Consumer trends constantly change because of new consumers entering the marketplace, politics, global trade, and a slew of other outside influences. Changes in consumer trends are not new. However, the global coronavirus pandemic spurred a colossal shift in consumers’ shopping unlike anything ever seen before. As a result, e-commerce businesses are booming.
In the United States alone, e-commerce sales saw a sharp spike of more than 30% in 2020. And it’s unlikely in the wake of the continuing health crisis and massive shift in consumer preference that online shopping will go anywhere anytime soon. Omnichannel solutions brands like Mitto, are stepping up to the plate to help brands navigate this rapid change.
To keep up with the demand for e-commerce and changing buying behaviors, many brands, including Nike and Zoom, have decided to plunge into the direct-to-consumer (D2C) pool. But is this the right choice for all businesses? Experts agree that with an omnichannel strategy, D2C can be highly successful.
What is D2C & Why Is It Right For Today’s Customers?
Statistics show that 6 in 10 Americans shopped at direct-to-consumer brands in 2021. Brands like Warby Parker, Hint, Glossier, and All Birds are among some leaders in this type of marketing. But what is direct-to-consumer (D2C)? And as non-D2C brands take notice, what will need to change for their marketing techniques?
D2C is a marketing tactic that involves reaching out to the customer directly without relying on intermediaries, including distributors, wholesalers, or retailers. D2C brands have complete control over their distribution, marketing, shipping, etc. This correlates with consumer trends. A whopping 55% of consumers have visited brand websites instead of purchasing items from a retailer website like Walmart or Amazon.
So, although not all countries utilize D2C as heavily as others, it is likely that D2C brands will only increase with consumer channel preferences.
What Are The Benefits of D2C?
There are numerous benefits of D2C marketing, including:
- Highly Personalized Experiences: Brands that use a D2C model can accumulate accurate, first-party data to completely customize a shopper’s experience.
- Tons Of Touchpoints: D2C companies have access to more touchpoints than retail companies like Amazon. Most retailers’ content is about the brand, not the products or services. D2C brands have end-to-end control, overseeing which touchpoints they want to leverage to increase sales.
- Cost Savings: By eliminating the need for intermediaries, like retailers and distributors who would take a cut of the revenue, businesses can offer more affordable products to customers and yield high profits.
By adding an omnichannel messaging strategy to the mix, brands can embrace – and even optimize – the existing benefits of D2C.
D2C & Omnichannel: An Optimal Pairing
Incorporating an omnichannel communication strategy into D2C business models allows brands to reach their audiences efficiently. Instead of simply relying on emails or traditional digital advertising methods, businesses can increase customer experience by being available on channels shoppers prefer. For instance, brands can engage and communicate with consumers on Facebook, Instagram, and other social media outlets for customer service relations. Moreover, with an omnichannel strategy, these interactions will move seamlessly from one platform to another, an experience that 86% of consumers now expect from brands.
For D2C brands with a global audience, omnichannel messaging allows them to connect with customers worldwide effortlessly. In Latin America, WhatsApp is the preferred messaging app of choice. Over in Europe and Southeastern Asia, people prefer Viber. And WeChat is the hot app in China. You can offer continuous support and engagement to your global customers 24/7, right from their preferred platform, using an omnichannel approach.
Mitto AG co-founder Ilja Gorelik said this in a recent interview: “Channel preferences range by country — American consumers use chat apps to engage with brands much less than in other countries: over 80% of consumers in China, Brazil, India, and Nigeria use chat apps for brand engagement, significantly higher than in the U.S. (51%).”
While a D2C business model allows businesses total brand control, access to more touchpoints, and higher revenue, omnichannel will also boost customer satisfaction and deepen brand loyalty. Businesses can offer ongoing support and engagement from almost any platform. Consumers will be able to directly engage with you during every step of the buying cycle, from awareness to post-purchase.
Mitto AG started first as a telecommunications solutions business, founded in 2013 by Andrea Giacomini and Ilja Gorelik. However, the company was always motivated by a commitment to customer service and evolved its solutions as digital communication also evolved. Today, Mitto has homes all over the globe and is striving to change the way customers interact with the brands they love.