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Five Ways a DTC Model Can Drive Brand Growth

From helping to build a closer relationship with shoppers to paving the way for more agile operations, a direct-to-consumer (DTC) strategy can be instrumental in growing your brand. Continue reading to discover how DTC can accelerate your brand’s journey. 

January 10, 2024

Celeste Rivas

A simplified supply chain means less exposure to delays

When you don’t need to rely exclusively on retailers or multiple third parties for sales, the process to get your product to consumers instantly becomes more streamlined and simplified.

With fewer steps between your shelves and your shopper's doorstep, your brand is less likely to experience delays or setbacks that can damage the shopping experience of your consumers.

And with a simplified supply chain, any delays that do occur can be more easily pinpointed and quicker to resolve.

Reduced intermediary costs allow for budget redistribution

Reducing or eliminating your reliance on retailers and third-party sellers naturally frees up a part of your budget that can be allocated to other areas of your operation that need it more.

Perhaps you want to enhance your logistics capabilities by offering faster shipping and creating a better consumer experience. Or want to beef up your performance marketing team to reach new shoppers or markets.

With DTC, the money you were previously investing in partnering with retailers can be put to work elsewhere, boosting growth in targeted areas.

Access to first-party data gives you in-depth insight into your consumer base

DTC operations give you access to a treasure trove of first-party data gleaned from a range of channels. These channels include your brand’s site, social media and own apps, amongst others.

This means you can analyze your shopper’s purchasing behaviors and direct interactions with your brand to understand their needs and preferences better. This information can, in turn, be used to shape your future strategies based on granular insights.

This availability of first-party data can also open the door to more deeply personalized shopping experiences.

This can include offers and communication around relevant products, product recommendations based on past purchases or interactions, or even new product development ideas based on purchasing patterns and opinions of your shoppers.

When more than 70% of consumers expect personalization from the brands they shop with, access to this data is crucial to continued and increased success.

Liaising directly with consumers means closer and deeper bonds

Having a direct line of communication with your shoppers means developing a better understanding of their wants and needs. But beyond that, it is also a bigger opportunity to foster long-term trust and loyalty. 

Strategies such as subscription schemes and loyalty programs can help DTC brands turn a one-time buyer into a returning one.

However, it’s through creating a differentiated shopping experience compared to third-party retailers or marketplaces that DTC brands can keep consumers coming back to their sites for more. 

This can mean different things for different brands. 

Offering a broader range of products or special or limited-edition items, for instance, or providing educational and relevant content on products and superb consumer service to make shopping easier and more efficient.

As the costs associated with consumer retention are not as high as those linked to shopper acquisition, this can have a positive impact on revenue. 

Streamlined operations translate into increased agility and speed of innovation

Having a DTC channel means being entirely responsible for everything, from logistics to marketing.

And while this may seem a daunting prospect for brands early in their DTC journey, this ownership offers clear benefits.

As the decision-making process involves fewer stakeholders external to your brand, your operations can quickly gain agility. As a result, you can implement and test different strategies and setups more quickly. And if you find a more optimal alternative, you can easily course at speed.

This allows for ongoing innovation, enabling your brand to remain flexible and change with the times as needed.

Growth can take a different shape from one brand to the next.

For some, it might mean expanding to international markets. But for others, it could require growing internal teams or innovating processes or products.

DTC can help achieve these targets and pave the way for long-term growth.

No matter what growth looks like to your brand, if you are looking to launch or optimize your DTC strategy, joining forces with a trusted partner is crucial.

At THG Ingenuity, DTC is at the heart of what we do.

Leveraging our proprietary technologymarketing and fulfillment architecture, we build personalized DTC consumer journeys that harness granular insights to drive brand growth.

Get in touch with us today to see how we can support your brand’s growth journey. 

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