Four Consumer Trends to Help Drive Your Brand Voice in 2022 and Beyond!
Oct 04, 2022
Oct 04, 2022
10 min read
10 min read
The dynamic nature of the business world does not only depend on the transactions, but the consumers who are driving it. It is important for brands to know their consumer base and feed the information and products according to them!
In recent years, consumers have witnessed a huge change in the behaviour, preference, and buying pattern. This is backed by the outbreak of the COVID-19 pandemic, which has induced several changes in consumer’s lives.
Here we are listing some of the major trends among consumers, which would provide your brand with key growth prospects:
1. Evolution of Customer Centricity
Customer Centricity refers to an approach in which consumers' situation, perception and emotions are kept at the core while making a company's strategy. In the last few years, companies are widely adopting this concept and are using this approach for better customer experience and consumer satisfaction.
Now, people are becoming smarter and they are aware of their importance in the business world. They are acting as the driver for the business.
Thus, one of the highly popular concepts, on which organisations are significantly working is customer centricity. It is of utmost importance to know your target audience well, after all they are bringing you more business opportunities.
Using past data and sales patterns, one can easily draw out trends, which prevails among the customers. For example, if a company wants to know at what time their products are majorly searched, then they can use that time for the launch of their new product or solution.
There are many companies that are increasingly using solutions like customer data management tools, which help them to evaluate and frame strategies for better brand value.
Imagine, knowing what would be the possible next step of the customers you are serving. This would let any company imagine their brand value and customer retention rate. Drawing a pattern out of the data extracted from various sources can help a company to make different strategies.
So, it is important to make customers’ the core aspect of your business along with understanding and observing their patterns through historic data.
Timings play a crucial role in determining whether a customer would opt for your services or move to your competitors. Hence, you should identify at what time, customers would probably need your assistance and then, show up at that time.
Plan for the path, you want them to choose, at the time when they need it!
It is that simple, right?
2. High presence of customers in the digital world
The reason why the digital world is holding more prominence than the actual world, is its wide adoption among customers as well as companies. The COVID-19 pandemic compelled companies and consumers to shift to online platforms for any kind of interactions and transactions.
In the current scenario, the high penetration of the internet and growing adoption of smart devices like laptops, smartphones, are compelling companies to have a decent footprint in the digital domain.
Social media platforms like instagram are helping customers to carry out their shopping while scrolling for entertainment. Now, such platforms are not just limited to people’s personal accounts, but also have emerged as a medium for the companies to interact with their customers.
For example, companies like Starbucks, Zomato, and Amazon have started sharing various posts on twitter and instagram in order to map their brand in customers’ minds.
Since an average person spends a significant time on their phones, scrolling their social media handles, it is best for the companies to enter their domain and connect with them.
Influencers on these platforms have a high capability to influence the audience, who generally look for the review before choosing a product. Thus, opting for such marketing tools can help product companies to improve their brand voice.
Nobody can deny the fact that social media has the power to influence people. Any information can be spread like fire on social media. So, why can’t you make barbeque out of it?
Customers are becoming advanced, they understand the deal and crack it! All you need to do is to present the deal before anyone else does.
Apps are making customers’ lives easy and hence, they are opting for it, recently various apps gained popularity because of this. The main points to remember while launching any app for your company are:
- It should have easy user interface
- It should have the ’guiding’ factor
- It should be quick and attractive
Considering these pointers can attract more customers towards it and hence, help you in gaining a brand value.
So, chase for what you want to be chased for!
3. Growing awareness among customers about their health and environment
Consumers across the globe are significantly changing their lifestyle, food habits and even ethics. There is a surge in the population who are opting for sustainability at the core of their living.
It is due to the rising awareness among people about the importance of conserving resources and protecting the environment through every small step.
Understanding how consumers are thinking and how changes in the environment and social culture are affecting their lives, is crucial. Many companies are highlighting sustainability in their products and processes in order to gain more buzz among consumers.
Imagine a food company becoming completely vegan in order to stop cruelty on animals. In this case, people would definitely opt for it. The pandemic has significantly motivated consumers to opt for a clean diet and to be sensitive towards other beings.
In a case study, Grubhub, an online food company, published a report in 2021, in which they mentioned that people are significantly opting for their plant-based dishes. Additionally, in comparison to 2020, vegan orders have surged by 17% and vegetarian orders surged by 55%.
Similarly, many fashion brands are introducing sustainable clothing and accessories. This shows that consumers are significantly driving up the concept of sustainability due to the high awareness, which is further creating opportunities for the companies to gain momentum in the digital space.
