Questions you need to think about before your brand goes DTC

While it’s true that 2020 has seen a surge in eCommerce sales due to COVID-19, that doesn’t mean that going DTC is the right step for your company, particularly at this relatively unpredictable time. Before adopting a direct-to-consumer strategy, brands need to question their methods and understand their offer.

Here are some questions you might want to ask yourself and your team before taking the plunge.

Is your brand ready for DTC sales and marketing?

If D2C is the new thing, why not adopt it as soon as possible, you might ask. Before accepting blindly, see if it will truly work for your brand or if you’re even ready. Moving to DTC might not be the best idea if your stakeholders don’t understand the benefits or if your brand doesn’t have the online infrastructure to support D2C initiatives.

Can you support direct orders to your warehouse or do you need a new 3PL partner?

If you go D2C, the chances are that you’ll have to store the product in a warehouse somewhere so it gets selected, packed for shipping, and labeled. As your business grows, you’ll soon discover that, unless you planned for it, this process becomes incredibly time consuming and distracts you from where you need to be. This means that you need to assess your capabilities and start small or see if hiring a 3PL partner is cost-effective for you.

Do you have any contractual obligations that might limit you selling certain products or in certain markets?

If you’re selling a regional product or something that’s only available in a specific region, it’s possible that there are certain restrictions or limitations to market that product outside its original jurisdiction. Also, you might have limited distribution rights over a certain product, and it’s not legal for you to sell it elsewhere, which is why you’d better check first.

Are you going to sell the whole product line or just a limited set?

It’s not always a good idea to put all your eggs in one basket, which is why before going D2C you need to decide if you’re using an eCommerce platform only for new products or premium versions. At the same time, you need to assess if you will place availability limitations on certain products. 

Are you going to use it as a marketing intelligence tool?

Enabling D2C strategies can help you unearth insights about your customers. For instance, you can offer Linda, who already got a pair of shoes, a matching set of earrings next time she goes to the store. With others platforms you’re able to remarket to your existing customers, bringing your acquisition costs down, giving you insights about your shoppers, and impressing your customers.

Should you think of doing a subscription service?

Many eCommerce stores offer subscription services. Think of Dollar Shave Club, for example. They provide their clients with shaving supplies at a monthly subscription price. They also offer customers the possibility of personalizing the experience by completing an interactive survey. If that’s not possible for your brand, you can also offer limited product drops aimed at a VIP sector of your clientele just like Heinz did with the Ketchup Puzzle; a limited edition, all-red puzzle that enticed clients into buying something different and challenging.

Now that you’ve asked yourself all these questions let’s jump to the tips.