Before the internet, consumers really only had two options for buying goods: To order them and waiting for them to ship by post, a process that could take some serious time in the days before Prime two-day existed; or to go to a physical store where they purchased goods at retail prices. With the rise of ecommerce came another option: direct to consumer sales. And with a sharp (and continuing) rise in direct to consumer sales, tech-savvy manufacturers now have the option to skip the retail step altogether and market and sell their products straight to the consumers who want and need them. That means there’s a little bit of a learning curve for manufacturers, who under old models only needed to know how to sell their products to retailers. But for those willing to put in the time to learn new skills and try new strategies, there’s a whole new world online where manufacturers can manage their own storefronts and provide personalized products and services. Looking to improve your direct to consumer marketing in the new year? Here are the top 11 strategies, tactics, and examples you should be looking to. In a traditional retail landscape, manufacturers are pretty limited in the ways they can reach consumers. Catalogs and mail-order purchasing have existed for a long time, but more often, manufacturers would sell their products at wholesale prices to retail stores, who would then sell them at retail prices to consumers who shopped at their physical locations. In a direct to consumer model, the middle man gets cut out. Manufacturers are able to reach their target consumers directly, marketing their own products that consumers can buy (often at lower prices because they’re wholesale). Where this could only be done via catalogs and mail order for much of history, ecommerce has made it much easier for manufacturers to sell directly to consumers. This can mean greater profits for manufacturers, as well as better control and faster time to market for their products. Direct to consumer marketing (sometimes called DTC marketing or D2C marketing) is all the ways manufacturers reach those consumers and sell them products, from maintaining a website to marketing products on social media to buying ad space online and other strategies. Those strategies for DTC sellers are what we’re going to talk about here.What Is Direct to Consumer Marketing?
D2C Marketing Strategies & Tactics To Try
DTC marketing is a constantly evolving field, and there are new strategies and trends emerging all the time. But if you want to boost DTC sales in the new year, these are some of the time-tested, tried and true strategies and tactics you might consider.
Create a Brand Identity
The thing about marketing products in the internet age is that there are tons of channels retailers can use to reach their customers. That’s why it’s more important than ever for brands to have a strong and consistent identity, and to align their messaging across platforms. That way, when consumers encounter your brand — whether that’s on your website, on social media, or on a sign on the subway — they immediately recognize who you are and what you’re selling.
“Any business, whether it's a small mom-and-pop shop or a major corporation, needs to have a strong brand identity. A brand is much more than just a logo or tagline; it's the entire experience that a customer has with a product or service. A well-defined brand identity can help a business to stand out from the competition and build loyalty among customers. In today's increasingly competitive marketplace, creating a strong brand identity is more important than ever,” says Mike Jackowski, Managing Director at Veautie
Market Based on Data
Data is more powerful than it’s ever been. Thanks to technology tools, retailers have the ability to collect and analyze more data about their consumers than ever before, and that creates useful insights for effective product marketing. One of the most effective ways to market using data is to target specific subsets of your audience with offers that are especially relevant to them. Think offers like free trials, sample products, and coupon codes.
Get Social with your Marketing
Social media is one of the most powerful tools retailers can use today, and there are a number of different ways you can use it.
Social media is a great place to gather data you can use to learn about your customers. By analyzing a social following, you can learn about your audience’s demographics, likes and interests, behaviors, social media activity, and more.
Brands are also increasingly using social media to become more accessible to their customers, increasing brand loyalty. By using social channels as a customer service touchpoint, you can create a better customer experience, respond quickly to feedback, humanize your brand, and more.
And then there’s the option of using social media to sell products directly. Facebook, Instagram, and Pinterest all now allow companies to sell directly from their platforms, and more social channels are likely to follow suit.
It may go without saying, but be sure to maintain your brand identity in all social media interactions. This is how brands like Wendy’s and Netflix have created loyal social followings.
Partner with People Who Can Market For You
No social strategy is complete without some strategic partnerships, which your brand can use in a number of ways. Many brands find success by partnering with influencers, celebrities, or other people who have high follower counts on social media, paying them to post photo or video ads on their profiles. But partnering with normal, everyday customers who love your product can create word-of-mouth campaigns that can be effective without all the high follower counts and pricey sponsored posts.
