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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 here.

November 15, 2023

Today, shoppers value a positive consumer experience more than ever, with speed, convenience, and industry expertise being the key components of a good customer journey.

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

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

When evaluating their journey, consumers 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, fast-moving consumer goods (FMCG) businesses that traditionally relied heavily on brick-and-mortar stores are increasingly moving towards a direct-to-consumer (DTC) model.

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

In this article, we explore key DTC strategies you need to know to help your FMCG brand create a positive consumer experience that stands out.

Create personalized consumer experiences via DTC

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 becomes too good to miss.

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

For example, wine and alcohol companies often offer online personal consultations and give consumers suggestions on what to choose. Many also offer the option to order boxes or bottles with customized printed messages or packaging.

Enhance your sense of community

The term “brand community” refers to the ongoing and meaningful relationship between a consumer and a brand. Brand communities exist to serve people who are a part of it, driving shopper loyalty by meeting their needs and resonating with their values. 

Brands that provide consumers with consistent and direct communication across multiple channels, also known as omnichannel, can foster this sense of community. 

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

The availability of first-party data offers a myriad of ways for FMCG brands to connect with their consumers and enhance the shopper experience. 

The gathered data can be used to better understand consumer preferences and behavior, which, in turn, can help inform product features and marketing campaigns. 

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 bonds with target consumers.

Leverage DTC for innovation 

FMCG brands with a DTC presence can quickly launch new products tailored to their target audience with the help of first-party data. Not only can they often launch before their competitors, but they can also position themselves as innovators in the market.

Instead of predicting consumer trends, you can create strategic plans based on real-time consumer data and insights. As a result, they can reduce time-to-market (TTM) and improve customer experiences.

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

Elevate brand experience through DTC

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

81% of US consumers subscribe to at least one service ranging from dog food and toiletries delivery to meal prep deliveries. One key benefit of subscription services for customers is a frictionless payment system. For FMCG brands, however, the benefit of subscriptions lies in a steady and predictable revenue stream.

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

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

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

Optimizing your DTC channel for improved customer experience 

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

The DTC model is a powerful channel for brands to build and nurture long-term consumer relationships by offering shoppers personalized, innovative and 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 solutions.

With our extensive portfolio of technology, marketing and fulfillment solutions, we can support your FMCG brand in delivering a positive customer experience that accelerates your growth.

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

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