Cut the middleman, and any business can earn a higher margin. While that sounds good, theoretically, most businesses in the past would rely on their supply chain to gain a better foothold in the market. This business model has worked well so far as businesses have achieved higher penetration without bothering about the 'last-mile delivery. However, the advent of the Internet and e-commerce has eradicated the need to work with retailers. Most businesses are turning their attention towards D2C or Direct to Consumer Marketing.
This business model has its challenges, and businesses used to working with retailers may face headwinds during the transition. That's when you need to work with a Direct to Consumer agency that not only has a deep understanding of the business model but can also help you work on custom strategies based on your business, the demography of your customers and the competition you are up against. A D2C agency would let you focus on your business's core areas while handling your marketing campaign.
Why Direct To Consumer Marketing?
Though doing away with the middleman and working with Direct to Consumer marketing agency assures you of increased profits and lesser costs, it isn't the only reason you should make this transition. There are several incentives that await your business with this shift, let’s look at some of them :-
- Always call the shots for your products
Brands dependent on retailers can't always call the shots in pricing, promotions or stocking additional products during the peak seasons. When you sell the products directly to the customers with help from a D2C agency, you can call the shots. There is no restriction in pricing or the deals you are planning to offer your end customers, which helps you compete hard with other brands in the market and increase your market share.
- Retain your business data
By selling through retailers, you will have to share your business data with the retailers constantly. Most of your data get sourced from your retail network. In server cases, manufacturers are at the mercy of their retailers when knowing who bought your products. In many cases, retailers aren't likely to share with you much more than inventory information. When you work with a direct-to-consumer marketing agency, you can bypass this retailer network and access critical business data to enhance your marketing campaign and improve your targeting and messaging.
- Upsell your products
Upselling is a sound business strategy as it allows you to increase your sales and revenue. When it comes to D2C selling, you will be able to sell additional products from your brand. While retailers do upsell, they necessarily don't always sell products from the same brand. Thus with D2C, you increase the odds of garnering additional sale opportunities.
- Get better customer insights
Suppose you are in FMCG products, apparel or likewise, you need to generate repeat business from the customers to thrive in the market. It calls for constant improvement of your product and the right pricing strategy based on customers' feedback. Retailers involved in multi-brand retail don't always prioritize passing on customer feedback to the manufacturers till it affects their business. By selling your products directly to the customers, you can leverage the direct association with the customers and offer them better products.
To conclude, D2C marketing is the way forward as you can leverage technology to overcome the hurdles in growing your business. A professional direct-to-consumer marketing agency can help you reach out to your end customers, earning their loyalty.
D2C Agency | Direct To Consumer Agency | Direct to Consumer Marketing Agency