10 reasons to move to a DTC business model
Little by little, the middlemen are disappearing; the times when brands and companies only focused on manufacturing and selling to retailers are going away, since improving the customer experience has become one of the most important KPIs for brands that don’t only want to survive but truly thrive.
September 01, 2021
5 min read
That’s why Direct To Consumer or D2C business models are challenging traditional supply chains, removing third-party distributors, improving every aspect of the customer experience, and increasing profits for the business owners.
Here are our top 10 reasons you should definitely move to a DTC business model if you really want your business to succeed and scale.
The first reason to move to a DTC business model is that is the best way to embrace Omnichannel, and for us at Seeed, Omnichannel represents eCommerce with zero limits; represents a unique experience for shoppers where they are able to buy their favorite products across multiple channels that offers all kinds of payment methods and provides a personalized experience for them. Omnichannel also means that business owners have more control over their customers even when they return your products.
2. Improves the UX (User Experience)
Shopping directly from the source also represents an improvement on the UX in terms of assuring the customer that they are going to get exactly what they order, since all the product specifications, characteristics, and even return policies are there. If the product isn’t in stock, it is going to appear there, if the customer wants a specific size and is not there, the user will know, or if there’s a shipping delay, the user will know, because this business model allows the eCommerce to be fully complete.
3. Improves Customer Impression thanks to Reviews
It’s all about trust. Direct To Consumer helps consumers feel more comfortable with what they are buying because they can trust the word of the people that actually have bought the product, something that consumers cannot feel with the middlemen. And although Influencer Marketing is important at the beginning, reviews from strangers have a huge impact on the decision-making process because it makes the customers feel that they are doing the right thing by buying your stuff.
4. More control of your Brand Story
When you send your products to the middlemen or to a third party for reselling, you lose control over your brand, your reputation, your unique story. And if you are selling just to sell, that could work, but if you really want to help your customers with your product and create loyalty among them, the marketing should be controlled by you, the creator of the product, and the people who work with you that can relate with what you sell. D2C helps you manage the way you present your products and the way your customers will perceive them.
5. Access to a detailed Mailing List
Another important reason for moving to a D2C business model is that you will gain access to wide and detailed information of your customers; which means you will know stuff like where they live, who they are, what they like, their age, their birthday, and of course all their contact information. This, of course, will help you provide an even more personalized experience for them, like surprising your customers with a special discount on their birthdays or give them personalized codes to access to your blog or seminars, or to access to a SALE; all that, will make them feel special and connected to your brand.
6. Get a wider customer reach
Having an eCommerce driven by a D2C strategy allows you to widen your reach and stop depending on wholesalers or retailers to gain new customers. D2C gives you the opportunity to be found easily on the internet and, as a result, make more sales and scale faster.
7. Handle product returns and service issues better
With D2C, handling product returns and service issues not only gets better, but it becomes fun, because you can send them exclusive vouchers, coupons, personalized discounts, and turn a “bad” situation into a new opportunity to offer new products and maybe surprise them with free samples, besides the refund, of course.
So, it’s no longer a matter of just offering the refund or sending their money back, but to provide them with a new experience that they can talk about later with their friends. If they didn’t like that specific product, D2C allows you to handle the situation better and change their mind.
8. More coherence
Third-party distributors don’t know everything about your brand or your products, but with D2C, your customers can access all the information they need by visiting your eCommerce or your physical store. So, having in-house team support will help you create a coherent narrative that makes your customers get more involved with your message and your products.
9. Showcase all your products
When you keep the middlemen, they will not always display your entire product line and maybe stock the most popular colors and sizes, preventing your customers from having access to the complete collection because of a decision you didn’t make. And yes, you will always have products that are more popular than others, but that doesn’t mean there are no customers out there who want the product you are not showcasing. D2C allows you never to miss the chance of unlocking the potential of the product that the retailer thinks is not the best.
10. Avoid scams or fraudulent services
Finally, we have to say that this is definitely the most important reason to move to a D2C business model, because when you give your products to a third-party, you don’t know if your customers will get into a scam or a fraudulent service, that will damage your brand reputation. That does not happen with D2C because having complete control of your customers authorizes you to assure them that they will spend their money on authentic, high-quality products.
Moving to a Direct To Consumer business model is one of the best decisions you can make for the growth of your company, and at Seeed we help you create the platform to accomplish that.
Contact us and book your free consultation here!