D2C is the future of e-commerce. The most prompt reason for their growth is the ease of setting up businesses online and their ability to solve consumers’ problems first-hand. The customer need that has gone unmet for years is the communication gap between the brand and the customers. The well-positioned D2C brands are filling the void while competing for head-on with the retail giants in the industry.
In the ever-growing competitive landscape, D2C brands have access to first-hand customer data that gives them invaluable insights and an opportunity to innovate their marketing strategies. D2C brands are less reliant on e-commerce marketplaces like Amazon, Flipkart, etc., creating an opportunity to capture a more significant part of the growing online market.
The blog examines how D2C brands can make it big by taking on the market intelligence approach and hopping on the trends.
D2C Trends: Finding Success Going Direct To Consumer
With the increasing number of internet users in India and worldwide, the future of D2C e-commerce is bright. More and more D2C brands are seizing this opportunity and are choosing to communicate directly with customers, eliminating the concept of intermediaries.
Human-like AI Chatbots
Intelligent AI chatbots talk with the customers just like humans and act as reliable customer support. According to reports, 41.3% of customers use chatbots and other conversational channels like WhatsApp and SMS to convey their queries. Setting up quirky chatbots helps D2C brands deliver more value to customers and provide always-ready customer support.
Voice Search is the need of the hour
According to a report, 50% of users use voice-based search to research products. D2C brands are already utilizing SEO and SEM to increase organic traffic and get their customers’ attention. Now it is time to enable voice search and reach such a user segment.
Personalized Customer Experience
Treating customers like people, understanding their shopping behaviour, and giving them recommendations beforehand can change the brand-customer relationship. Gone are the days when including customers’ names in emails was enough to charm them—the future demands for D2C brands to develop a better way to personalize the customer journey.
Adopting Omnichannel Strategies
According to BigCommerce’s survey, 31.04% of millennials and 27.5% of Gen X customers buy products from brick and mortar stores. However, after the pandemic, more and more customers are comfortable shopping online. It implies that retail has become a mix of physical and online stores, and therefore there is a need for D2C brands to take an omnichannel approach and attract customers from anywhere and everywhere.
Video Marketing and Brand Storytelling
Videos are 600% more effective than any other marketing content. It is the most readily consumed content. Moreover, the average customer already has 9.5 video streaming apps installed on their devices. Short-form videos like Instagram reels and TikToks are becoming incredibly popular. D2C brands must leverage data-driven storytelling to share their values and build brand loyalty in the years to come.
Subscription Business Model over Loyalty Programs
Brands like Netflix and Amazon Prime have a subscription business model. Their customers subscribe with them once, and they no more need to worry about repeat purchases. D2C brands are employing a subscription model to gain more loyal customers. Studies show that 70% of marketers will implement a subscription model in their marketing strategies.
Cater to the Mobile-first Customer
The shopping and buying behaviour of consumers have changed drastically over the last decade. Due to the convenience and ease that mobile phones offer, customers prefer shopping from their phones. It is no wonder brands in the D2C space are building a mobile first strategy and focusing their efforts on user experience optimisation. Every search starts from mobile phones and the device will continue to rule the digital marketplace. Gradually, more and more D2C brands will take on a mobile-centric approach and launch their own official app in the future.
The ever-blooming future of D2C
DTC brands have discovered a loophole in the relationship between brands and their customers and are successfully abolishing it. Daily first-hand interactions with customers assist them in collecting customer data and acting on it accordingly. But as the internet evolves and new e-commerce brands enter the market, D2C brands must revise their strategies.
D2C brands must focus on customers and give them a fantastic experience from the beginning to beyond transactions. It is time D2C brands work on their core strengths, i.e., product innovation, and take advantage of other platforms to help them scale their D2C sales.