Knowing the level of awareness and information consumers have is important for the companies. Along with that, it is important for companies to respect the emotions of the consumers and also fulfil their environmental responsibility. ?
4. Interactive, Relatability and humour
Today, the millennials and Gen Z are the most commonly targeted consumer base for the companies. They are the early adopters of various new products, technologies, solutions and services. This is why it is crucial to target and establish an interactive communication with them.
Since these generations are not passive acceptors, it requires a lot to maintain a relationship with them. Adding relatability to the content you post on your business accounts can hold on to them.
Millennials need companies to have interactive communication with the companies through various modes, especially social media. For that, companies should be very active on different platforms and always welcome the feedback they get from the audience.
Also, it is highly important to understand the slangs and language they use and reflect that in your work. Anything cool and funny would always be in trend among the population. Thus, it is important to maintain the relativity and humour part while communicating to the millennials and Gen Z.
Meme culture is at its peak, many organisations, no matter in which industry they deal in, are making memes as a fun way to communicate with their customers and engage them to elevate your brand voice.
Word of mouth plays a crucial role in influencing and establishing a brand value among consumers. For example, a person wants to buy a television set, then, generally, they ask their known ones and then scroll online for review. In this case, companies need to build brand image among consumers, which builds trust on them and then, further help in expanding the customer base for the company.
Building a healthy relationship with the younger generation with rising disposable income can be a boon for the companies. Be humorous, use their language and know their deals! This is all you need to make hustle among them!
To Sum up…
The relationship between consumers and businesses is not just limited to the trade of goods services with money. It has transformed to the exchange of ideas, emotions and values. Earlier, consumers were passive receivers of the content floated by the companies, which were limited to a few of the mediums only.
But, now, it is a broad spectrum, which companies can utilise to boost their presence and strengthen their brand voice. So, after reading some major trends among consumers, now, you can have the idea of boosting your company’s brand value!
Just focus on the concepts like Evaluate, Study, Create, Relate and Shoot your business sales! This mantra will give you a clear vision of your target audience and hence, help in creating your brand voice.
Tips for Brick-and-Mortar Retailers to Improve Revenue Amidst COVID-19
The arrival of COVID-19 has made all the predictions regarding 2020 go astray. All the businesses that were expecting growth and profit during 2020 have to come up with new survival strategies since COVID-19 has changed many things for most of the industries. You will be surprised to know that about 60% of the businesses from all over the world have been closed because of COVID-19 and this number is going to keep on increasing. Although each and every type of industry has been affected because of COVID-19, the one particular sector that has been affected the most because of the arrival of the virus is the retail sector or what people call as brick and mortar retailers. If you are running a similar kind of store and finding it difficult to keep your business alive then it's high time to come up with new strategies in order to improve revenues. The year 2020 might have turned out to be a big opportunity for online businesses but the same year has turned out to be a nightmare for brick and mortar retailers. But in order to make things easy for you, in this blog post, we will not only discuss possible solutions for retail stores to improve their revenue but also go through the current situations and look at the most common issues. The effects of COVID-19 on the retail sector When the dust will settle and COVID-19 will be gone completely, a new normal will arrive in the market and this new normal will include drastically changed human behavior and habits. One such change in human behavior and habit will be a shift from impulse buying to planned purchase. Window shopping will keep on decreasing and this will lead to reduced sales in retail shops. Another trend that you will see on the rise is crisis spending where customers will be restricted to purchase only essential products because of the economic slowdown. The crisis spending will continue to be a part of the consumer habit even after the end of the virus. Another change that we are currently encountering is focused on individualism. For example, you will see that there is a sudden decrease in the demand for group items since gathering is being completely avoided. Tips for improving revenue amidst COVID-19 Just because the current situation is tough and you will have to go through many changes, this doesn’t mean that you should also belong to the 60% of the business mentioned at the outset of the article. There are many retail shops out there that are still surviving and making improvements to their overall revenue. Source: Unsplash Here are some of the tips that you can use in order to improve revenue amidst COVID-19 Increase customer engagement via various mediums If you are running a retail store then you must be aware of the fact that only 20% of your customers produce 80% of your revenue. Since these customers will always remain important for the survival and growth of your