What Is Direct-to-Consumer, and Why Are Brands Doing It?

What is direct to the consumer, and why has it become increasingly popular among many brands?

Direct to the consumer can be defined as a type of platform that sells directly to the customer without any intermediaries. It means that the brand can contact its customers directly, avoid any commission fees, have more freedom to establish and customize their ordering platforms, and have more financial control.

Since the pandemic, on-demand ordering platforms have become increasingly popular due to the growing demand for online delivery. Many people did it out of necessity, not only out of convenience. For example, online pharmacies and grocery delivery were a lifesaver for many people who could not buy necessary things.

However, aside from the necessary conveniences, on-demand delivery has also become an excellent way for brands to gain more exposure and offer their customers a new level of service.
For example, food franchises used this as an opportunity to increase loyalty among the current customers and implement special offers and discounts.

What are the benefits for brands to implement a D2C platform?

Emotional connection with the brand

As an established company, having your D2C platform gives you complete control over direct customer communication and the ability to depict your business any way you choose. When customers walk into a shop, they want to experience a sense of belonging to the brand, from the visual characteristics to the distinct service and uniqueness.

This in-store experience fosters a strong emotional bond with the brand, which leads to customer loyalty. Having your own direct-to-consumer platform gives you more options in terms of product display, distribution, and direct engagement with customers.

One of the advantages of having a natural platform for businesses is developing loyalty programs, discounts, and newsletters, directed towards a specific customer niche.

More control over the profit margin

Another beneficial aspect of having a direct-to-consumer platform is having more profit margin and pricing control. Using third-party retailers means that the pricing is highly limited and determined by the commission costs and other service fees.

More and more brands, including well-known franchises, such as McDonald’s, are opting for a direct platform that will enable them to set affordable prices for the customers and bring in a more significant net income.

Several metrics can be used to estimate the profitability of a D2C platform. One of those metrics is the customer lifetime value (CLV). This metric can allow you to estimate how much money a single customer will bring in over their relationship with your business. Having a D2C platform enables a longer relationship with the brand. The customer is solely focused on choosing from your selection of products and does not experience the phenomenon of over choice.

The competition on a primary retail website, such as Amazon or UberEats, is large and leaves the customer minimal time to pay attention to your product options. Having a D2C platform allows you as a business owner to

Customers prefer direct purchases.

Recent statistics show, that 88% of customers prefer to buy directly instead of through large-scale retailers. Why is that? Large retail has a long supply chain, and direct communication with the customer is rarely implemented.

The majority of the time, the direct-to-customer platforms offer more direct contact options, which prevents the customer from going through a long, automated chat or waiting for an answer for more than one working day.

Additionally, retailers do not have specific technical knowledge of every single product. Having access directly to the manufacturer or the restaurant sales department makes the customer feel more cared for in case of any questions, concerns, or returns.

Control over messaging, data, and omnichannel experience

Aside from the direct connection, another benefit of D2C comes from data ownership. Companies can monitor their customer’s preferences more effectively, for example, by checking statistics regarding how many visitors go to a particular product page throughout the day and how long they spend on it.

Also, having an omnichannel experience focused on a particular brand is more effective than regular retail. It upgraded the overall user experience and created a platform that enables the company to take care of every touchpoint throughout the customer journey.

Are you looking for the right tech to implement a D2C platform?

Look no further. A platform like Ordering is the perfect starting point for any business size.

The technology includes an easy-to-operate order management system and simple and effective communication between the company and the customer.

Additionally, you do not need to be a tech expert to operate the system efficiently. Contact order today and check out their amazing options.

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