The Why and How of Leveraging the DTC Trend
Sometimes consumer behavior is a fad, which is fleeting and doesn’t warrant serious investment. Because, by the time you have a product ready, the fad will be over. A fad, therefore, is a short-term blip that comes and goes without making a lasting impact on the culture.
A trend, however, is different. This is a wide, sustained, and generalized change in the way people behave, including their purchasing behaviors.
The shift to on-line shopping is a trend (especially in the current COVID environment).
Brands should definitely not ignore this e-commerce/direct-to-consumer surge and should leverage it to their advantage as quickly as possible, because it’s not going away.
According to Euromonitor in its Beauty Survey 2020 Key Insights, “34% of consumers are ‘digital beauty’ shoppers, meaning that they purchase hair, skin or colour cosmetic products through online retailers and are influenced by digital media, online user-generated, or expert-generated content when shopping for or using beauty and personal care products”.
The last paragraph of the report is unequivocal:
While some of the more extreme limitations on everyday life seen in 2020 may be rare occurrences going forward, there is no doubt that many aspects of consumer behaviour have shifted for the long-term.
In the beauty and personal care industry, it will continue to be essential for brands and retailers to build their digital engagement and online shopping platforms to capture customers who are growing more comfortable buying skin care, hair care and cosmetics without first examining in person [emphasis added].
The why of pursing a DTC strategy is clear. What about the how? Some important considerations:
Ensure your internal systems are ready, including warehouse operations. If you’re unable to meet demand and fulfill orders in a timely manner, customers won’t be back.
One of those systems, your e-commerce website, doesn’t have to be world class, but you can’t afford to do it on the cheap. If consumers aren’t sure how to order from your site, chance are they won’t.
Overwhelm your audience with social proof — include as many customer testimonials as you can, for each product you offer. To make this easier, provide an easy way for your customers to give you feedback.
With no middleman, direct to consumer is truly a relationship. Consumers have countless options, countless ways to research your and other products, and they are careful about who they “partner” with. Don’t insult their intelligence.
This customer relationship is a marketers dream because you control the touch points and can shape the education of you audience. Have conversations. Find out what they want, and give it to them. It can really be that simple, and those insights can give you impressive speed to market.
The relationship focus has to carry through to the customer support function. You’ll damage your brand if you’re empathetic and understanding on the “front end,” but inattentive and unhelpful after the sale.
Find ways to use packaging to replace the fun and discovery of the in-store experience. Mail can be mundane; a shipment from your brand should always be memorable.
Keep in mind that in a lot of ways you’re competing against Amazon. If not in terms of product, then definitely in terms of the “Prime” experience of free and fast shipping. That doesn’t mean you have to ship orders free, just that customers will, even unconsciously, judge you against that high bar. Be swift with your order processing.
Brands that find their footing in this DTC environment and who can relentlessly delight their customers will claim increasing market share from those who can’t or won’t.
If your brand doesn’t already have a DTC channel, develop one as soon as possible. If you already have one, find out where you can continuously improve and innovate. It’s worth it!
The HatBerg Collective can help you develop or improve your DTC strategy. We’ve helped numerous brands get closer to their customers and our experience can help your brand as well.
Chaz Hatfield
Co-Founder
The HatBerg Collective