business, it is crucial for you to pay special attention to these customers, especially during the current situation. The loyalty of these customers will keep your retail store alive during the pandemic and this is why you can’t ignore them. Whether it is emails, blogs, articles, or newsletters, you will have to use all the mediums possible in order to stay connected with these customers as they should be your main focus, especially when you are struggling to survive. If you succeed in illustrating that you are there for your loyal customers during a tough time, you will be able to nurture your loyal customers. Identify your loyal customers and start making changes to your current strategy. You can follow down on the path of focusing your investment towards marketing efforts and build a presence online. This will help your customers connect with you more easily and you will be able to boost engagement. It will also help you target new customers who are looking for viable options. Localizing your digital marketing strategies will enhance the chances of people finding you and it will eventually bring in business. Leveraging social media Social media engagement has increased multifold over this past year. If you own a brick and mortar retail business, it becomes essential for you to garner an audience for yourself. You can also leverage the platforms in educating the masses about latest trends that you follow or the sanitization process you use to keep you customers safe and whatnot. If you are having trouble bringing in business, do not get disheartened and work towards building a brand. You need to think long-term and set up a digital base for yourself. No matter how local your brand is, you would need to establish a presence digitally to survive what this pandemic has brought on you. Gift cards This might look like a marketing tip from the 90s but you should know that it works really well even during the current situation. Gift cards provide all the different types of retailers with an immediate injection of cash and in addition to this, it also improves repeat purchases among customers as well. You should know that gift cards are an amazing way to stay in front of the audience and it can also be helpful in acquiring new customers as well. Even during the current situation, you can easily send digital gift cards to all your customers and make them feel special. But your digital gift cards shouldn’t be limited to your customers only as you can use them even for your prospects. Enhance your digital presence by structuring your messages The importance of messaging has increased by many folds just because of the current situation. All the firms out there now need to be more sensitive when it comes down to customer’s needs and this can only be done when firms will start reworking their marketing and advertising strategies. If you were running a campaign that included the gathering of people, you will need to make some changes to those campaigns as you will need to show the reality of the current situation through your marketing campaigns. You can’t keep using the same marketing campaign if it doesn’t fit according to the current situation. But this doesn’t mean that you will have to completely change your core branding message as all that you will need to do is to make sure that your campaigns fit like a glove in the current situation. Instead of being opportunistic, you will have to stay authentic during these tough times. Common and regular mistakes in your marketing campaign will mean that customers are less likely to interact with your company. This would be the best time to invest in making your marketing efforts more aligned. You can even get your digital marketing outsourced to save up on the extra expenditure. Working on shipping cost If you are planning for any type of cost-cutting then you should consider your shipping department for such a purpose. If possible, you should start looking for fulfilling your orders manually and you should never forget including local shipping features. If the customers that you are serving are close to your firm then you can offer them a local delivery option in which the local rates will be applied to selected zones. You will have to align the shipping cost according to the current situation. The NEED to move online You should know that because of the shift in consumer behavior during the lockdown, most of the consumers have moved online to purchase goods. There are many countries out there that are still going in for a lockdown because of the second wave of the coronavirus and this will further fuel the growth of online usage. Even people who restricted digital platforms in the past are now moving to it because they have no other options. When the dust settles, people will get into the new normal, the usage of the online platform will keep on increasing. Because of this you will have to shift to the online platform and it doesn't mean complete closure of your brick and mortar shop, it just means having another platform for the consumers to buy your goods. You can simply start by choosing a website developing company and get your website built in a professional manner. There are maximum chances that the website developing company may provide SEO services through which you will be able to rank up in the search results and this will further boost your digital presence. Soon after the shift to the digital platform, you will witness a robust growth in your revenue. Get ready for the new normal because even after the end of the pandemic as consumer behavior and habit will continue to evolve. Now, if you are ready to step ahead and evolve with them, connect with Saffron Edge now! ...
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What is Performance Marketing in DTC? How to get the best out of it?
