True Anthem

Going Direct to Consumer

By |2018-11-19T20:00:55+00:00November 19th, 2018|

Consumers have learned to smell a sales pitch from a mile away, and don’t have the trust for brands that they once did. Selling solely through a third party just doesn’t cut it any more. If you want to reap the benefits of the digital era and own the customer relationship, steer your strategy toward direct to consumer, or DTC, marketing.

DTC happens when your brand communicates directly with the consumer, instead of going through a third party. Nearly 40% of all brands are moving towards a DTC model. Why? While a TV ad might have brought in new business in the 1990s, consumption patterns are moving away from traditional venues. In other words, everyone’s flocking away from the tube and towards experiences like social media instead.

Why direct to consumer works

Although smaller brands have the flexibility to adjust to marketing trends, it’s more difficult for large corporations. These brands have had proven success with using channel partners; it’s not always easy to see why DTC would be beneficial.

If you choose to overlook DTC, you’re missing out on some serious market share, especially in the eCommerce space. The industry is rapidly moving toward DTC, and you don’t want to be left behind.

DTC is important for your brand because:

1. Consumer patterns and expectations are moving direct, and quickly. Look at brands like Netflix, Guilt, Allbirds, Casper, Warby Parker, and Bonobos. All of them have built disruptive brands that cater to consumer preference to buy direct.

2. You can own the relationship with your consumers. DTC puts you on the consumer’s level. This means you can build stronger and more loyal customers with greater relevancy and better personalization.

3. Consumer feedback loop. DTC gives consumers a platform to exchange critical feedback with brands. Consumers love giving direct feedback, and this is huge for brands. You don’t have to guess what your customers are thinking; they’ll gladly tell you!

4. Brands drive higher ROI with DTC. With DTC, brands find themselves pocketing higher margins. If you’re worried that your channel partners will get bent out of shape, there are ways to provide incentivizes and keep them motivated.

5. Data is king. Robust first party data means brands have the power to create hyper-targeted, personalized campaigns to consumers. This data helps brands own the customer relationship and directly build relationship with consumers.

DTC gives consumers a better experience, improves business ROI, and helps businesses grow thanks to timely feedback.

3 tactics for direct to consumer marketing
Even if you know that DTC is important, it can be tough to know exactly how you should implement it for your business. Try these ideas to implement an effective DTC strategy for your business.

Personalization

When you’re speaking directly with the consumer, you’re able to collect a smorgasbord of amazing data. Instead of relying on third party platforms or third party data, collect first party data to customize your DTC experience.

You can only do DTC successfully if you create your own audiences first. It requires more work, but it’s worth the extra effort. If you create loyal consumers with DTC, they’ll do the marketing legwork for you, minimizing costs and maximizing returns over the long run.

Personalization isn’t a buzzword, either. It has real implications for your ROI and sales. According to a 2017 report by McKinsey, personalization in retail advertising can boost sales by 15 to 20%. How’s that for a return?

Compile robust data on what consumers are buying, almost buying, and saying. The demographic and contact information in your CRM will also take you far. Of course, you can still personalize your content without using DTC, but it won’t be as effective or robust.

Customize to context and consumer

DTC lets you control how, when, and how much consumers engage with your brand. However, it’s not you with the reins: it’s the consumers. Your audience wants to engage with you on their terms. It’s up to you to figure out what content they want, in what format, on what channel.

Fortunately, DTC frees you up to measure these preferences, thanks to the robust first party data at your fingertips. Consider creating product videos, testimonial, white papers, or blogs if they resonate with your audience.

Build relationships

Sick of passive ads on the TV, consumers demand a better experience while shopping and even while they’re being marketed to. They want more quality information today, and more quickly. DTC helps you give it to them.

You can improve your customer experience by fostering relationships. This allows you to control your brand story and tell it directly to your consumer.

You can also build these critical consumer relationships through:

A mobile app: Your audience is likely on their phones. A lot. Stake your claim in this prime location by interacting regularly with your consumers.

Social media: Social media is a fantastic way to connect with your audience to build relationships. Share content, ask polls, and even reshare consumer content.

Email: Everyone is on their email. It’s a quick and cost efficient way to build relationships with your consumers. This means more loyalty in the long run.

The bottom line

Everybody wants to target the Millennials and Gen Z. But these generations aren’t watching TV, and they’re ignoring display ads. It’s time for brands to get active with direct to consumer marketing. In our new age of digital marketing, brands that deliver relevant, engaging experiences to the consumer will come out on top.

Are you trying to make DTC a reality, but aren’t sure where to start? Contact True Anthem to find your audience and improve your bottom line.

Leave A Comment