Go Viral
One of the big advantages that DTC marketing has over traditional retail is its home is online, and it can fully take advantage of the dynamics of the internet to reach as many customers as possible. Creating viral-ready content is one strategy that can maximize the number of eyes that reach your site, but the problem here is that no one can really predict what will go viral.
Creating a clever, sharable ad is one way (like when Dollar Shave Club founder Mike Dubin stood in front of the camera to talk about his “f***ing great” razors). Another way is to take advantage of those partnerships you’ve formed, especially with influencers who can spread the word to tons of people online.
Personalize Each Shopper’s Experience
More and more, online shoppers are demanding consistent, personalized experiences when they shop, and the brands that have the most loyal customers are the ones who understand the relationship between an experience and a transaction.
Find ways to personalize what customers experience when they shop your brand. Some simple ways to achieve this include:
- Quizzes that deliver results in the form of personalized product recommendations
- Special offers or samples for products that complement the ones your customers have already purchased
- AR experiences that let customers test out products before they commit to making a purchase
- While surfing your e-commerce website, there are chances your customers are on the fence about your product. You can solve their problem by adding a direct call widget at the bottom of your website, where they can simply call you to ask queries just by clicking on the “Call Now” button
And keep in mind that customers want that personalized experience to be omnichannel, meaning they want an experience that stays custom to them and their journey across different channels and devices.
Reach Customers the Old Fashioned Way: Email
Even in the age of social media, email is still a powerful way for marketers to reach customers. Utilize any existing customer emails you have by sending out periodic offers that entice people to make repeat purchases. It’s also fairly simple to set up personalized, automated transactional emails: welcome, order confirmation, thank you, shipping updates, and more.
Wayfair is one DTC company that’s utilizing email marketing in a great way: After a customer makes a purchase, Wayfair follows up with an email showing complementary products in similar materials and finishes that would go with the product they purchased. For example, someone who buys a white painted wooden end table might then get an email with other common pieces of bedroom furniture that come in white painted wood finishes to match the end table. Since most people want furniture pieces that match, this is a great way to send personalized marketing emails that appeal to what Wayfair’s customers are likely looking for.
Take Your Marketing Offline
While many DTC companies have risen to prominence because of the rise of ecommerce, there’s still something to be said for traditional, offline marketing. That’s right — you can take your marketing IRL.
Things like signs and billboards still work, though they might be out of the price range of many bootstrapping ecommerce startups. Still, there are ways to take marketing offline that reach tons of your target customer base without coming with huge costs. For example, brands can use QR code generators to create branded omnichannel marketing campaigns to engage better with customers.
Take a look at some examples of innovative marketing below.
How Major DTC Brands Are Slaying the Marketing Game
Want to see these strategies in action? Here are some DTC brands that are killing it with their marketing.
Casper: The $100 Million Mattress Disrupter
Casper, the bed-in-a-box startup that launched in 2014, had an uphill battle disrupting the crowded mattress industry. But in just two years, Casper pulled off more than $100 million in sales. How? By addressing customer pain points and then marketing the heck out of its solutions.
Casper wanted to address a few major problems: Mattresses are expensive, and to buy one, you have to go to a giant mattress store with an overwhelming number of options. Their answer was to sell just one model of mattress, at a low price, delivered straight to customers’ homes.
Here’s the problem, though: Many people were reluctant to buy a mattress they couldn’t test out first. That makes sense—different people have different preferences about what they sleep on. It took some big marketing wins for Casper to succeed. Here’s how the brand did it.
First, Casper focused its main marketing efforts in just two places: Los Angeles and New York City. These are the two largest cities in the United States, so to appeal to those populations, Casper created a brand that painted the company as trendy and urban, and posted IRL advertising all over subway stations. So far, so good.
But where Casper really succeeded in DTC marketing was with its use of social media influencers. The brand paid people from micro-influencers to Kylie Jenner to post ads on their social accounts. After Jenner posted a video unboxing her new Casper mattress, the brand saw sales double virtually overnight.
