December 6, 2022

CX Master

Service Matters – Learn What Works!

What You Must Know About Direct-To-Consumer Customer Experience

The Direct to Consumer (DTC) market is booming with many companies and consumers both realizing immense value from the new paradigm shift.

Consumer purchasing trends are evolving continuously and after the pandemic, the future of retail has been shaped in the favor of e-commerce. The shift to online shopping has increased by more than 15% in the US after the outbreak of Covid-19. This shift from traditional shopping in fancy outlets to feature-loaded E-Commerce stores is expected to rise in the post-pandemic era as consumers much enjoy putting items in the online shopping cart.

To keep in line with the boom in online stores, consumers are expecting an exceptional consumer experience as many brands are shifting to the direct-to-consumer business approach in response to the shift in buying patterns. Brands are still relying greatly on digital sales, and they are driving value directly from consumer engagement.

How Does Direct to Consumer Benefit CX?

Direct to Consumer (DTC) brands have created a frenzy in the retail market and with their creative approach to digital advertising, they are dominating commercial breaks on TVs and other prominent advertising channels. It greatly benefits customer expectations like:

  • Offers Customers Access to Your Products and Services – Any brand’s digital touchpoints act like a window that offers customers insights about a brand’s offering, support, and service. They act as a reliable source of information regarding the product and offer consumers access to a complete product range.
  • Showcases Authenticity and Originality to Your Customers – Most consumers develop an emotional link with a brand or a product and that is one of the strongest convincing powers that persuade a consumer to make a particular purchase. Consumers trust the authenticity and originality of the brand. When purchasing exclusive products from high-end brands, consumers prefer purchasing directly as it offers them a certain reassurance that they are avoiding any risk of counterfeit.
  • The Optimal Online/Offline Hybrid – It gets very difficult to find the right balance between creating a strong online and offline presence because brands fail to do so, they lose their worth in the eyes of existing and potential customers. Today, customer experience is becoming increasingly hybrid and the customer support is located in different locations, and the interaction span over different times. But a brand’s DTC presence ensures that customers have all essential information they need about the product, even if they end up buying the same product from a retail partner.

Drive Value with DTC

Streamlines Digital Customer Experience

DTC brands witness consumer behaviors first-hand and they acquire first-party data that allows them to personalize their offers and understand the purchase path in greater detail. This allows them to obtain plenty of information required to make customer experiences smoother and more connected. Brands can maximize their visibility and re-engineer their approach by engaging with customers.

Complete Control Over Customer Relationship

DTC brands have the opportunities to build trust and deeper connections with consumers and turn them into long-term advocates and not just mere buyers. DTC brands own customer relationships without solely relying on third parties. There is a grave risk associated with such dependence as third parties tend to tarnish a brand’s reputation and image. With a successful DTC model, brands are able to build deep connections with customers and share mutual values.

You Get to Learn Everything About Your Customers

With a DTC business model, you don’t have to worry about not having a meaningful and detailed conversation with your consumers. Traditional retailers have the edge of interacting with consumers, but there was always this blind spot around consumers’ behaviors, attitudes, and preferences. But with the DTC approach merged with digital technologies, brands are adjusting their lens and are learning about customer needs and are meeting them. They are learning about customers’ history, sentiment, and previous purchasing patterns, to formulate the perfect purchase experience.

Subscriptions and Shared ownerships

DTC is putting subscription-based products under the limelight and consumers are loving it! With DTC’s revolution, new approaches to shopping are being introduced; marketers and CX leaders are creating experiences that are effortlessly syncing with our preferences. The new normal of retail is being introduced and companies like Uber and Airbnb are leading this initiative right to success. Why purchase a car when you can book a convenient ride at affordable rates? Why book a hotel room when you can stay at somebody’s house for much less and enjoy a home’s ambiance? These new business models are changing the landscape of DTC and with that customer experience.

Wrapping It Up!

The market is becoming saturated but the scope for DTC businesses to grow is also on the rise. As long as businesses can find their unique brand voice and deliver their idea of customer service to the target audience, they will be able to take their sales globally. Direct to Consumer business model is the future and with the right vision of customer service linked to it, this model can easily outshine the rest!

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Hutch

I am an ITIL Expert and extremely passionate about customer service, customer experience, best practices and process improvement. I have led support, service, help desk and IT teams as well as quality and call center teams in Canada and the UK. I know how to motivate my teams to ensure that they are putting the customer first.