DTC Marketing: Benefits, Strategies, and Examples
Choosing the right marketing path for your brand is a challenging task that involves considering multiple factors. Depending on what your final goal is, you might puzzle over different types of marketing like business-to-business (B2B), business-to-customer (B2C), click-through rate (CTR), or any other. And when you dig deeper, you will find even more strategies like ethical marketing, influencer marketing, or search engine marketing.
Today, we will uncover the value of reaching out to a client directly with the help of direct-to-consumer (DTC) marketing. If you are into the personal touch and discovering the customer journey from the inside, continue reading, and you will get DTC marketing explained in detail and with real examples.
What Is Direct-to-Consumer (DTC) Marketing?
When unveiling DTC marketing meaning, the first thing to highlight is that this type of marketing allows brands to approach customers directly. There is no need for intermediaries who target ads, promote your product, and then sell it. With the DTC model, the brands themselves become intermediaries and cope with all the processes of the sales lifecycle.
While it sounds like too many tasks rest on the shoulders of brands, there are a lot of advantages to the DTC strategy. The first advantage is that you can make more revenue as you will not have to sell your products at a discount to retailers. Also, you will gain total control over the processes of selling. That means you can learn more about your audience and look at their needs, pains, and expectations. Based on that knowledge, you can adjust some of your steps so you reach wider audiences.
DTC vs. B2C Marketing
At first glance, B2C and DTC types of marketing are almost identical. However, there is a difference between them. B2C strategies involve retail vendors, who do most of the marketing. They attract customers to visit business owners' websites and place an order. Also, B2C companies can sell their goods through other channels or physical stores.
However, in the DTC model, no one stands in the way of promoting and selling products directly to customers. Direct-to-consumer marketing is gaining popularity among companies and is expected to reach a revenue of $161.22 billion by the next 2024 year. So what are the strategies DTC offers? Let’s find out below.
TOP 10 DTC Marketing Strategies
DTC marketing combines various tactics that every company can choose individually depending on their goal. Below, you will find effective direct-to-customer strategies that, if mixed together, can significantly improve your sales funnels.
1. Creating Brand Recognition
Reaching out to customers with your great products and offerings is not enough. Before making a choice in your favor, they have to trust you. And the best way to turn your audience into a loyal one is to build brand awareness.
To win a customer, you should stand out in the market, as the number of online sellers is countless. Thus, when clients see your logo, they should associate your company with something good and reliable.
2. Adding Personalization
Customers who feel valued will return to your services to find that feeling. Personalizing your approach to every client is a perfect way to maintain that feeling. You can do this by sending customized emails.
Different types of emails are sent to customers: promotional, order confirmation, survey, and others. Adding personalization to them will catch the client’s attention and make your brand memorable.
3. Staying Active on Social Media
Everyone in the modern digital world spends at least some time on social media every day. And you can become closer by showing up in clients’ Instagram stories or tweets on Twitter. Moreover, you can share helpful content on utilizing your product to get the maximum value or give some life hacks showing how customers will benefit from choosing your company.
Particularly, sharing video tutorials on popular social media sites like Instagram and Facebook is a good way to show customers how to best use your product. By showing the basic functions, various features, and less-known tips, you provide value while increasing trust and interaction.
4. Collaborating with Influencers
Influencers have a strong power — people trust them and follow their advice. When public figures show that they enjoyed purchasing products from you, a part of their audience will visit your website and place an order just because influencers' recommendations are proven by their authority.
5. Reminding Customers About Your Brand
Sometimes it is worth a small reminder for a customer to make the final decision. Those who have come a long way and stayed on the checkout page can still proceed with a purchase. And your task is to have them make a positive decision.
As you gather lost customers, you should send them a follow-up email by reminding them what items they were viewing. This can work as a hook and bring you more sales.
6. Collecting and Showing Testimonials
Highlighting positive user experiences is vital. And you can achieve this by sharing what your customers think about your brand. Positive testimonials will show newcomers that your brand is the one to choose.
Also, you can encourage customers to turn to your company by testing products for free and leaving feedback about them. Send your regular customers your new offerings at no charge and ask them to share their thoughts about using them.
7. Going Offline
Did you know seven out of ten people consider what they purchase while driving? And showing your brand on a highway billboard can be a decisive sign for clients to choose sellers they give preference to.
Advertising your company on the subway, on the radio, or on television will never be superfluous. And it can’t fully substitute for online marketing. That is why you should consider different approaches to meeting new customers as a DTC brand.
8. Posting Creative Ads
Running commercials on billboards or online will not be enough if they don’t stand out from your competitors. Creating unique ads will help get viewers’ attention and make your brand more recognizable. For that purpose, you can make use of the PPC campaign.
