and more control over the brand messaging and consumer engagement. Direct consumer engagement allows consumers to understand the core value of the business. This increases the transparency and trustworthiness of the business. Having control over brand communication allows businesses to focus on the target audience and acquire new customers. Delivery management software with telematics allows direct communication between the customers and the business.
Direct access to customer data – Direct-to-consumer brands have direct control over customers’ data and their orders which helps businesses to understand customer sentiments and their expectations of the brand. The data helps in improving the product and service day-by-day. Using delivery management software can help in collecting users’ data easily which can then be analysed to design future strategies.
Ability to create a customizable experience – Adopting a B2C business allows businesses to create customizable products and enhance customer experiences of their loyal customers by giving them special discounts or offers. 61% of consumers would be willing to share more information with brands if it would allow them to have a better shopping experience and meet individual consumer expectations.
Digital-first marketing – The D2C business also gives businesses the opportunity to integrate marketing efforts digitally and increase brand and customer interaction. Businesses can run digital loyalty programs on social media channels that can help in acquiring customers.
54% of consumers expect to receive a personalized discount within 24 hours of first contact with the brand.
Product customization – Businesses can curate customized products on demand. This helps in strengthening the customer’s business relationship and adds value to the brand.
51% of consumers see it as vital to receive a personalized experience through the brand’s various digital channels.
Sales promotions – Businesses with a direct-to-consumer (DTC) business can use sales promotion strategies like discounts, tiered promotions, flash sales, free gifts with purchases, and giveaways. This sales promotion technique is a temporary campaign or offers to boost the interest and demand for a particular product.
26% of consumers believe that an improved security and user experience on the payment gateway facilitates their consumption at D2C.
Adapting the Direct-to-Consumer business can open up new opportunities for expansion and scaling up the business. The DTC model helps businesses to know and interact with their end customer and understand their expectation of the brand. This helps businesses in improving their products and services which eventually increases the profitability and productivity of the brand.
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He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.