Investments are soaring to new heights, and a star is on the rise – DTC performance marketing. In 2021, worldwide digital advertising spending skyrocketed to a staggering $455.3 billion, and the forecast is even more promising. By 2024, that figure is expected to reach an astonishing $646 billion, reflecting a booming industry ready for innovation. Shift To Performance Marketing, the dynamic fusion of paid advertising and brand promotion, is at the forefront of this marketing revolution. Unlike traditional marketing models, performance marketing operates on a simple yet powerful principle: results matter. With this approach, advertisers and affiliates only pay when a specific, desired action is achieved – whether it's a lead generated, a sale completed, a booking made, or a download initiated. Within this landscape, the structure is supported by various factors. Cost forms the foundation, balancing investments for optimal returns. Risks are the core, encompassing potential overspending and market saturation. KPIs in the center guide campaigns with precision. Specialization offers expertise in digital marketing nuances. Efficiency on the table's surface drives success, with resource allocation and optimization as key pillars. Understanding this structure is vital as investments in DTC Performance marketing continue to surge, shaping the future of marketing. This collaboration allows both parties to target campaigns effectively, ensuring a high return on investment (ROI) driven by measurable outcomes. For merchants, it's a calculated investment, as they engage with an audience that's already converting, making every dollar count. This approach offers substantial advantages, making it a game-changer for ecommerce businesses. Read on to delve deeper into the topic. What is Performance Marketing? Performance marketing is a term that encompasses a wide array of practices, and its definition can vary significantly depending on who you ask within the realm of marketing professionals. In practical terms, performance marketing serves as an overarching concept that encompasses all online marketing and advertising endeavors where advertisers compensate marketing platforms exclusively upon the completion of specific, quantifiable actions carried out on their platforms. What sets performance marketing apart from traditional marketing methods is the fundamental shift in payment structure. In conventional marketing, advertisers commit upfront payments to advertising providers, often expecting to achieve certain outcomes. In stark contrast, performance marketing dictates that advertisers only bear costs when precise conditions are met, such as the successful purchase of a product. This age is marked by the rapid acceleration of Direct-to-Consumer sales, thus creating more growth avenues for DTC SEO marketing. Fueled by the global shift towards a digital marketplace, D2C enterprises are presented with a compelling imperative. They must harness the full spectrum of available tools at their disposal, among which performance marketing stands out prominently. Failing to leverage such tools may result in being left in the wake of competitors who have embraced the transformative potential of performance marketing. What is DTC with Performance Marketing? Direct-to-consumer (DTC) models and Performance Marketing are reshaping modern business. Their alignment centers on a shared customer focus. DTC builds direct connections with consumers, while Performance Marketing efficiently targets and engages them. When combined, these two approaches create a synergy where Performance Marketing becomes the driving force behind DTC success. Performance Marketing strategies, such as search engine marketing, social media advertising, and email campaigns, are tailored to target the DTC audience precisely. This alignment ensures that marketing efforts are not only reaching potential customers but also resonating with them on a personal level. DTC Paid Marketing are inherently data-driven. They rely on consumer insights, purchase history, and behavioral data to tailor products, marketing messages, and the overall customer experience. This approach aligns seamlessly with the precision and accountability of Performance Marketing. Performance Marketing thrives on data analytics and measurement. It allows businesses to track the performance of every marketing dollar spent, from click-through rates to Conversion rates. When integrated into DTC models, this data-driven approach ensures that marketing strategies are effective and adaptable in real time. For example, if data analysis indicates that a particular demographic is responding positively to a DTC campaign, Performance Marketing allows for the immediate allocation of resources to capitalize on this trend. Conversely, if a campaign is underperforming, adjustments can be made promptly, minimizing wastage of resources. Performance Marketing Strategy vs. Traditional Marketing Strategy Performance and traditional marketing represent two distinct approaches to promoting products and services, each with its characteristics and advantages. Performance marketing primarily relies on digital channels and encompasses SEO, SEM, PPC, email marketing, and social media advertising strategies. It's known for its cost-effectiveness and precision in reaching target audiences. In contrast, traditional marketing encompasses older methods like TV, radio, banners, and print ads, often relying on mass exposure. One of the key differences between the two lies in their cost-effectiveness. Performance marketing excels in optimizing return on investment (ROI) by allowing marketers to allocate resources more efficiently, whereas traditional marketing can be costlier, especially for small businesses with limited budgets. Moreover, performance marketing is highly measurable, thanks to analytics tools that