Adopting an agile direct-to-consumer (DTC) strategy isn’t any longer a alternative but a necessity. More and more corporations are taking charge of their entire product journey, from ideation and manufacturing to delivery. DTC strategies have gotten increasingly nuanced, with social and digital channels furthering the visibility of DTC brands.
DTC branded sites, corresponding to Nike and Apple, were ranked the third hottest online purchase channel in 2023, trailing only behind marketplaces and supermarkets (e.g., Amazon, Walmart, Target), per Statista. As consumers grow to be more informed and demanding, brands bypass traditional retail channels to satisfy their needs directly. They are creating more engaging connections, experiences and relationships with their consumers to drive loyalty and revenue.
Even the smallest friction in a buyer’s journey can hurt conversion or drive customers to competitors. The key to removing these barriers — and staying competitive — is using data to grasp and optimize their paths. Here, we’ll explore actionable strategies to assist marketers stay agile and thrive in the fast-changing DTC market.
Where to start
Digital commerce offers a treasure trove of retail marketing data waiting to be harnessed and activated appropriately. Use this data to interact consumers directly, understand their buying habits and take away hurdles in the purchase process — boosting satisfaction, loyalty and lifelong value.
Retailer audiences offer worthwhile data for acquiring latest customers. However, you have to first trust your personal consumer data — knowing how, where and by whom it’s collected, stored and used. Here are 3 ways to maximise the data you have already got.
1. Understand your data collection process
Start with examining your current ecosystem. Map out all touchpoints with your consumers, including the completely satisfied path and the full DTC checkout funnel. Customer journeys are multi-faceted and barely linear, so your brand must understand the nuances of every channel and interaction where insights will be unlocked.
Once you thoroughly understand how customers interact with your brand, ensure your data governance is about up for success. It must have mechanisms to make sure privacy and compliance, especially for personally identifiable information (PII) out of your consumers. Establishing strong data governance early sets the stage for future automation and efficiency in data collection and decision-making — enabling faster, more confident decisions.
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(*3*)2. Automate data collection so you’ll be able to grow with your customers
Once you’ve established your data collection foundations, you’ll be able to automate and optimize every step of the process over time. As you automate manual processes, like using AI to synthesize insights or visualize data quickly, you’ll be able to easily adjust your data collection to align with your customers’ changing habits. Instead of attempting to predict every latest channel or marketing tactic to achieve consumers, deal with constructing the right infrastructure for automation and scalability.
For instance, recent legislative actions targeting TikTok could significantly disrupt consumer interactions with your brand. But with a powerful data governance foundation and automatic processes for collecting and using data across channels, you’ll be able to swiftly adapt to such market changes and seize emerging opportunities.
3. Tap into models to unlock ever-increasing customer insights
With a solid data collection strategy, you’ll be able to construct models and transformations to handle essential gaps in your marketing strategy. Model constructing is crucial for gaining worthwhile insights out of your data. By using advanced machine learning and AI, you’ll be able to catch up with to a 360-degree view of your consumers’ behaviors, preferences, habits and contexts, helping you gain a competitive advantage.
Dig deeper: 5 aspects of direct-to-consumer brand success
What’s next?
Once you will have a solid data collection foundation, scalable processes and effective models, it’s time to place the data to work. These elements show you how to connect with customers where they’re and create latest opportunities for them to interact with your brand. The quality of your models and insights is dependent upon the data you provide, so investing time in establishing a powerful foundation will profit your brand in the future, positioning you as a frontrunner in consumer engagement.
Innovation in DTC marketing and brand engagement is accelerating, with latest platforms and channels continually emerging. Your brand’s success will depend upon your ability to quickly create processes that provide value to each you and your customers. Aim to steer the way in setting latest standards of customer-centricity.
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