Barkbox: The Subscription Service with a Viral Word-of-Mouth Strategy
Another DTC company that saw great success by partnering with users is Barkbox, a subscription box service for dogs and their humans that launched in 2011. Founder Matt Meeker thought there was an opportunity to cash in on the $86 billion pet industry by appealing to the trend that millennials treat their pets like their children. Barkbox offers just one product: A monthly subscription to a box of curated treats, toys, and other products for pampered pups. The startup has now shipped more than 10 million boxes.
But getting there required taking advantage of a DTC marketing trend that, while common today, was a relatively new tactic when Barkbox was attempting to rapidly scale. Barkbox used the power of viral social media content, but without having to pay big bucks to influencer to do so.
Instead, the company relied on word-of-mouth to help it grow. Early on, Meeker noticed Barkbox’s early adopters loved to post “unboxing” videos showing them opening their monthly boxes with their pets. The videos became powerful tools that showed the quality of the products that come in Barkboxes, as well as the fun of sharing a monthly crate of toys and treats with your best dog friend. That was (and still is) a major driver for Barkbox’s growth.
Bombas: A Mission Driven Sock Seller with a Bold Offline Strategy
When Bombas wanted to create a better sock, they definitely had some challenges to overcome. Are consumers really concerned enough about footwear to be swayed away from the cheap, multipack socks that dominate the market? Are they willing to pay premium prices per pair for a better product?
The answer is yes. Bombas engineered a sock that’s packed with features — from a honeycomb grid support system in the arch to a reinforced blister pad built into the heel — that convinced shoppers their socks were better. But it was the Bombas brand that helped it sell at its chosen price point that nears $20 per pair.
Bombas created a strong identity as a mission-driven company that appeals to socially conscious shoppers. From its beginnings, it has marketed its buy-one-give-one model that provides a pair of socks for a person in need for every pair that’s purchased. That helps buyers justify the premium price.
In addition to its branding strategy, Bombas embraced some helpful offline marketing in its early days. In 2017, the company appeared on the NBC reality series Shark Tank, something that’s proven for years to come with a big boost in sales for companies, whether they strike a deal with the Sharks or not.
DTC Marketing: Boost Sales in 2020
With every new year comes new strategies, tactics, and tools to boost your DTC marketing and sales. Ecommerce is constantly changing. Learn about the tools you need to stay on top of all those changes with our Transforming Ecommerce ebook.
label Ecommerce Marketing, , Product Listing Optimization, Omnichannel Marketing
FAQs
What is DTC marketing strategy? ›
Direct to consumer (DTC) marketing is designed for brands that skip traditional distribution channels and sell directly to their customers. In the past, many brands had to rely on retailers in particular to help them sell and distribute their product to the vast majority of consumers.
What is DTC example? ›Direct-to-consumer brands sell directly to customers online, bypassing the “middlemen” of wholesalers and retailers. This allows them to control the user experience, collect first-party shopper data and increase margins. DTC brand examples include Allbirds, Casper and Warby Parker.
What are marketing strategies example? ›Marketing strategies
For example, if your marketing plan is to promote a new product or service, you might have a strategy dedicated to how you're going to use email marketing to support these broader goals. Every marketing plan will most likely produce several marketing strategies as part of the broader plan.
- SEO.
- Content marketing.
- Multimedia.
- Blogging.
- Guest blogging.
- Social media marketing.
- Email marketing.
- Local SEO.
To build a DTC brand, you need to come up with a product that addresses the consumer's pain points, do market analysis, create a business plan, find financing, and start building brand awareness.
How does DTC strategy satisfy customers? ›By cutting out the middleman, DTC businesses can target, market, sell, and distribute directly to their customers, resulting in a better relationship with them. They can also offer valuable perks such as product variety and lower prices.
Is Nike a DTC brand? ›Nike is a trailblazer in the DTC space, driving up its revenues and market share by quickly adopting the trend. Competitors like Adidas and Under Armour have announced shifts toward DTC, too—but to some degree, they are still playing catch-up.
Is Amazon a DTC? ›As a DTC brand, you have more flexibility to try different platforms and techniques to grow your business. By tracking performance, you'll quickly discover whether Amazon is a good fit for your brand.