provide real-time insights into campaign performance. On the other hand, traditional marketing often struggles to provide accurate and timely measurements of its effectiveness. Another distinguishing factor is the ability to adjust campaigns after launch. Performance marketing campaigns can be altered and optimized even after they've gone live based on real-time data. In contrast, traditional marketing materials, once distributed, remain static. When it comes to audience reach, performance marketing offers a global reach through online platforms, allowing for precise targeting of specific demographics. Traditional marketing typically has a more localized or regional reach and often employs standardized methods to target audiences. Furthermore, performance marketing emphasizes two-way communication, which fosters higher customer engagement and satisfaction. Traditional marketing tends to rely on one-way communication, where the message is broadcasted to the audience without direct interaction. Social Media Giants: Facebook and Instagram The symbiotic relationship between social media and DTC brands is undeniable. Social media isn't just a place for personal connections anymore; it's a dynamic force influencing consumer choices. Meta's research reveals that over 80% of Instagram users use the platform for product discovery, and 37% of TikTok users make immediate purchases, spending 14% more. Getting SEO Help for DTC brands can harness this power for targeted campaigns effectively. Attracting the Right Audience: Social media marketing is a cost-effective pillar of multichannel strategies, enabling DTC brands to build brand awareness and connect with potential buyers. Offering value and showcasing brand personality fosters loyalty, attracting the right audience. Personalized Experiences: Social media isn't one-way communication; it's about building communities. It connects loyal customers and gathers data for product development and branding. Customer Support and Engagement: Social media offers direct customer support and boosts engagement. Platforms like TikTok and YouTube see users spending around 45 minutes daily. Driving Conversions: Higher engagement leads to more conversions. Meta reports that 86% of consumers would purchase or recommend products discovered on Instagram. The cost-per-mile (CPM) and cost-per-click (CPC) for Instagram ads in 2021 were $7.91 and $3.56, respectively. Worldwide, the average social media advertising click-through rate (CTR) is 1%. These platforms offer potent ad formats and precise targeting options. Glossier and Allbirds have excelled by harnessing Instagram and Facebook to engage and target consumers effectively. DTC brands can propel growth and engagement by strategically leveraging social media's vast user base, utilizing engaging ad formats, robust targeting, and success stories as guiding lights. Winning at E-Commerce Marketplaces, in general, provide DTC brands with a fertile ground to thrive in the e-commerce landscape. Their endless win-win benefits make them an attractive channel for businesses looking to excel in online commerce. Amazon, in particular, exemplifies these advantages, standing out as a prominent player in the e-commerce marketplace arena. Amazon PPC (Pay-Per-Click) is a crucial advertising model for DTC brands on Amazon. It involves advertisers bidding for ad placements. The highest bidder gets the top spot, and payment is only required when a shopper clicks on the ad. These ads, known as Sponsored Products, help DTC brands increase visibility and sales. Bids are dynamic, and sellers can adjust them to control when and where their ads appear. The cost is incurred per click, making it an investment in driving product sales for DTC brands. Joining Amazon as a Direct-to-Consumer (DTC) brand isn't just about offering an easy shopping experience; it's a strategic move loaded with benefits: Effortless Customer Reach: Amazon stands as one of the most efficient ways to connect with customers, especially in the U.S. Why? A whopping 66% of new product searches now begin on Amazon, surpassing search engines (20%) and brand websites (4%). Amazon has become the go-to for finding products. Amplifying Brand Impact: Positive Amazon product reviews wield significant influence beyond the platform. These reviews can boost a brand's sales across all channels, even their standalone website. Consumers often consult Amazon reviews, shaping their purchase decisions, even if they intend to buy from a physical store. Revenue Powerhouse: Amazon can be a substantial contributor to a brand's revenue, even if they are primarily internet-based. It's not uncommon for Amazon to account for 10-40% of a DTC brand's total retail sales. Some brands even rake in $150,000 to $200,000 per month on Amazon alone. Cost-Effective Advertising: Amazon's advertising costs can be up to 10% lower than DTC's. Brands on Amazon often experience a surge in traffic and organic search for DTC, thanks to Amazon's status as the first stop for product searches. This shift can lead to healthier profit margins for DTC businesses. Lower Customer Acquisition Costs: Amazon sits closer to the bottom of the purchasing funnel, with a high intent to buy. Customers actively searching for specific products or brands are primed for purchase, translating to higher conversion rates. In contrast, advertising on platforms like Google and Facebook targets users further up the funnel, resulting in higher customer acquisition costs. Amazon presents an alluring avenue for DTC brands to thrive in e-commerce. Its advantages make it a powerful platform for those seeking e-commerce excellence. Google Ads Google Ads emerges as a versatile and indispensable tool for Direct-to-Consumer (DTC) brands aiming to excel in performance marketing. With its wide array of ad formats and unparalleled reach, Google Ads