Ultimate Guide To DTC Marketing Trends 2023

DTC Marketing

Marketers aim to increase brand awareness and sales while keeping customer acquisition costs low. DTC marketing is a great way to do this.

While retail marketing models are still strong, direct-to-consumer (DTC) marketing is becoming an increasingly attractive option. Direct-to-consumer brands have the opportunity to interact directly with customers. They also have better control over prices because they don’t have to sell their products at a significant discount to retailers.

While partnering with a large retailer has benefits, the DTC brand has some benefits by owning its marketing channel:

  • More control over product branding, positioning, marketing, and distribution channels
  • Our data about our customers helps us better understand who the buyer is.
  • Faster time to market new products at lower prices.
  • Higher margins because you don’t have to sell products at discounted
    prices to retailers.

DTC brands are more active in terms of marketing. They need an immediate prospect that a giant retailer like Walmart can offer. So PROS uses a variety of strategies to promote your business, such as Influencers Marketing, SMS Marketing, Community, Email, etc.

At its core, Direct-to-Consumer (DTC) marketing integrates all the ways brands market directly to consumers, rather than mid-retail business marketing for brands. For example, retail brands such as Amazon and Walmart promote Sony and Levi’s, while DTC brands such as Warby Parker advertise their products directly to consumers. It advertises its products to potential customers, completely cutting out the middleman.

What is DTC Marketing
What is DTC Marketing

DTC brands have better control over customer relationships, but this means managing more sales workflows, including branding and marketing, as well as shipping and customer service.

Direct-to-consumer companies need to take a more proactive approach to promote leads because they need to get them to buy directly from them. For example, DTC brands typically have a strong presence in social media and other marketing channels such as email, SMS, and push notifications.

Benefits of D2C ( Direct-To-Consumer )
Benefits of D2C ( Direct-To-Consumer )

You want to control how your products and brands are represented in the marketplace. Marketing DTC products are unique intersections of value propositions, branding, and messaging that no one else can compete with.

Lexie Becker, a brand partnership expert at Fifth & Co, a Shopify partner, explains: The customer does not compare you to someone sitting next to you on a shelf. They are seeing you and how you can help them.”

“The customer doesn’t compare you to someone sitting next to the shelf. They are seeing you and how you can help them.”

The business model that operates the DTC provides the opportunity to maintain higher margins. By producing and marketing your products, you gain more money from your business than you send to suppliers.

“The benefits of the DTC model are primarily focused on a highly measurable unit economy that can be extended through digital channels to build brand awareness and attract more customers.

“This includes good gross margins as there are no wholesalers that have traditionally made significant gains in traditional retail. Transparency in the digital channel also creates greater confidence in how capital is used, which is especially valuable in the economic downturn.”

“The most powerful marketing campaign is the data king,” says Stephen Light, founder of DTC mattress retailer Nolah. From his perspective, DTC marketing provides much more access to its data than working with retailers.

The DTC brand has access to the following data:

  • Web browsing behavior
  • Subscriber data
  • Social media data
  • Purchase information
  • Cross-platform data
  • Surveys
  • Feedback

This information helps you understand the customer journey from start to finish, so you can build more personalized marketing campaigns that lead to sales. “The DTC Business Model allows companies to reach customers directly, enabling them to better understand their audience and market more specifically.

Business-to-consumer (B2C) companies should also market to consumers, but typically sell online and/or through actual retailers. With that in mind, you don’t have to engage customers in your store or website to generate sales. Retailers do a lot of marketing for them.

Direct To Consumer Marketing
Direct To Consumer Marketing

B2C stands for business-to-consumer (B2C), which means selling products through intermediaries such as large box stores. DTC stands for Direct to Consumer and means selling products and services directly to consumers without a third party.

  • However, digital marketing practices are rarely stagnant for a long time, and epidemics have extended many traditional B2C brands to a DTC approach.
  • More and more companies are beginning to rely on B2C marketing to survive in a rapidly evolving market.

It is impossible to have one marketing strategy for all situations as each DTC brand has a different image and different target. However, most DTC companies use a mix of the following tactics to maximize their promotion and sales

D2C Marketing Strategies
D2C Marketing Strategies & Direct Marketing Channels

Social Media Marketing

Social media marketing is particularly effective for companies that are not limited to DTC business but rely on a direct relationship with buyers. By consistently posting unique and valuable content, you can help attract more social media users and retain your brand engagement.

