Why Consider the D2C Model? Benefits from a Brand and Consumer Perspective

By Kyle Fitzsimmons, Content Marketing Manager at Ultra Commerce

The direct to consumer, or D2C model of growing revenue and reaching new customers is gaining a stronger foothold in consumer markets. Brands are motivated to expand their revenue streams and profit margins – both benefits to embracing the D2C model. In addition to delivering their products to third party retailers, wholesalers and in some cases their very own physical store fronts, brands are additionally opting to deliver the purchased product direct to the consumer.

Brands that historically sold their goods exclusively through retailers or wholesale are intrigued by the D2C model as an additional revenue stream. D2C also presents a new opportunity to market directly to the consumer through personalization, customer loyalty and other related marketing communications. This fosters a sense of trust and familiarity between the brand and its most devoted customers.

From the business perspective, D2C is an effective model to directly reach your most loyal customers, gain full control of how your product is positioned to them and maximize profit. But the D2C boom also has evolving customer behavior and expectations to consider.

Perfecting the customer experience drives D2C growth

The D2C model addresses the needs and demands of the modern consumer. This type of buyer is influenced by the Amazon same day delivery promise and is now looking for all the products they purchase to be waiting for them at their front doors when they get home. That expectation now relates to everything from food and medicine to clothes and transportation – truly all of life’s necessities.

When companies look at whether the investment and resources necessary in adopting the D2C model is worth it they must consider revenue growth hinges on D2C capabilities. Consumers have grown accustomed to the D2C model in other aspects of their lives and they will most certainly not compromise for anything less than the easiest and most convenient shopping experience available. D2C companies provide that. Does yours?

We want to know more about your D2C challenges. Want to chat? Drop us a line.