provides DTC brands with ample opportunities to optimize their online presence. Here's how: Search Ads: Google's search ads are perfect for DTC brands seeking visibility among actively searching customers. Precise keyword targeting ensures prominence in relevant search results, aligning with search's intent-driven nature. Display Ads: DTC brands enhance visibility and engage potential customers across the web using Google's display ads. Appealing visuals can be placed on an extensive network of websites, reaching a broad audience. Audience targeting tailors ads to customer profiles. YouTube Ads: Utilise YouTube's vast user base with compelling video content. YouTube ads, in various formats, captivate audiences effectively. Engage your audience on this video-sharing platform. To thrive on Google Ads, DTC brands should focus on a few key strategies: Keyword Research: In search ads, the choice of keywords is critical. Conduct thorough keyword research to identify the terms that resonate with your audience. Tailor your ad campaigns around these keywords to enhance visibility. Audience Segmentation: Employ Google's audience targeting capabilities to segment your audience effectively. You can enhance engagement and conversion rates by delivering tailored messages to specific segments. Compelling Creatives: Invest in creating compelling ad creatives. Whether it's text for search ads, visuals for display ads, or videos for YouTube, captivating creatives are the heart of successful campaigns. Continuous Optimization: The digital landscape evolves rapidly. Regularly monitor and optimize your ad campaigns to adapt to changing trends and customer behaviors. Key Metrics for Success Cost per Acquisition (CPA): CAC in the context of DTC brands and performance marketing refers to the cost incurred to acquire a new customer. It encompasses advertising, marketing, and sales expenses, providing insights into the efficiency of customer acquisition strategies. Return on Ad Spend (ROAS): ROAS is a crucial metric for DTC brands engaging in performance marketing. It measures the revenue generated from advertising campaigns relative to the ad costs. High ROAS indicates effective campaigns that generate substantial returns. Customer Lifetime Value (CLV): CLV is the predicted revenue a DTC brand can expect from a customer throughout their entire relationship. It aids in determining how much to invest in customer acquisition and Retention Marketing, ensuring sustainable profitability. Conversion Rate: Conversion rate signifies the percentage of website visitors or potential customers who take a desired action, such as making a purchase. In the DTC context, a high conversion rate is indicative of effective performance marketing campaigns. Customer Acquisition Cost (CAC): CAC quantifies the expenses associated with acquiring new customers through performance marketing efforts. It assists DTC brands in evaluating the cost-effectiveness of their acquisition strategies. Cost per click (CPC): CPC represents the amount an advertiser pays each time a user clicks on their online ad. It measures in pay-per-click (PPC) advertising campaigns, reflecting the cost of driving traffic to a website or landing page. Clickthrough rate (CTR): Clickthrough Rate (CTR) measures the percentage of users who click on a specific link or ad, relative to the total number of users who view it. A higher CTR typically indicates a more effective and engaging marketing campaign. How to Create a Performance Marketing Campaign? Performance marketing campaigns are unique to each product and brand. The intent also plays a great role in the trajectory. However, there are a few steps that everyone must tweak and follow as per their requirements. Let’s break them down; Certainly, here's a more concise version of the steps to build a performance marketing strategy: Step 1: Define Clear Objectives: Establish your campaign goals, whether it's brand awareness, website traffic, engagement, lead generation, or sales. These goals shape your ad placement and targeting. tep 2: Select Diverse Digital Channels: S Diversify your approach rather than relying on one channel. Explore options like affiliate marketing, native advertising, or social media, depending on your audience and conversion goals. Step 3: Create and Launch: Craft compelling campaigns by understanding your audience's needs and preferences. Develop engaging ad creatives and messaging tailored to each channel's technical requirements. Step 4: Measure and Optimize: Post-launch, monitor campaign data and optimize for performance. Analyze key DTC metrics, track traffic sources, and allocate ad budgets effectively to improve ROI. Step 5: Address Potential Challenges: Be aware of challenges like brand safety, compliance, privacy regulations, click fraud, and publisher issues. Mitigate risks by partnering with reputable advertising platforms. This streamlined approach ensures a strategic foundation for performance marketing campaigns and effective post-launch optimization. Overcoming Challenges and Sustaining Growth The DTC landscape has witnessed a transformative journey from its inception in the early 2010s to the present day. Initially, it was a golden age for DTC businesses as they leveraged the power of e-commerce and digital marketing to create a win-win scenario for brands and consumers. The adoption of smartphones, online shopping, and the cost-effective reach of social media propelled this trend to new heights. However, this era also saw investors overreacting, with many DTC companies lacking a viable business model and receiving substantial funding. Today, successful DTC brands stand out with either loyal customer bases or unique approaches that circumvent the skyrocketing costs of social media marketing. For other DTC companies, the question looming large is, "What do we do now?" Adapting to