You can also import user-generated content from your followers through the presence of powerful social media. For example, you can ask users to post their photos of using the product with the hashtag associated with the brand.

Personalized Emails

Opt-in channel email is especially important to D2C business. Increasing your email list is one of the best ways to generate more sales. It may take some time to convert new email subscribers to customers, but a well-managed email list will produce the desired long-term results.

  • For example, Omnisend’s automation tools were key to helping Kerrits increase 50% revenue per email over previous numbers.
  • Their new workflow includes several automated messages, including a welcome email, cart abandonment notification, seasonal newsletters, order confirmation messages, and follow-up to rejoin.
  • Automated email takes personalization to the next level.
  • Traditionally, personalization of email is standard {FirstName} in the subject line or body.
  • However, automation means that email will only be sent after the shopper completes the task. This timely email is much more effective because it is sent in response to the shopper’s behavior.

Influencer Marketing

Authenticity is an important element of branding, but building a strong brand image is not always easy. With Influencer Marketing, D2C businesses can leverage the existing reputation of the Influencers.

  • As a DTC vendor, the most important thing is to find an infuser that matches the brand image and makes the right impression on the audience.
  • You should also ensure that prospects match the consumers you typically sell to in terms of basic factors such as age, gender, and location.
  • One of the main benefits of Influencers Marketing is that you pay for the results instead of paying for the exposure.
  • If a particular Influencer does not generate a lot of transitions, you can simply terminate the relationship without losing too much money.

Brand personality

Brand personality is one of the most valuable resources for D2C business. Your unique brand image will remain on the head of the lead and make you think about the next time you need one of your products.

  • Of course, over time, you need to develop your brand personality across multiple channels.
  • Large teams should consider implementing style guides and standard visual objects to ensure that content appears the same across all platforms.

Social Activism 

Commitment to social causes, along with lower prices and more convenient experiences, is another major reason why many young consumers are attracted to DTC brands rather than retail models.

Personalization

Consumers are more likely to buy from brands that offer personalized experiences by presenting products that are highly relevant to their needs. 80% And it’s an important investment channel along with the technologies that we can use.

There are many ways to personalize the customer experience, from displaying similar products on product pages to creating profiles that hold data about the customer’s buying behavior on the website.

Community Building

Building a community around your brand is a huge achievement. If you can create an online community of dedicated fans who love and unite your brand, it’s special. However, it is always a good idea to try.

Whether you’re creating a Facebook group for your customers, organizing an affiliate program, or launching a forum around your brand, there are many ways to build a community.

SMS Marketing

Text SMS marketing is one of the new marketing channels that is going on around the world. Many brands require personal mobile phone numbers to send short marketing messages, product release updates, sales and discount notifications, and more.

Word-of-Mouth Marketing

Using word of mouth as a marketing channel, the D2C brand can encourage customers to talk to others about their products and experiences.

Loyal customers can be created by writing reviews, being rewarded for sharing your brand on social media, or providing exceptional customer service and creating a positive brand experience to share with family and friends.

Social commerce
Social commerce

Social commerce has skyrocketed in recent years, with global sales of more than 4 $92 billion in 2022. Platforms such as Instagram, TikTok, and Pinterest make it easier for brands to sell their products on the social platform itself.

Most of these trends are driven by mobile shopping. According to our data, 72% of Black Friday sales of $2.9 billion in 2021 were on mobile, an increase of 67% in 2020. DTC brands are investing more in social platforms as people are more comfortable buying on social platforms.

Video content was the basis for DTC marketing. Whether you’re producing eye-catching TikTok videos or running video ads, 92% makes video marketing an important part of your strategy. For the newly launched DTC startup, TikTok has become the primary place to find new customers.

Consumers also believe that video is the most useful form of content. Video can help you imagine how consumers are using your products and drive sales.

Video Marketing
Video Marketing

But what type of video content does the D2C brand create? There are four:

  • Behind the scenes of how products are made and how the company operates
  • Employee profiles that provide background stories for different employees
  • Product demonstrations showing real-world products
  • User-created content that shows customers using the product

“Both social platforms and consumers are constantly shifting to their favorite video content,” says Lexie Becker, a brand partnership expert at Fifth, and Co, a Shopify partner. “Whether you’re investing more resources in your TikTok account or Instagram, where the algorithms often mark Reels, video content is a popular choice for consumers.

