How FMCG Brands Can Deliver a Positive Customer Experience Through a Direct-To-Consumer Model

As more consumers pivot to online shopping, FMCG brands are increasingly exploring a shift to a DTC model. Discover the key challenges they face in our new post.

March 22, 2022

5 mins read

Giulia Gallo

Today, consumers value a positive brand experience more than ever, with speed, convenience, friendliness, and knowledge considered the key components of a good purchase journey.

A good customer experience leaves them feeling heard and appreciated, resulting in them becoming loyal customers and real brand advocates.

For instance, 43% of consumers would pay more for greater convenience, while 42% would pay for a welcoming experience. 72% of shoppers would share a positive experience with six or more people.

When evaluating their journey, customers increasingly appreciate personal interactions with a brand, as they want to feel part of a community they can trust. They also want to connect with brands across multiple channels through innovative and personalized experiences.

As a result, more and more fast-moving consumer goods (FMCG) businesses that have traditionally relied heavily on brick-and-mortar stores are now moving towards a direct-to-consumer (DTC) model.

This move is driven by a need to establish authentic relationships with customers, and drive brand values and product differentiation.

In this article, we explore the key DTC strategies you need to know to help your FMCG brand differentiate itself in the market.

Create personalized customer experiences

An effective DTC strategy enables FMCG brands to leverage first-party data to gain insights into customer preferences and purchase intentions.

As a result, brands can create customized products and experiences that can lead to higher customer satisfaction and retention.

The use of first-party data also enables FMCG brands to generate personalized emails and messaging across different channels, further encouraging customer loyalty. When 80% of consumers choose brands that provide personalized products and experiences, the opportunity is clear.

FMCG brands are turning to DTC to offer immersive, connected and customized customer journeys that help them stand out from the competition and shape unique value propositions.

For example, wine and alcohol companies often include online personal consultations on their DTC sites and give customers information and suggestions to help meet their purchase requirements. Many also offer the option to order boxes or bottles with customized printed messages or packaging.

These personalized approaches help brands to establish an emotional connection that customers will not experience with other competitors, making that brand feel special to them.

Enhance your sense of community

The term “brand community” refers to the ongoing and meaningful relationship between a customer and a brand. Brand communities exists to serve the people in it, driving customer loyalty by meeting their needs and resonating with their values.

Brands who provide customers with consistent and direct communication across multiple channels such as social media, live chat or email are able to foster this sense of community.

At the same time, they also drive customer loyalty and aid the reduction of acquisition costs. In fact, consumers enjoy having conversations directly with brands and providing feedback or reviews of products and experiences.

Another important driver of brand community is influencer marketing.

Consumers want to hear honest opinions from people they trust. Consequently, teaming up with influencers can help develop these same bonds with target customers.

Additionally, video demonstrations of new products and testing experiences will boost engagement, resulting in higher brand recognition via reach and trust via reviews.

An influencer stands and gesticulates in front of a camera.

Innovate with your products

Using first-party data, DTC brands can quickly launch new products tailored to their target audience, often before their competitors, and position themselves as innovators in their market.

Instead of predicting consumer trends and relying on third-party intelligence, brands can create strategic plans based on real-time customer data and insights. As a result, they can reduce the time to market and improve customer experiences.

Real-time data from online interactions gives FMCG brands the flexibility to quickly adapt the products to customer needs, offering a competitive advantage.

Elevate brand experience through digital models

The DTC model unlocks valuable opportunities for FMCG brands to leverage digital channels and new revenue models – such as subscription services.

81% of US consumers subscribe to at least one service delivering anything from dog food and toiletries to dinner. One key benefit of subscription services for customers is that making payments is frictionless. But for businesses, the benefit lies in establishing predictive revenue.

This model not only drives customer loyalty and engagement, but also provides real-time customer data that brands can use to offer tailored offers or incentives.

This ongoing relationship ultimately creates a flexible, exclusive and superior customer experience.

FMCG brands can leverage other DTC channels, such as apps, to provide customers with e-gift cards, special discounts, limited-edition merchandise, or VIP experiences. At the same time, these also strengthen the brand community, differentiating the customer experience from competitors.

For example, many brands launch apps to reward customers for providing feedback and sharing their experiences as well as to inform users which stores stock specific products.

In a growing market and with customer expectations more demanding than ever, FMCG brands often need to find new ways to differentiate themselves and build unique value propositions that drive customer loyalty and engagement.

The DTC model is a powerful means for brands to build and nurture long-term customer relationship by offering customers personalized, innovative and brand community-based experiences.

At THG Ingenuity, we have powered the growth of global leaders in FMCG, including Coca Cola and Nestlé, through our tried-and-tested digital marketing, technology and fulfilment capabilities.

With our extensive portfolio of technology, operations and digital services, we can support your FMCG brand in delivering a positive customer experience e that accelerates your growth.

Get in touch today and discover the power of DTC for your brand.

A person cuts open a parcel with a pair of scissors.

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