Why DTC Is a Necessity for Omnichannel Retailers
The shift in consumer behaviour towards online shopping has been well-documented. The trend of e-commerce is on the rise, with a total of $1 trillion expected to be spent on digital channels by 2023. Changes in consumer behaviour have made DTC now a necessity for brands in today's market as it allows them to stay ahead of competitors while still appealing to customers who prefer shopping online than traditional retailers.
D2C is integral to your omnichannel strategy because it allows you to target specific customer segments and provide them with the exact products they need, whether through a mobile app or website. It also allows you to offer more personalized experiences and engage with customers on a deeper level than ever before.
Why should you need to start thinking about Direct-to-Consumer?
Your customers want it - this goes without saying but studies show that many people prefer shopping online or want more personalization options than those offered at traditional retailers.
More commercially viable now than it used to be - with falling costs for e-commerce software and tools, many businesses are able to create beautiful online stores in just half the time, it would have taken before D2C.
New technologies that make merchandising easier - new AI-based systems help select products based on your customers' preferences so you don't need an army of people doing this work.
Benefits of D2C Model
Higher margins - By eliminating middlemen, D2C allows brands to sell products at the same price as retailers. That makes D2C a great choice for brands that want to start direct-to-consumer sales but don't want to lose control of their marketing and risk losing profit margins.
Expanded market opportunities - Customers can be extremely influenced by sales and offers, which is why performance marketing campaigns with personalization would allow customers to connect to your brand & products in ways that are impossible from any other channel.
Control over branding - E-commerce offers the opportunity to attract customers by using D2C Branding, SEO, targeted ads, and social media to broaden the audience reach and have a conversation with them.
Reduce operational cost - Web-based management systems for your business can make inventory management a lot easier like ERP, CRM and CMS systems. These are easy to maintain, customizable, and provide better integration with other software apps on the market. Also, an e-commerce website costs less to run than a physical store.
Targeted data - You can use marketing channels & other related data sources to gather a lot of information about your customers. This will help you create a detailed buyer's persona and know what your customers like better which in turn helps you serve them better. Understanding more about customer behavior, and demographics can help you identify your target audience and better market your brand.
The pandemic has drastically altered shopping behaviour forever. Direct-to-consumer is the way forward because it's about being able to shop anytime anywhere without having any limits. You are in direct contact with your customers with no middleman. It is perhaps this ownership of customer data that is driving the latest trend of going direct-to-consumer, but what does that mean for brands? A lot! The fact is that if you're not already doing direct-to-consumer sales then you're leaving money on the table and missing out on opportunities to grow your business. Hurry up and hire web development company for your e-commerce business and accelerate your DTC journey.