No matter what industry you're in, you've undoubtedly heard the buzz about direct-to-consumer (DTC) marketing. But what does DTC really mean, and how can you make this approach work for your business? Discover the benefits of a DTC business and find out how to build your own DTC marketing strategy.
What Is Direct-to-Consumer Marketing?
Direct-to-consumer brands serve customers without the need for a middleman. Their products go right from the seller to the purchaser, and these brands have almost completely independent sales systems. Rather than selling products via retailers, meaning department stores, supermarkets, or online platforms like Amazon, DTC brands typically distribute through their own online stores. In addition, instead of advertising on TV or radio, they tend to stick with native ads.
The origins of DTC marketing date back hundreds of years. Centuries ago, many merchants created trade catalogs to sell their wares. More recently, door-to-door salesmen delivered DTC brands right to consumers' doors.
Today, some companies continue to use a direct sales force to market their products face to face or over the phone. However, direct-to-consumer e-commerce sites are becoming increasingly common as savvy brands develop successful strategies for connecting with customers online.
Benefits of a DTC Campaign Strategy
Building a DTC brand can be a smart option for many businesses. Some of the biggest benefits of DTC marketing include:
- Tracking and Collecting Data: When your business manages its own marketing and advertising campaigns and sells directly to customers, you get access to all the data. That means you can collect data related to consumer activity and advertising results and use it to optimize your campaigns.
- Controlling Consumer Experiences: For the average brand, consumer experience is largely in the hands of retailers and online shopping platforms. If customers have a bad experience trying to purchase your product from a store, it can reflect poorly on your brand. When you go DTC, you have almost complete control, so you can give your customers the best possible experience.
- Maximizing Return on Investment: Dealing with retailers might help your business get its products in front of more shoppers. However, these consumer marketplaces can cost a big chunk of your revenue. When you sell directly to customers, you can save the money you would have paid to middlemen and invest it back into your company.
How to Build an Effective DTC Marketing Campaign
To design a successful DTC campaign, you have to know how to develop a brand, stand out from the competition, and connect with consumers. Use this guide to start mapping out your DTC marketing campaign.
1. Understand Your Audience
When your business focuses on consumer sales rather than selling through retailers, it's essential to have an in-depth understanding of your audience. Most successful DTC brands do extensive audience research to assess their customers' interests, preferences, and problems so they can design effective solutions. To learn more about your target audience, survey your current customers or use publicly available data from sources like Facebook Audience Insights.
After finishing your audience research, compile your notes so you can develop buyer personas. Each buyer persona should include basic demographics as well as typical behaviors and common interests. Whether your business has one or more ideal customers, creating buyer personas helps you understand who you're selling to and how to appeal to them.
2. Build Your Brand
Once you know your audience, it's much easier to develop a brand that attracts the right customers. Follow these tips to craft your brand and build awareness:
Hone your brand voice. Every company has its own way of communicating with customers, and DTC businesses are no different. To create an appealing voice for your brand, pay attention to the way your customers speak or write. Incorporate some of their preferred styles or phrases so your brand voice resonates with your customers.
Write a style guide. As you place your brand in front of potential customers, it's important to use consistent styles across all channels. Develop a style guide that includes everything from fonts to logos to colors so your team never has to ask which to use or risk using the wrong option.
Create a messaging map. To build an effective DTC campaign, you need strategic messaging. Start by thinking about your brand's unique selling point (USP) and what sets it apart from competitors. Then brainstorm ways you can use your USP to position your brand.
3. Launch a Website
Every DTC business needs a website, especially if you plan to sell products online. Your website can be relatively simple, but it should at least have Google Analytics so you can track customer data and signup forms so you can invite customers to subscribe to your email list. If you want to offer e-commerce, consider developing a website using Shopify, Squarespace, or WordPress so customers can order directly from your business.
4. Empower Your Customers
When your business deals directly with consumers, you can give your customers a surprising amount of power. To validate product ideas, ask customers for their opinions during the research and development phase. Their input can help you decide on features or fix potential mistakes. As your products get closer to the launch stage, consider asking select customers to beta test. This strategy can increase engagement and drive interest before your products are available for sale.
5. Maximize Your Social Media Presence
To connect with customers, build profiles on social media platforms like Facebook and Instagram. Then develop a social media marketing plan that involves building brand awareness, educating customers, and driving sales. Creating robust social media profiles can also lend legitimacy to your brand, which can be critical for DTC businesses.
6. Design Email Campaigns
For DTC brands, email is one of the most effective ways to communicate with customers. Sending emails gets your business directly into customers' inboxes, so you don't have to deal with social media algorithms. You can collect email addresses from your online customers and your website signup form. Then you can keep your DTC company top of mind by emailing regularly, especially if you have new products to release or discounts to share.
7. Embrace Digital Ads
To reach a wider portion of your customer base, make the most of digital ads. Many DTC businesses use one or more of these ad strategies:
- Pay-Per-Click Ads: These ads appear on search engines like Google and let you target customers based on demographics, behaviors, and interests.
- Paid Social: You can create ads on social media platforms to reach current followers and interested customers.
- Branded Content: You can place sponsored blog posts and advertorials on the websites of publishers that tend to attract your ideal customers.
Whether you're considering building a DTC brand from the ground up or you want to expand your existing company's direct-to-consumer channels, you can tap into a wide range of benefits. Keep this guide handy as you take the first steps toward DTC marketing.