Did you know? By marketing directly to the right customer base through D2C (Direct to Consumer) marketing and communicating the right message, you can avoid sending canned mass messages to customers and increase customer retention rates. According to statistical data, increasing customer retention rates by just 5% can result in a brand profit increase of more than 90%!

To implement D2C, companies rely on regular membership management. A complete membership database can help brands more accurately differentiate target audiences, find the right entry points, and communicate with customers from different ethnic groups!

GoSky AI 2023 Key Report: https://go.goskyai.com/4qmb8w/

What is D2C (Direct to Consumer) marketing?

Different from B2B and B2C, D2C (Direct to Consumer) marketing directly targets customers, meaning that businesses do not go through traditional distributors, advertising platforms, or intermediaries, but rather directly deliver their products to customers through their own media (Own Media), allowing consumers to directly interact with the brand and experience personalized products and services.

Unlike traditional marketing, D2C marketing is data-driven. Brands construct a complete customer journey centered around "customer demand" and use social media, membership mechanisms, CRM customer management systems, and even AI artificial intelligence to obtain customer behavior data and develop marketing plans for specific customer groups. Finally, through the design of membership systems, such as membership points, coupons, and membership grading, brands deepen their relationship with customers to create a membership economy!

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What are the benefits of D2C (Direct to Consumer) marketing for brands?

Elimination of high commission fees charged by intermediaries

Although setting up a shop on an e-commerce platform can bring sales performance to a brand in its early stages through the platform's traffic and its own marketing resources, in recent years, the commissions charged by these platforms have become increasingly high. The commission rates of online store platforms like Amazon and eBay are both over 10%. The e-commerce platform takes a cut of the merchant's profit. If companies choose to pass these additional costs on to consumers, it will lead to higher prices for consumers to buy products.

By eliminating the profit-sharing of intermediaries, brands can offer more favorable prices to consumers and improve customer satisfaction.

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Improvement of consumer brand loyalty

The sales model of D2C marketing enables brands to directly collect first-hand consumer behavior patterns, such as consumer age, gender, and preferences, in various channels. This allows the brand to quickly discover the product pain points that customers encounter and optimize product functions or marketing strategies, followed by launching more precise marketing centered around enhancing the customer experience to improve brand loyalty.

Four recommended actions for D2C (Direct to Consumer) brand marketing

Provide more accurate marketing experiences

Since the consumer journey has shifted from being linear to constantly exploring and evaluating, brands need to continuously increase interaction frequency with consumers and use a wide range of channels, such as social media, official websites, and apps, to reduce customer contact points. Brands should layout a complete D2C shopping environment, create more sales opportunities, and flexibly use different marketing strategies to manage customers with different levels of relationship to gain consumer mindshare.

Focus on consumer experience and brand data assets

Pay attention to data integration and application, flexibly use consumer behavior data analysis obtained through different channels, or integrate marketing automation tools such as MarTech. Through in-depth customer data analysis, provide highly relevant precise marketing content, create a clear and straightforward interactive process with a clear target audience, satisfy the shopping habits of different customer groups, and improve short-term sales conversion and long-term customer lifetime value, making "data monetization" more efficient.

Cultivate long-term relationships with customers

building a brand community through private traffic pools on communication software services, such as introducing more subscribers to the brand's own media (Own Media), including social communities, blogs, LINE official accounts, EDM, etc. This can reduce the difficulty of communicating with customers and effectively convey the brand image and values. It is suggested that brands try out gamified interactive mechanisms and membership grading systems combined with digital point accumulation to cultivate loyal members and establish a positive growth cycle through point systems.

Create a member economic ecosystem

According to the Pareto Principle (80/20 rule): about 80% of a company's profits come from 20% of its key customers, who continuously revisit and bring in new customers through word-of-mouth promotion. By combining a "membership management system" with tasks such as point collection and revisit discounts, brands can deeply engage with familiar and loyal customers, creating a continuously circulating member economic ecosystem to increase long-term sales performance.

For more secrets to building a member economy, check out the GoSky AI 2023 Key Report: https://go.goskyai.com/4qmb8w/