Algorithmic Changes Frank Berman, EVP and Chief Marketing Officer at Bloomingdale's, aptly notes that the future of DTC was never what it initially seemed. It's not about disproving DTC; it's about recognizing that being where the consumer is has always been the ultimate goal. Selling online, while crucial, isn't sufficient. Traditional brick-and-mortar stores still hold value in the retail landscape. Department stores, often considered conventional, have demonstrated their resilience. They offer consumers the ability to compare products, validate pricing through comparison shopping, and provide a sense of discovery. This enduring value highlights that DTC brands should consider embracing physical retail spaces to cater to diverse consumer preferences. DTC Plus - Blending Online and Offline DTC brands are adopting strategies like "DTC-Plus." This approach extends beyond online sales by incorporating physical stores where brands can showcase their products alongside those of like-minded brands. As exemplified by companies like Masami, this strategy combines the benefits of both digital and physical retail spaces. The Power of Community Another essential aspect of sustaining DTC growth is building and nurturing a brand community. Roy Bernheim, Co-Founder of Decommerce, emphasizes the need for DTC brands to "own and host their own community." Proprietary communities reduce the reliance on costly social media marketing, enabling direct communication with the audience. These communities foster repeat orders, data collection, and insights into consumer behavior, all of which are crucial for long-term brand sustainability. Storytelling as the Cornerstone According to Daniel Langer, CEO of Equite and advisor to luxury brands, the essence of DTC success lies in storytelling. Brands have transitioned from being mere manufacturers to multifaceted entities encompassing retail, publishing, and socio-cultural influence. To stand out, DTC brands must tell their unique story that evokes emotions, resonates with customers, and differentiates them from competitors. It's not about selling a dream; it's about selling a distinct and profoundly meaningful dream. In retrospect, DTC was never merely a business strategy; it's a channel, a means to an end. The real essence of DTC lies in the message, the product, the sense of belonging it offers, and the values it upholds. DTC's success stories are those of brands that made consumers feel good. While the channels may change, these core principles remain constant. Creating a brand today is more challenging than ever. The modern world is bustling with noise and competitors. The DTC brands that originally succeeded in online sales are now expanding into physical stores because that's where their customers are. The journey was never about the channel; it was always about crafting a compelling message, offering remarkable products, fostering a sense of belonging, and upholding core values. These principles remain timeless, guiding brands toward enduring success, whether DTC or otherwise. In Conclusion The symbiotic relationship between Performance Marketing and DTC isn't just an option; it's a necessity for brands aiming for exponential growth. To thrive in this dynamic landscape, DTC brands should seize the power of Performance Marketing, leveraging its capabilities to reach, engage, and convert. For those ready to take the leap, Saffron Edge stands as a trusted partner, offering unparalleled expertise in crafting tailored Performance Marketing strategies that propel DTC brands to unparalleled heights. Embrace the synergy, fuel your growth, and step confidently into the future of DTC with Saffron Edge. Your success story awaits. ...
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Key tips for Direct To Consumer Brands to enhance Customer Retention and CRM
High customer retention can be very beneficial for direct-to-consumer brands. It can dramatically boost their customer acquisition and sales. However, a company can gain a high revenue or sales with a smaller customer base too. So, they don't necessarily have to expand their client base. Direct-to-consumer brands can have a relatively smaller audience base, but they may have dedicated customers who frequently purchase goods and services from them. You may have come across the fact that reaching out to existing customers is way easier and cost-effective than acquiring new ones. Well, client acquisition is a costly process that requires a lavish amount of marketing spend. Source: Pexels On the other hand, having repeat customers can allow your brand to earn more, get more customers via word of mouth, increase the credibility of its products, and much more. DTC businesses are known for their personalized services, and consumers love that! According to a study, 77% of the customers choose brands that offer a personalized experience or service. Another study highlighted how 75% of the customers trust purchase recommendations when those suggestions are personalized as per their needs. The American multinational corporation "Nike" followed a strategy to increase their personalization within their offerings. They wanted to strengthen their customer relationship and wanted to make better-localized inventory/demand predictions. According to their annual report of 2019, their direct sales were increased by 35%. The direct business channel had outperformed all the other channels; it contributed 32% to Nike's total annual revenue. Thus, DTC sales were quite critical for Nike's future growth. However, this was not possible without effective CRM tactics and client retention strategies. As a DTC brand, your business should be aware of such techniques as they help you grow your business massively. Let’s look into the essential tips to help your DTC brand boost its customer retention and CRM. Tips For DTC Businesses To