9. Analyzing Feedback
Choosing a DTC marketing path is about having control over all the data about the audience, their interactions with your company, and their expectations. Thus, such valuable information can help you adjust the targeting for your future ads and reach more interested customers.
By analyzing what tactics work better for your brand, you can greatly improve your actions and grow your sales.
10. Providing Customer Support
Nothing can be more personalized than a dedicated customer support team. And the value of hiring support agents cannot be underestimated. Your customers may face various issues when purchasing and using your product. So there should be representatives of your company that can help clients resolve their problems.
DTC Marketing Real-life Examples
Following the tactics of brands that have already implemented a DTC marketing strategy is the best way to learn. In this section, you can find examples of real companies that took advantage of connecting with customers directly.
This beauty brand has chosen to market through influencers. They did a huge amount of work by promoting their products via public figures who shared positive feedback with their audiences. When customers think about where to purchase another moisturizing cream, they will include Glossier in the list of brands they think about first.
The founders of Casper identified the clients’ pain, which is spending too much time deciding which mattress is better for their sleep. And they focused on resolving this issue in their commercials and through social media. Also, their policies are very profitable: clients can try mattresses for free and return them within three months if the products don’t suit their needs.
Barkbox is a great example of another interesting DTC channel. They focus on their target audience, dogs, and publish those pets everywhere in their commercials. Sometimes, they specifically attract dogs to their brand, not dog owners.
To get clients’ attention, you sometimes have to melt hearts. This is what Bombas did: they made a generous offer and provided a lot of homeless people with socks. And even now, when you buy an item from them, you donate another pair of socks.
Dollar Shave Club
When you ask “What is DTC marketing?”simply explore Dollar Shave Club website and track their achievements history. They used storytelling as their main strategy and won many customers, which turned them into millionaires. Their ability to effectively communicate their brand message played a pivotal role in their exponential growth.
Everlane, as a DTC brand, has chosen to promote itself as an eco-friendly company. They have launched an initiative to not use plastic in producing goods. Until 2050, Everlane is planning to completely avoid emissions. And such tactics have won them many young customers with the same values.
One of the most creative examples of ads you can find on the Chubbies website and social media This brand provides menswear but sells it so that everyone can enjoy it. They post hilarious photos and videos that are down to earth. Not the ones with perfect models and bodybuilder-like figures.
Warby Parker has incorporated many tactics into its direct to consumer marketing strategy. Customers adore the feature that lets them virtually try on glasses on their app and donate one pair of glasses to someone in need with every purchase.
Marc’s Magic Rub
This company sells food, from spicy chicken wings to delicious ribs. And their main highlight is their story. Marc’s Magic Rub was created by the father of the family, who loved food and cooking. He lost his battle with cancer, and the business he founded lives on. Thus, the brand emphasizes love for family as its main engine of progress.
Joggy promotes plant-based energy drinks that can help maintain energy throughout the day. This company is approaching advertising in a very creative way. Visiting their website makes you feel like you play a game: everything is neon. Also, they have a community you can join to get purchase bonuses.
DTC Marketing Metrics
To determine whether you are building a successful DTC strategy, measure it with the following metrics:
- Customer lifetime value (LTV);
- Number of new customers and those who return to you;
- Number of orders;
- Average order value (AOV);
- Conversion rate;
- Churn rate;
- Monthly recurring revenue (MRR);
- Net promoter score (NPS);
- Customer acquisition cost (CAC).
When you track those metrics regularly, you can ensure you are going forward or correcting your current tactics.
Direct-to-consumer marketing is a solution for brands that want to be closer to their audience. This is about creating a direct connection between you and your customers. And this approach has many pros.
By choosing a DTC path, you also stay on track and can control every step of the selling process: advertising, attracting new customers, working with regular ones, etc. Look at the examples of successful DTC marketing approach implementation and boost your sales numbers incredibly fast.
DTC Marketing FAQs
What is direct to consumer marketing?
This strategy literally means a direct connection with customers. As a business owner, you will have to do all the tasks yourself, from advertising your product to reaching out to customers. However, this gives you more control over the whole process and more revenue, as you don’t have to sell your product cheaper to online retailers.
What are the tactics the DTC approach consists of?
Direct to consumer marketing consists of tactics like promoting yourself on social media, involving influencers, building email marketing campaigns, using storytelling, and many others. And you can get the best from them and build yourself the most suitable strategy.
How to find out if I’m on the right DTC path?
For that purpose, there are special metrics you have to track to see whether you are making progress. They include conversion rate, average order value, monthly recurring revenue, number of new and regular customers, chunk rate, and obviously, number of orders.