Is Uber a DTC brand? ›A DTC brand is any company that sells their products to consumers, rather than going through a distribution channel or retail store. With that definition, DTC can take on many different forms. Sometimes, it's a digital native and service-oriented company like Uber.
What is strategy with example? ›So, for example, your marketing strategies would look at price, distribution, product, packaging, and promotion. There might be a specific strategy for each. HR management will have a set of strategies too. These could include recruitment, retrenchment, remuneration strategy, or training strategy.
What are digital marketing tactics? ›
Digital marketing tactics are the channels that help you reach your target audience with the right information about your brand, product, or service. These channels empower you to help your buyers with any questions or challenges they may face, so you get a step closer to your marketing goals.
What are the 7 strategies of marketing? ›It's called the seven Ps of marketing and includes product, price, promotion, place, people, process, and physical evidence.
What are the 10 marketing activities? ›- Conduct market research. ...
- Segment your customers. ...
- Enhance customers' experiences. ...
- Create engaging and informative content. ...
- Target customers with high bounce rates. ...
- Distribute newsletters. ...
- Budget for more ads. ...
- Develop an effective pricing system.
- SEO. ...
- Influencer marketing. ...
- PR and affiliate marketing. ...
- Email marketing. ...
- Social media marketing.
The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,” or the combined tools and methodologies used by marketers to achieve their marketing objectives.
Why are DTC brands successful? ›DTC brands are characterized by an emphasis on convenience and speed of delivery. They have more control over the customer experience because they don't have to rely on retailers or other third parties who may not be as invested in the brand's success. D2C brands build a closer connection with their customers.
What is DTC in Nike? ›Its sportswear offer and direct-to-consumer (DTC) focus has been key to its success, and this will continue into FY2022/23, with the brand forecasting currency-neutral revenue growth of low double digits.
Why does DTC strategy boost profitability? ›Why does DTC boost profitability? By implementing a DTC strategy, businesses get in direct contact with their consumers, which eliminates the costs of middlemen. Instead, DTC companies get to retain total revenue.
Why is DTC so important? ›Direct to consumer is exactly what it is, selling directly to end customers. The strategy behind this approach is that it bypasses wholesalers and retailers, thus cutting out unnecessary costs associated with having intermediaries between manufacturers and the consumer.
How do you sell directly to customers? ›- Bring in Influencers. ...
- Pay people to spread the word. ...
- Become highly sociable. ...
- Provide valuable content. ...
- Exceptional customer service is key. ...
- Optimize your website. ...
- Optimize the purchase experience. ...
- Make returns and exchanges as hassle-free as possible.
How do you sell products directly to customers? ›
...
1. Managing the operations of the business.
- Packaging the product for end customers.
- Creating and maintaining an ecommerce storefront and other digital sales channels.
- Customer acquisition, support and retention.
- Order processing and shipping.
Chief among those is that DTC sales are more profitable. Hence, the number of startups that have cropped up as DTCs. Nike has a strong brand, so it's able to command a sizable business through its own channels, but the more sales Nike can get that way, the better.
When did Nike introduce DTC? ›We know that when we get to the other side of this, we'll be in even stronger shape. We'll be more agile, more direct and more digital,” said Donahoe. Nike launched its Consumer Direct Acceleration strategy in 2017 to “leverage the power of digital” by investing in its ecommerce, apps and product innovations.
Is Nike B2B or B2C? ›You are certainly thinking that Nike is a B2C brand – which is true – but keep in mind that their marketing strategy can be applied to any B2B brand.
How does Amazon use direct selling? ›Instead of selling your products to customers on a one-off basis like you would in Seller Central, Amazon buys large quantities of your product. They then sell them on their site. Sold by Amazon. Because you're selling directly to Amazon, your brand is listed as being sold and fulfilled by Amazon.
Is selling through Amazon D2C? ›The question of whether to sell on third-party e-commerce platforms like Amazon is common among direct-to-consumer or D2C companies. While as a D2C brand you should prioritise selling products directly from your website, it's always wise to keep a certain selection of your product catalogue on Amazon.
What is a direct-to-consumer brand? ›What is a direct-to-consumer brand? Direct-to-consumer brands, or DTC brands, are those that sell directly to the end customer rather than relying on middlemen like retailers and wholesalers.