Improve Their Customer Retention And CRM 1. Direct To Consumer BrandsShould Measure Some Key Metrics To improve your customer relations and client retention, you need to measure your metrics. To analyze your metrics, you need to collect an ample amount of consumer data. It will help you in understanding the true impact of your business. There are a few standard metrics that you should analyze, like your brand's repeat purchase rate. What is the retention rate on your bring-back campaigns? What is the return rate on your email campaigns, discount offers, etc.? Has your Average Order Value or AOV increased? Are there any specific months where your sales rise? Are you tracking your profitability? What kind of CLV or average customer lifecycle does your brand have? You must evaluate these figures to know the present state of your business. These figures will help your team fine-tune its customer retention tactics. 2. Ensure A Consistent And Custom User Engagement Not all first-time purchasers return to a DTC store; the reason might be a lack of trust, interest, or relevance. Hence, when a new customer places an order, your company should present a post-sales campaign to encourage repeat sales. In this way, the customer will interact with your brand more than once. It will induce credibility, trust, and relevance. If you can customize these campaigns according to various customer personas, then you can maximize your sales. We have mentioned some campaigns that you can tailor according to consumer persona. User data-based campaigns One of the most effective ways to send personalized messages to your consumers is by using consumer data. You can develop targeted campaigns based on their activities that trigger their purchase decisions. For instance, to reduce cart abandonment rates, you can send personalized email campaigns that offer a 5-10% discount on the same day. Consumer history-based campaigns A great way to use consumer data to boost customer retention is by using their data from previous purchase history. For example, if a consumer buys a gaming PC, you can target them with a game controller that enables them to elevate their gaming experience. You can advertise the gaming controller via re-engagement email or push notification. Use other channels to uplift customer retention Today, consumers are always on the internet and access the internet through various mediums. They don't like to wait and repel irrelevant messages. Thus, a DTC brand needs to engage its customers on the most active channels. Once they do that, they can ease out communication and reduce any form of delay. So look for active channels through which you can boost engagement. 3. DTC Businesses Should Explore New Digital Channels One area where several DTC brands fail to impress their audiences is real-life customer experiences. If your brand offers cosmetics, sportswear, eyewear, tea, etc., you might struggle to deliver a real-life customer experience. However, many DTC businesses are generating more revenues via online platforms than their brick-and-mortar retail stores nowadays. With O2O commerce, offline, physical stores can allow their consumers to shop directly from their homes. Source: Unsplash Another great marketing strategy for the DTC brand is conversational commerce. Today, businesses use Whatsapp, Facebook messenger, etc., to interact with their consumers. The cross-platform instant messaging app "Whatsapp" has 2 billion monthly active users, which offers features like "Whatsapp for business." Therefore, direct-to-consumer companies can use these apps for interaction where their customers spend most of their time. 4. Encourage Customers To Place Reorders Your business can leverage omnichannel marketing strategies to encourage customers to make repeat orders. You must use omnichannel marketing strategies if your products are perishable. Perishable products include coffee beans, tea leaves, food items, sport or health supplements, etc. These products have a limited shelf life, due to which you get the opportunity to encourage them to buy from your brand if they want to restock their supply. All proactive DTC brands use customized campaigns to trigger purchase emotions among their customers. You may have seen DTC brands sending a 15-day reminder or a one-week reminder to remind their customers to refill their supplies before it ends. Source: Unsplash 5. Be Data-Driven, Test Your Campaigns! While doubling your efforts on various types of marketing campaigns, you must not ignore the effectiveness of these campaigns. To judge that, you need to evaluate them through a testing process. When you incorporate a testing phase, you will eliminate intuition-led tactics and derive data-driven strategies. Even if you want to enhance your repeat purchase rate via email marketing or push notification, you need to test them to get the best results. Successful DTC businesses a/b test their campaigns to analyze which type of campaign is most appealing to their customers. During the testing phase, you can add customer funnels to figure out areas that act as a point of friction. You can then eliminate those areas to get your desired results. For instance, a low CTR rate in an email campaign may signify that a customer isn't satisfied with your content or email design. Takeaways To deduce customer retention to its simplest form, we can say that it's all about making a customer's shopping experience more engaging or enjoyable. All Direct to Consumer brands should focus on making their clients feel valued. The strategies mentioned above can help your brand achieve a high customer retention rate and a better customer relationship. If you are a DTC brand looking to uplift its growth, ROI, customer retention, or client acquisition, get in touch with our experts to know more! ...
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