Over the past few years, D2C businesses have proven themselves as financially viable and lucrative models. This has piqued the interest of incumbents and behemoths alike, but many have failed to build an excellent consumer-facing D2C brand! Building out a D2C channel can be tricky, especially when a company already has multiple other channels which demand focus. That being said, having a solid D2C channel is highly favorable in the long term, primarily due to how much it’s looked upon by investors and external stakeholders. According to an article by Inc42, D2Cs received an unprecedented $1.4 billion in funding.
With companies racing to profitability, most are attempting to find a breakthrough for achieving successful results. Here are some things worth considering for supercharging your growth journey –
- Go above and beyond just the transaction – Consumers are the king, and they are also king-makers. Going above and beyond for your consumers is essential, ensuring a more significant customer lifetime value. Why is this important? Because keeping a customer costs five times more than acquiring a customer. So, you must create the most pleasant experience before, during, and after purchases. To take this further, you could consider building a loyalty program. The members of top-performing loyalty programs are 80 percent more likely to choose that brand over competitors, and twice as likely to increase the frequency of their purchases as mentioned by Mckinsy.
- Hyper-focus on D2C – It seems evident that management must prioritize the D2C channel to grow, yet it is something that senior leadership forgets to focus on. Doing well on D2C is highly dependent on excellent cross-functional and cross-channel collaboration. Companies must construct concisely target customer segments, customer value propositions, and KPIs that would govern this specific channel. In addition, companies must similarly hire management that has navigated the e-commerce or D2C space to pursue the same goal.
- Build it better than anyone else – Investing in your D2C channel is perhaps the most important of them all. Over the past two decades, we have seen how investing in media has become a distinctive advantage. This is not going anytime soon. Getting ahead of the curve is vital to truly becoming a market leader because otherwise, you would keep trying to catch up.
To have ground-breaking growth, your decisions need to be bold and in unison with one mission. Prioritize on how you will get the next big breakthrough!