Is DTC the same as B2C? ›Sometimes even seasoned fulfillment experts use B2C and DTC interchangeably. B2C stands for Business-to-Consumer and refers to goods or services sold by a business to end customers. DTC (or D2C) stands for Direct to Consumer. In simple terms it means that orders are fulfilled and shipped directly to the end customer.
Is DTC same as ecommerce? ›DTC ecommerce (direct-to-consumer ecommerce; also referred to as D2C ecommerce) is a business model where merchants sell their products and services online, directly to their end customers, rather than involving third-parties like wholesalers, distributors, and large online marketplaces.
What's the difference between DTC and ecommerce? ›While ecommerce fulfillment must involve some form of online selling, it doesn't necessarily have to be direct. Choosing to dropship or sell via a marketplace like Amazon or Etsy, for example, would be a form of ecommerce fulfillment – but this wouldn't be considered direct-to-consumer selling.
What is the difference of strategy and tactics? ›
Definition of tactics
While strategy is the action plan that takes you where you want to go, the tactics are the individual steps and actions that will get you there. In a business context, this means the specific actions teams take to implement the initiatives outlined in the strategy.
- Tactic 1: Establish Your Vision, Mission, and Overarching Goals.
- Tactic 2: Measure Your Progress.
- Tactic 3: Turn Long-Term Strategies into Short-Term Tactics.
- Tactic 4: Get Everyone on Board.
- Tactic 5: Put Together a Simple Strategic Document to Serve as Your Compass.
- Business strategy.
- Operational strategy.
- Transformational strategy.
A digital marketing strategy is a plan for establishing an internet presence through online channels such as organic search, social media, paid ads, and other web-based mediums such as your website.
What are the four digital marketing strategies? ›Digital marketing can be broadly broken into 8 main categories including: Search Engine Optimization, Pay-per-Click, Social Media Marketing, Content Marketing, Email Marketing, Mobile Marketing, Marketing Analytics and Affiliate Marketing .
What is ATL and BTL strategy? ›Above the Line, or ATL Marketing, refers to generally untargeted, massive campaigns to raise brand awareness and reach more people; below the Line, or BTL Marketing, refers to the much smaller and highly targeted world of ads, aimed at individuals and with easy to track returns on investment and a definitive audience; ...
What are the 7Ps of digital marketing? ›The benefits of marketing decisions around product, price, place, promotion, people, process, and physical evidence are vast. Businesses that understand how to connect all the pieces can improve their competitiveness in the marketplace through marketing.
Why is 7Ps marketing mix important? ›7Ps are important. It provides the company with variables to create value and generate a competitive advantage in marketing. In the conventional marketing mix, marketers use four variables: product, price, place, and promotion.
Who invented the 7Ps of marketing? ›The 7Ps marketing model was originally devised by E. Jerome McCarthy and published in 1960 in his book Basic Marketing. A Managerial Approach.
What are the 10 marketing activities can you do in PR? ›- 1) Data collections. ...
- 2) Content creation. ...
- 3) Target users that abandoned your shopping cart or online form. ...
- 4) Welcome or activation programs. ...
- 5) Collect reviews. ...
- 6) Birthdays messages. ...
- 7) Sales emails. ...
- 8) Post sales email.
What are 5 examples of marketing? ›
- Get on the Phone and Cold Call. Whether they call current customers or members of the general public, companies often simply call people up on the phone and offer them services. ...
- Send a Punchy Newsletter. ...
- Search Engine Marketing. ...
- Meeting Customers at Trade Shows. ...
- Product Placement in Entertainment.
If you are looking for the overall most effective marketing strategy for small business, content marketing is the winner. Content marketing encompasses blogs, videos, social media posts, podcasts, webinars, and more – basically, any type of content you can distribute online falls into this category.
What is the best marketing strategy in 2022? ›- Look for Opportunities to Diversify. ...
- Embrace Paid Social. ...
- Focus On Your Existing Content. ...
- Nurture Brand Advocates. ...
- Constantly Optimize User Experience. ...
- Connect Online and Offline Strategies. ...
- Prioritize Authenticity. ...
