DTC or D2C marketing was first used in the US in 1981. It refers to a strategy in which a company sells products or services directly to consumers, without an intermediary.
Over the past 40 years, DTC strategies have evolved and adapted to new technology. In a 2019 survey conducted by CommerceNext, over 75% of D2C digital retailers indicated that their e-commerce budgets were higher than the previous year’s. D2C eCommerce sales in 2019 reached $14.28 billion in the US, and are expected to grow by 24.3% this year to $17.75. A report by Yotpo on the “State of D2C Marketing” in 2019 states that spending has increased in 2019 vs 2018 on Facebook, Instagram, and Google ads, and that brands are investing in experiences that foster confidence, community, and connection to the brand.
Voice marketing is growing as a prevalent part of D2C strategies, with over 118 million smart speakers in US homes representing a 78% year-over-year growth. If you haven’t yet jumped on the DTC bandwagon or if you just want to up your game here are some fundamentals you should consider implementing.
There are three main types of DTC or D2C marketing:
No matter which type of DTC marketing is being used – and for which industry – their overall goal is to inform or remind consumers about a product or service and their need for it. In general, DTC marketing is used in print, TV, radio, social media, and other forms of media.
First and foremost, DTC marketing is meant to increase sales and profits. This can’t be done without creating a great and memorable experience for consumers at the other end of the ad. There are a few key tips to keep in mind in order to achieve this:
If you’re a marketer planning to use DTC ads in the future, here are a few tips to consider:
For companies that rely on DTC marketing, you’ll need to increase your overall branding efforts.
This is because markets are becoming overcrowded with ads, while the cost per action (CPA) keeps rising. Outbidding the competition will no longer suffice. This is especially true for small and mid-size brands.
The thing to consider with DTC is that you don’t have another brand to rely on so you must build your own.
As we all know, Google and Facebook are here to stay. While the average cost-per-acquisition will likely increase, PPC campaigns still offer powerful targeting tools that will help you reach your target customer. The good news is that smaller players can still compete by finding smaller niches that the larger companies can’t target. Small companies can make specific offers to a very specific subset of people, which large brands can’t do.
For medium and large brands, it would be savvy to get on new, potential channels quickly, especially as new social media platforms and consumer marketing channels are emerging at an increasingly fast pace. While it’s a challenge to know which one will turn into “the next big thing”, there are channels that are clearly growing and are going to be “must-have” channels in the near future. Bring customers to channels you control.
Email can be an influential channel for direct-to-consumer marketing efforts because you can easily and fully control it. A well-maintained email list can be a valuable asset to any business, as it provides the means to start and nurture a direct connection to consumers. Another option, Facebook Messenger marketing, and chatbots offer less control but the higher potential for click-through rates (as much as 88% open rates as well as 56% CTRs).
There is also SMS marketing, which promises impressive results: it earned 592% higher order rates than email. The best approach to boost engagement rate and sales is to combine your marketing channels.
Your brand presence is critical to increasing sales. This includes your website and online presence on social media networks. For the past decade, having a mobile site has been just as important, and these days is a must to ensure your consumers can find you online.
Just like mobile, “voice” is catching on very quickly and is expected to quickly be a must-have in your brand presence. The voice channel enables consumers to search for, access, and purchase from brands using voice-activated devices like Alexa, Google Assistant, and Siri. Creating a voice presence, or voice shop opens you up to a whole new group of consumers, provides your existing buyers with a better buying experience, increases return sales, and keeps you one step ahead of your competition as you get on the wave before everyone does.
Whatever type of DTC marketing suits your marketing needs, be sure to keep in mind – and follow – the fundamentals behind it, as well as future trends, to get the most benefit out of it.
If you don’t own a voice store yet and you want to hear about extending your online store’s capabilities and have a presence on voice assistants, such as Alexa and Google Assistant. Schedule a free demo today with Rep to unlock the power of Voice!