4 Common Ways That Brands Fail At Direct-To-Consumer Selling

One of the easiest Customer Experience themes to understand is a brand’s ability to reduce the amount of effort necessary for a customer to complete a desired action. Whether it is purchasing or returning a product, getting help from a call-center, or changing the delivery address on an online order, customers should exit an interaction with a positive perception of your brand. An effective way to accomplish this level of Customer Experience excellence is to initiate a direct-to-consumer selling strategy. However, there are many examples of brands attempting to enter this space unsuccessfully. Check out these four common ways that brands fail at direct-to-consumer selling.

1. Inability To Portray Value Proposition To Customers

If your brand is no longer relying on wholesale partners to complete the sales process, it is important that your product or service is valuable enough to differentiate itself from the pack. Be sure to place the unique value proposition of your brand at the front and center of any customer interaction or marketing material. If your brand is significantly cheaper, faster, luxurious, organically produced or made in America, it is important that your customer is supremely aware of this trait. One example to model your brand strategy after is Shinola, who very clearly delivers their brand promise of top-of-the-line style and luxury products via different online, television and physical marketing platforms.

2. Misguided Price Points

One of the key value propositions of DTC brands from a customer’s perspective is a lower average price point. DTC brands achieve success by forming long-term relationships with their customers, so rather than trying to get the most profit out of each individual transaction, the goal in this system is to improve customer relationships by providing the most value along each step of the way. This methodology leads to more return purchases and brand evangelists, ultimately leading to more profitability than a higher price point would incur.

3. Poorly Managed Partnerships

Brands throughout different industries use third-party partnerships to help reduce the amount of effort necessary to complete things like shipping, payment processing or website management. However, working with external organizations can make it challenging to retain a clear brand identity. If possible, your organization should strive to control as many aspects of the customer journey to ensure they are making it as easy as possible for the customer along the different touchpoints. If an organization does wind up working with a third-party brand, it is important to have measurement systems in place to ensure they are retaining the desired brand identity.

4. Misinterpreting Customer Feedback

The ability to capture and process customer feedback can yield extremely valuable information to a brand looking to improve its Customer Experience. However, many brands do not have systems in place to acquire this kind of information, and once they have it they do not know how to turn that into tangible changes. Measurement and self-assessment are two core pillars of a brand’s Customer Experience capabilities, so it is important to ensure that your brand is working with experts who can transform customer feedback into actionable objectives.

Direct-to-consumer selling is a growing field that is penetrating virtually all different industries. Some brands are solely DTC-based, while others are adding it to their omnichannel platform. Regardless, this sales strategy is important because it helps brands form better customer relationships, and grants them the ability to learn valuable information about customers from these relationships. Avoid these problems so your organization can utilize DTC as part of an overarching brand strategy.

Frequently Asked Questions

What are common mistakes brands make in direct-to-consumer selling?

Brands often fail at direct-to-consumer selling by not fully understanding their audience, neglecting customer service, lacking a clear brand message, and underestimating the logistics involved in distribution.

Why is understanding the audience crucial in DTC selling?

Knowing the audience helps tailor marketing strategies and product offerings, ensuring they meet the specific needs and preferences of the target demographic.

How can brands improve their DTC strategies?

Brands can improve by enhancing customer interactions, streamlining logistics, and maintaining a strong, consistent brand presence.

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