Another trend in the DTC space is brand partnerships – a collaboration between brands and products/services that complement each other rather than become direct competitors. In general, DTC startups are embracing recent partnerships as a cheaper way to win new customers compared to running Facebook and Google Ads.

Brand Partnership
Brand Partnership

Brands can benefit from reaching potential partners who align with brand image and value and delivering what is truly valuable to other companies. Brand partnerships are based on real, true connectivity and are best in a win-win scenario for both.”

“Brand partnerships are based on real, true connectivity and are best in a win-win scenario for both.

TV ADS
TV ADS

Despite the added price tag, the DTC brand is testing traditional media channels such as TV spots and even connected TV (CTV) ads. Digital native brands are reallocating social media spending to TV ads because of the decline in Facebook transitions since Apple’s release of the IOS 14.

Competition is intense as DTC vendors continue to emerge. To stand out, use the following best practices:

Create a strong brand identity

Good branding leads to brand awareness, which is a key factor in the company’s success. When a customer is aware of a brand, they are much more loyal to that brand.

So the first step is to create a strong brand identity. This typically consists of:

  • Logo
  • Colors
  • Fonts
  • Voice and messaging
  • Packaging

By creating a brand identity that is visually appealing and empathizing with your target audience, you can create a customer base that is more visible and robust than your competitors.

Build out your buyer personas

Who is the target customer? This is important information when creating a DTC marketing strategy. After all, if you’re creating marketing messages for the wrong audience, your strategy will fail.

  • The problem is that too many brands create superficial buyer personas that do not tell who the target audience is.
  • Yes, basic demographic statistics such as age, gender identity, and income are needed, but they need to be further penetrated.
  • Consider completing a customer survey sent to your email list or working with a market research company to build a buyer persona.
  • This provides information such as the marketing channels used by your target customers, buying patterns, and how they feel about your product or industry as a whole.
  • Use this information to get data on where to build your online presence and the types of messages that drive customer empathy and purchase.

Diversify your marketing channels

By diversifying your marketing channels, you can reach as many audiences as possible. Of course, Facebook has more than 2 billion users per month active, but that doesn’t mean you want to stop there.

The marketing rules in 7 require consumers to listen to the brand message about 7 times before making a purchase. You are more likely to do this by posting content, advertising, and other marketing messages across multiple touch points.

Take Advantage of Digital Advertising

One of the reasons social media marketing is popular is its organic and viral potential. However, it can take time to build and reach organic followers.

  • This is where digital ads come in.
  • We have already mentioned that a significant amount of capital is needed to be successful with DTC companies.
  • Many of them will go to digital advertising campaigns, especially at the beginning.
  • Ads can work at any stage of the funnel, whether they reach a potential customer for the first time or re-target visitors to the website to encourage repeat visits and purchases.

Get creative with your marketing content

As you can see in the next section, creativity is essential to introduce some examples of great DTC marketing. There’s so much content online, in your inbox, and on your phone that you can ignore just the promo content.

  • “Creative messaging and copy are more important than ever,” says Eppinger.
  • Executing these various hooks and proposals to a broad audience forms the basis for the most effective targeting methods, giving the algorithm the ability to find prospects with the most potential for conversion.”
  • One of the best ways to create content is to consume a lot of content.
  • See what your competitors post and think about how you can do better.
  • Look at what content creators and influencers post, especially if their prospects match you. Pay attention to trending topics, online memes, and other issues that may be relevant to your industry.

There are many ways to market and increase sales of DTC brands, from Influencers Marketing to SMS. There are some challenges, such as building an omnichannel presence and investing in leading resources, but the key is to use our data to personalize each customer’s experience.

In addition, when you try out these various DTC marketing initiatives, don’t expect them to be perfect immediately. DTC brands can leverage defects and criticism to look more human and friendly than traditional mega-retailers.

It’s also a great way to communicate directly with your audience, respond to their comments and concerns, and show them how to incorporate their feedback into their products. Contact Us Today DTC Marketing Services.

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