The direct-to-consumer(D2C) model allows the marketers to sell products directly to the consumer leading to a better experience. Instead of using wholesalers or retailers in the middle, direct-to-consumer brands do the business directly to the end customer. D2C retail model market, ship, and sell its products directly to the consumer.
In the direct consumer model, customers get the products directly from the brands that manufacture them. The D2C model is gaining popularity in countries such as the US, China, Japan, and India. Initially, D2C brands distribute their products via e-commerce platforms, retail stores, or social media. Physical outlets by this brands are purposely designed to enhance brand awareness and customer engagement, encouraging more online sales. Brands need to follow a traditional supply chain where their products need to pass through distributors and retailers before reaching the customers. E-commerce platforms replaced the traditional gatekeepers with an online marketplace with advertisements. However, few limitations were there in these models. So the scenario changed substantially when this model was re-introduced in digital form. Brands are getting complete control over the distribution channel.
Difference Between D2C And B2C
In the D2C business model, brands or manufacturers sell directly to the consumer or clients without keeping a third party in between. But in the B2C (Business to Consumer) model, a company sources a product from a manufacturer and then sells it to the customer.
Benefits Of This Model
- By eliminating the gatekeepers, brands can reduce distribution costs and can increase their profit in this way.
- Before D2C, brands used to market their products through traditional channels like Tv, Radio, and Print ads. But, after the arrival of the eCommerce model, now brands can use various mediums like advertisements, SEO, affiliate marketing, social media marketing, etc.
- D2C brands allow marketers to understand customer behavior, identify patterns and trends, and know the requirements of the customers so that they can deliver customized products and offerings.
- The most valuable asset direct-to-consumer brands have is the ability to obtain immediate feedback.
5 Strategies For This Business Model
1. Good Use Of Reviews And Testimonials
Word of mouth is a powerful weapon for any brand, but this model relies on loyal customers. Collecting testimonials from loyal customers and then sharing them in the ads, social media, landing pages, product pages, and other relevant locations. Those reviews and testimonials should be very friendly that will attract potential customers.
2. Reach The Target Customers
Marketers can use SEO (search engine optimization) and PPC (Pay-per-click) ads to reach the target audience in different channels. Marketers can learn the keywords and phrases they use to find what the customers are searching for. Marketers can create ads that leverage those keywords. Marketers need to have a clear understanding of the solution they are offering. They can retarget the customers to stay at the forefront of the customers’ minds.
3. Proper Ad Placement
A marketer can take this business model to the next level by providing the ads to other places where the target audience is. Marketers should use the related and relevant keywords that the competitors are using, and the target audience is searching for. This is a very important method that works wonders.
4. Unique Offerings
This is a very important step for D2C brands. If the marketers are going to sell a product directly to clients, they need to be prepared with the reason to buy. Sometimes unique offerings or low-price models can beat the reputed brands. So, to make a long-term relationship with the customers, marketers need to come up with unique ideas and different ways.
If the D2C brands can be build-up in a proper way, customers can be the best marketers. When they love the offerings, they can help others to get excited. In addition, they can talk even better than the marketers as they already have the experience. Marketers can make the share option easy by providing short URLs and can send gifts for a loyalty program to get more positive feedback and referrals.
Digital Marketing Manager at Cloudvandana Solutions