- Create a Memorable Message.
At the broadest level, marketing strategy can be defined as an organization's integrated pattern of decisions that specify its crucial choices concerning products, markets, marketing activities and marketing resources in the creation, communication and/or delivery of products that offer value to customers in exchanges ...
Is DTC the same as B2C? ›Sometimes even seasoned fulfillment experts use B2C and DTC interchangeably. B2C stands for Business-to-Consumer and refers to goods or services sold by a business to end customers. DTC (or D2C) stands for Direct to Consumer. In simple terms it means that orders are fulfilled and shipped directly to the end customer.
What are DTC brands? ›Direct-to-consumer brands, or DTC brands, are those that sell directly to the end customer rather than relying on middlemen like retailers and wholesalers.
What is the full form of DTC? ›The Depository Trust Company (DTC) is one of the world's largest securities depositories.
What types of marketing communications are most suitable for DTC brands and why? ›Direct-to-consumer companies have to entice leads to buy directly from them, so they need to take a more proactive approach to outreach. For example, DTC brands typically have a strong presence on social media as well as other marketing channels such as email, SMS, and push notifications.
What's the opposite of DTC? ›The Difference Between B2C and DTC
These two product delivery systems are very much opposites. The B2C model is what the most businesses use to deliver their products and services to consumers. DTC, on the other hand, is a method of selling directly to customers without going through traditional channels.
Business-to-consumer companies usually involve retailers in selling goods and services to end customers. Some of the most common B2C examples are Amazon and Facebook Marketplace as product-centric business models. Customers can buy products directly from retailers online and do not need to visit physical stores.
Is Amazon a D2C? ›
The question of whether to sell on third-party e-commerce platforms like Amazon is common among direct-to-consumer or D2C companies. While as a D2C brand you should prioritise selling products directly from your website, it's always wise to keep a certain selection of your product catalogue on Amazon.
Is Nike a DTC brand? ›Nike is a trailblazer in the DTC space, driving up its revenues and market share by quickly adopting the trend. Competitors like Adidas and Under Armour have announced shifts toward DTC, too—but to some degree, they are still playing catch-up.
Is Uber a DTC brand? ›A DTC brand is any company that sells their products to consumers, rather than going through a distribution channel or retail store. With that definition, DTC can take on many different forms. Sometimes, it's a digital native and service-oriented company like Uber.
Why are DTC brands successful? ›DTC brands are characterized by an emphasis on convenience and speed of delivery. They have more control over the customer experience because they don't have to rely on retailers or other third parties who may not be as invested in the brand's success. D2C brands build a closer connection with their customers.
What does DTC mean in text? ›Summary of Key Points
"Down to Cuddle" is the most common definition for DTC on Snapchat, WhatsApp, Facebook, Twitter, Instagram, and TikTok. DTC. Definition: Down to Cuddle.
If your current custodian is ACAT-eligible, they should be able to provide their DTC participant number. To confirm your custodian's DTC number, please contact your current IRA custodian. If your current custodian is not ACAT-eligible, please reach out to support@fundrise.com.
What is DTC settlement? ›DTC, the central securities depository subsidiary of DTCC, provides settlement services for virtually all broker-to-broker equity and listed corporate and municipal debt securities transactions in the U.S., as well as institutional trades, money market instruments and other financial obligations.
What are five DTC brands you think do affiliate marketing really well Why? ›Hulu, Target, Nike, Microsoft, Casper, Etsy — all kinds of verticals and businesses, and each one has an affiliate program. If your direct-to-consumer marketing plan needs to get more bang for its buck in 2021, look no further than affiliate marketing.
What is direct-to-consumer strategy? ›Direct-to-consumer (DTC or D2C) refers to a popular marketing and advertising strategy in which the seller makes a direct appeal to the customer, eschewing traditional advertising methods, such as television spots, public displays, and radio ads, in the process. DTC essentially cuts out the middle man.
How was the marketing by DTC brands different from established players and more traditional marketing? ›DTCs were hardly the only companies looking to personalize their communications by collecting customer information, but they were able to access the necessary data, while entrenched, traditional brands often found that equivalent data was walled off by retail and distribution partners (or their own organizational silos ...