While it may seem that anyone can establish a DTC (Direct To Consumer) brand, not all of them will grow into a success. This business model requires a different approach that may throw off even the most experienced business professionals.
Thankfully, Greg Gillman is a DTC expert and is here to help you grow your brand with these 10 useful tips:
How Does Direct to Consumer Differ From the Traditional Model?
The DTC model differs from the traditional retail model. In the traditional retail model, goods are produced by a manufacturer, purchased by a retail store, and then sold to the consumer. In the DTC model, goods are produced by a manufacturer before being sold directly to the consumer.
Essentially, this model cuts out the middleman of retail. This allows DTC brands to offer products to customers at lower prices since there’s no need for markup. eCommerce has helped DTC brands explode in recent years as consumers are able to quickly and easily access brand purchases to browse products and make purchases.
10 Useful Tips for Growing DTC Brands
The DTC model is a unique model that needs to be managed in a certain way. Here are ten useful tips that will help you grow your DTC brand:
1. Establish Brand Awareness and Identity
It would be incredibly difficult to grow a DTC brand if no one knows it exists. Instead of hoping that customers will somehow find you online amongst a deluge of competition, you need to go to them. However, many brands get ahead of themselves and try to sell products before first establishing brand awareness.
People won’t make a purchase from a brand that they don’t know. Instead, you first need to get your name out there and show people what you’re all about. With the right amount of time and diligence, you can establish the brand awareness and identity needed to grow your business.
2. Tell the Story About Your Brand
If you’re struggling to set yourself apart from all the other DTC companies in your lane, you need to focus on your story. Believe it or not, your products aren’t the only thing that sets you apart — your journey can set you apart as well.
Tell the story about where you’ve come from, where you’ve been, and where you hope to go. Make it as inspiring and engaging as possible. All of these qualities will make people take note of your brand and feel more invested in your journey.
3. Use Data To Learn About Your Customers
In order to be successful, DTC brands need to know their customers extremely well in order to target and cater to them. Many brands make the mistake of using a broad net to identify their customers. However, it often helps to get as specific as possible.
You can use data to gain these specifics and learn more about your customers. For instance, you can conduct market research. You can also analyze your existing customer group and that of competitors.
You can begin to break down who exactly you’re looking to target with your products from there. Go beyond basic demographic information to include more detailed characteristics of people, including interests, goals, pain points, motivations, etc.
4. Personalize the Customer Experience
The DTC model can seem quite impersonal since it’s usually done exclusively online with minimal content. So if you want to be a successful DTC brand and optimize your conversion rates, you need to break down that barrier by personalizing the customer experience to make it feel that you’re interested in and invested in them. In turn, they will be more likely to be interested in and invested in you.
For instance, you can offer personalized product recommendations based on quizzes. You can also offer complimentary samples or products based on previous purchases. Finally, you can offer free trials and testers.
5. Prioritize Customer Service
Another way you can break down the impersonal and detached barrier present with DTC brands is to prioritize customer service. Your brand needs to go above and beyond in this realm from start to finish.
For starters, you can offer a live chat option for customers to ask questions about products before they make a purchase. Once the purchase has been made, be sure to send out prompt updates about order statuses and be available for any issues during the fulfillment process. Finally, you can be flexible with returns or exchanges.
All of these factors combined contribute to an excellent customer service model for DTC brands.
6. Streamline the Buying Process
Nothing turns off a potential customer more than a complicated and convoluted buying process. Instead, DTC brands need to streamline the buying process to make it as simple as possible. By lowering the hurdles that customers have to jump over before making a purchase, you’re increasing the likelihood that they make it to the end.
You can do this by simplifying your checkout process. Instead of being required to set up an account, create a “guest checkout” option. Instead of having multiple different pages and a variety of different fields, limit it to a single page that contains only the most important information needed to complete the purchase.
7. Invest In Social Media Marketing
DTC brands need to focus on marketing more than brands within the retail model since customers are extremely unlikely to “stumble” upon them on the world wide web. One of the best ways to do this is through social media marketing.
DTC brands should create business profiles on social media platforms like Facebook, Instagram, Snapchat, Twitter, TikTok, etc., to reach their target customers where they spend their time.
8. Establish Marketing Partnerships
If you’re just starting out as a DTC brand and are struggling to launch your social media marketing and gain a following, then you may want to consider establishing marketing partnerships. For example, you can partner with influencers who have a niche following to promote your products and brand. Followers trust these influencers, and they will trust your brand by association.
9. Create Engaging and Useful Content
You need to create engaging and useful branded content to use on social media o build your online presence. Engaging content on social media may look like contests and sweepstakes.
Useful content online may look like video tutorials or live question and answer sessions about your products.
10. Use Email and SMS Marketing
While social media marketing may be all the rage, that doesn’t mean that you should neglect email and SMS marketing. Email marketing still has a role within the DTC sphere. It helps you keep in touch with customers and keep them involved in your business.
In terms of SMS marketing, this gives you quick and personal access to your customers. You can use this channel to present them with extra special offers or sensitive information to drive them to make a purchase.
The Rundown on Growing DTC Brands
While these tips may help, there’s no one formula for growing DTC brands. Instead, you may want to consult with an expert like Greg Gillman. Greg specializes in omnichannel growth strategies for DTC brands and has helped generate more than $4 billion in annual revenue for his clients.
Sources:
6 Tips on How to Tell Your Brand Story in 2019 | Forbes
Conducting Market Research | Entrepreneur
How This Entrepreneur Proved SMS Marketing Could Be Marketing’s ‘Next Big Thing’ | Inc.com
