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5 D2C Models for Scaling Brands to New Heights


October 21, 2021
6 MIN READ
Vinculum
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Vinculum
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Overview

A magnanimous customer base, who are loyal towards the brand, and come back time and again for repeat purchases, who are willing to be enthusiastic brand advocates – now this is a dream come true for most brands. Can’t agree more? While customer success has always been the holy grail and one of the prime objectives for brands, with the advent of the Direct to Consumer concept, realizing the same has been easy.

Though the concept of D2C is still in a nascent stage, many brands have embraced it, and already made the most of it. Quite inspirational, don’t you think? Are you a firm believer in legacy systems or conventional processes? If yes, then it’s time to change your perspective, and think differently. Now, you have the opportunity to directly reach out to your customers wherever they are already dwelling. Now, this is the beauty of being digitally native.

Before we launch our discussion into the 5 Direct to Consumer models that can earn your brand great revenue streams and an army of loyal brand advocate customers, let’s learn why the concept of D2C is so intriguing.

Why D2C?

Customer Connect Opportunities

Let’s step into your customers’ shoes, metaphorically. Would you not love the opportunity to directly interact with the brands from whom you are buying? How great it will be to directly reach out to the brand representatives for addressing queries or concerns? Well, if your responses are affirmative, you have got the initial steps clear. Today’s tech-savvy customers are looking for easy, quick, and hassle-free brand and buying experiences. And, with Direct to Consumer, you can ace it. By interacting directly with customers, you can get access to a plethora of primary, secondary, and tertiary customer insights, which can help you further reshape your marketing strategy.

No Splitting of Profit

If you have been a legacy player in the marketing ecosystem, you would understand the swath of intermediaries – wholesalers, distributors, retailers, etc. You might have been sharing chunks of your profit with these third-party entities for years altogether to get your product in the market and to the customers’ doorstep. However, with D2C, you can directly sell to customers, and address their concerns to foster engaging relationships. And, all these without having to share your profit margins.

Greater Customer Acquisition, and Retention Opportunities

In today’s ever-competitive business environment, as a brand, you will need all the reinforcement to stay on the top of the mind of your target customers. And, data and the derived actionable insights are your greatest support system to ensure the same. With Direct to Consumer, by directly interacting with your target customers, you have more opportunities to understand their expectations, up-sell, cross-sell and even remarket your products. Besides, it also paves the way for consistent, seamless, and engaging relationships that equate to great revenue streams.

All About the Top 5 D2C Models

If you are new to the concept of D2C, you might be apprehensive about its efficacy, and all it entails. Well, there is still room for you to change your perception. D2C is so vast that there is a possibility that you have only uncovered the tip of the iceberg. Well, worry not. Here are the top 5 D2C models that can help you take your brand to a whole new level.

Direct Sales – This model is definitely a welcome addition for most legacy as well as budding brands. They can enjoy great customer connect opportunities, revenue streams, no splitting of profit margins by eliminating the middlemen from the supply chain. They can take sole responsibility for producing and dispensing their products to the end customers. However, brands have to contend with the hassles of end-to-end distribution, cancellation, and returns.

D2C – Channel Redirection

No matter how many breakthrough innovations hit the market, brands have an affinity towards existing systems. It is needless to say that these are the comfort zones that brands might not wish to venture away from. And, Direct to Consumer certainly does not intend to insist on the same. Brands can still interact and engage with customers directly, help them move further in the sales pipeline, and then present them the opportunity to make the purchase as per their convenience – either directly from brands or in-store purchases from retailers or wholesalers and other distribution channels. This way brands stand a chance to retain customers’ trust, and goodwill while not burdening themselves with the hassles of distribution, cancellation, and returns.

Marketplace-Driven Direct Sales

While we have been highlighting the pros of D2C, establishing a digital presence is highly pivotal for ensuring D2C success. And, establishing the presence may take longer than anticipated. Marketplaces are great platforms for brands that are aiming to tap into the unlimited potential of customers in a short period of time. Marketplaces always come with great visibility, a wide array of loyal customers, and all the tools/technologies needed to cater to customer buying demands. D2C when combined with the marketplace model can boost the success stance of brands.

The D2C and Retail Combo

Retailers have been integral in the supply and distribution ecosystem. And, brands, especially the conventional ones might be hesitant to let go of this crucial entity. Adopting the concept of Direct to Consumer does not mean that you have to rule out retailers altogether. You can still forge a collaborative relationship with retailers while interacting directly with the customers. Joining hands will enable D2C brands to have targeted visibility into their intended customer segment.

Social Commerce

The concepts of “know-it-all”, and “try-before-you-buy” have been becoming rapidly popular among the customer segments. And, social media and live shopping platforms are fueling this trend substantially. Social media handles have been offering greener pastures for brands to promote their products and encourage consumers to move ahead with their purchases. And, when it comes to establishing a digital presence, social media can be the ultimate destination for budding Direct to Consumer brands to make their presence felt.

We hope the article has been informative so far. For further queries or curiosity, do reach out to the D2C experts at Vinculum today!

 

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