Algorithms and advocacy – how D2C businesses can build loyalty
Direct to consumer is not a new concept but the internet gave DTC potential reach and a way to connect to customers in a personal, unique way. The first pioneers in DTC ecommerce caught the attention of media and excited consumers – Dollar Shave Club etc seemed cheaper than the established alternative, had a unique tone of voice and made customers feel part of an exclusive club or a community – created brand love.
Now we’re in a different world. Many of the original D2C players have cashed in by selling up – including Dollar Shave Club while Casper’s IPO in February was lacklustre. The landscape was getting more competitive even before Covid-19 with rising customer acquisition and marketing costs, a tighter focus on profitability and bigger established players with deeper pockets ramping up their D2C services.
The pandemic has introduced a whole new audience to shopping online and presented plenty of opportunity for D2C players who get it right but it has also put stress on operations and fulfilment. It’s also meant businesses with bricks and mortar stores have had to up their ecommerce game and take learnings from D2C.