Consider Direct-to-Consumer Marketing
The direct-to-consumer (DTC) model is becoming increasingly popular among consumer products brands. While it represents a big commitment of resources, DTC can be extremely advantageous for consumer products companies.
What is the direct-to-consumer (DTC) model?
The direct-to-consumer (DTC) model is a strategy that allows companies to sell directly to consumers. DTC may be used in addition to selling through retailers or as a way to bypass retailers. DTC offers brands the ability to create their own customer relationships, introduce new products, manage inventory, drive sales, and control pricing.
DTC models have been around for decades, but they’ve recently seen a resurgence thanks to the rise of e-commerce. The model can be applied across almost any industry – from food to fashion – and it’s particularly useful for brands that want to reach new customers or break into new markets. There are a variety of options available to implement a DTC channel, including an e-commerce-driven website, third-party websites and social media platforms.
Why is DTC growing among consumer brands?
The Direct-to-Consumer (DTC) model has been growing in popularity among brands, and it's easy to see why. Using DTC means brands can better pinpoint their target audiences and measure their advertising effectiveness. It also serves as a way to capture customer data that can drive new product development.
What are the advantages of using DTC?
There are many advantages to using DTC marketing, including:
It allows brands to more effectively market themselves.
Direct-to-consumer marketing is an effective way to reach new consumers, build brand value, and differentiate from competitors. It also helps generate brand equity with consumers, which can create loyalty and lower price sensitivities.
It provides brands with control over all aspects of their brand presentation.
Retailers are primarily concerned with serving their own interests, which can lead them to take actions that product companies may feel is detrimental to their brands, such as requesting changes to packaging graphics. By selling directly to consumers, companies can focus their brand presentation exclusively at consumers rather than retail partners.
It enables brands to reach new audiences.
Thanks to digital advertising platforms like Google AdWords, Amazon DSP and Facebook Ads, there are many ways to reach potential customers on a large scale at more affordable costs, which also means that DTC marketing is accessible to smaller companies with limited budgets.
What is critical for DTC success?
Successful DTC marketing starts with a compelling product. Without that, it’s hard to build a brand that people will want to buy from.
Ensure that the marketing message is clear and consistent across all platforms (website, email campaigns, etc.). Consumers evaluate products from various media platforms, videos, posts, user comments and publications. It’s critical that the brand and product story is the same everywhere.
Make sure there are no holes in customer service for site visitors who may have questions about purchasing processes or returns/exchanges policies. It’s also important that these interactions occur within rapid time frames.
Operations must function effectively. Supply chain management must align with customer service operations while IT infrastructure provides seamless integration between departments so that everyone and everything can work together to provide a positive customer experience.
Stay competitive with DTC marketing.
At Thomas|Ferrous, we believe that direct-to-consumer marketing is a key component to a successful, multichannel sales strategy. We know how to build marketing and communications programs suited for a multichannel environment. Contact us today and let’s talk about getting started.
