A direct-to-consumer brand owner wondering how to overcome common D to C business challenges in 2022? Well, we have expert tips lined up for you!
We’re not wasting time with “what is D2C business” or “D2C meaning” or “B2C vs. D2C” or other questions of that manner. You already know that. We’ve answered the seven most common challenges our clients come to us with here at WebSpero.
As a bonus, the action points at the end of each problem help challenge your mindset for success. So, at the end of this article, you’ll have the information you need for a successful direct-to-consumer marketing strategy.
Take a look at our expert tips on how you can tackle these D2C challenges head-on:
1. Product Differentiation
D2C trends project that 40% of people will buy from D2C companies in the coming five years. However, with all the available brands today, it doesn’t take a sharp eye to notice that many brands within a niche look the same.
Whether it’s similar packaging, similar target markets, or similar messaging, brands have to find ways to differentiate their selling points from their competition.
While we understand that there’s a strategy to looking like other brands in your niche, ensure you build your following through a distinct brand message. Whether that’s your brand values or an offering that sets you apart, find an emotional connection with your customers.
Think, what is my unique selling point, and how can I build a community that resonates with my messaging?
2. Changing Customer Habits
Millennials are leading the world when it comes to online shopping. And 75% of the average US citizen is open to trying new brands. This means they’re switching brands at an unusual rate! McKinsey’s research notes that Gen Z is most likely to continue switching brands.
Another thing to note is that thanks to auto-sync turned on in their browsers, your users are browsing your site seamlessly across various devices.
For example, they might have stumbled upon your blog post on your product while using their laptop at work. Thanks to cookies, your social media advertisements target them on their phone, and they continue to purchase from your IG store.
Are you prepared to wow your customer through this journey?
Think, how can you combine new-age technologies (AR, VR, IoT, etc.) to make your customer experience more seamless?
3. Rise In Competition
- Almost 55% of customers report they enjoy buying directly from brands.
- As per a recent study, 40% of customers expect 40% of their spending will increasingly go towards D2C brands.
- 78% of D2C brands have expanded their marketing budget as compared to 60% of conventional retailers.
With the rise in social media and other digital opportunities, more and more brands embrace a D2C marketing strategies. And this shows that the competition within the D2C sector is ever increasing. So, how can you win in your niche?
The answer lies in Differentiation. So how do you stand apart from the rest of your competitors?
Millennials, for example, love to buy from brands that stand for a cause. Alternatively, you could make your brand voice and values one that your audience resonate with. Even taking small steps like ensuring your SEO efforts are up to the mark will help you retain more customers.
Think, what’s one thing you do differently than others in your niche?
4. Demanding Customers
With increased control over brand messaging and customer engagement, almost all brands are waking up to meet the rising challenges in pleasing the customers.
This means customer expectations are soaring high! What was once a “wow-factor” has now become the baseline.
This high expectation isn’t necessarily a bad thing for your brand. Understand basic human psychology: WE ALL WANT TO FEEL SEEN/ HEARD. We all want to feel important.
You don’t necessarily have to have high budgets to pamper your customer. Simple things like:
- Addressing each customer’s comments on your social media accounts.
- Implementing feedback and reassuring the customer of the same.
- Personalizing your customer’s experience across all channels.
- Running “surveys as campaigns” to gather data about your customers, then integrating this data within future campaigns.
Think, how can you personalize the experiences your customers have in each interaction with your brand?
5. Growth Challenges
- Facebook advertisement costs have almost doubled Y-o-Y 2018-2019.
- Social media platforms are getting crowded in every possible niche you can think of.
- Organic growth remains a challenge when we consider the time it takes to scale a brand.
These results can be disheartening, especially if you’re starting your direct consumer marketing. But, here’s all you need to remember:
- Content marketing is booming.
- Customers are getting wiser trying to wean out quality content from the rest.
- Social media still proves useful in building communities around your product.
Invest in content marketing strategies. Build content around your product in different formats: podcasts, blogs, social media posts, etc.
This will ensure a wide range of people connects with your message.
Think, what are five topics that can talk about the value my product brings to my customers?
6. Technical Infrastructure
- Within 24 hours of the first contact, 54% of your customers expect you to give them a personalized discount.
- 26% of your customers want higher security and greater user experience on your website.
- 22% of your customers expect you to provide them with a same-day delivery option.
Sure, when you look at D2C vs. B2C, there are many benefits of reaching your customers directly, but here are the technical aspects (infrastructure, means & modalities, etc.) of business that you’ll have to think of.
You can build your technical infrastructure by adopting MACH architecture (Microservices based, API-first, Cloud-native, and Headless). Ditch the legacy monolith systems.
Think, how can I future-proof my customer’s digital experience with my brand?
7. Omnichannel Shopping
- Up to 71% of in-store shoppers surveyed have reported that smartphones have become extremely important to their in-store experience.
- Add this to the fact, more than 45% of brands are already saying their top priority is creating omnichannel experiences for their customer.
- Your customers who shop both in-store and online produce a 30% lifetime value over other customers.
It’s no surprise that in 2022, your customers expect a seamless connection with your brand. As an example, customers check for discounts online while they’re shopping with you in-store.
Our expert tip would be to include a headless commerce architecture within your brand strategies. This means to decouple your backend services and UIs. It would allow you to handle your eCommerce functionalities in the backend.
Think, which APIs bring in flexibility in the front-end operations? Which custom interface allows for a seamless experience for my customers?
These were the seven most common challenges D2C brands face and our expert tips to overcome them. Stay tuned for other articles that will help you with proven & rewarding strategies to scale your D2C marketing efforts. For starters, check out this article on detailed strategies used by the leading D2C brands and trends and projections for 2022. We specialize in propelling vertically integrated eCommerce brands. We help you scale your ROI through our data-centered strategies that boost your conversion rates. Speak to our experts today!