The direct-to-consumer (DTC) model is on the rise, but it’s definitely not new. No, the DTC model has been around for some time, disrupting some of the biggest legacy CPG and beauty brands on the market. Consider the shaving industry, which was once ruled by Gillette. The $3.5 billion per year industry was turned on its ear by the introduction of Dollar Shave Club, the DTC subscription shave company that was eventually acquired by P&G (Gillette) competitor Unilever.
That wasn’t the end of the DTC shaving story, though. The success of Dollar Shave Club was too big to ignore. That’s why Unilever kept the model intact and introduced more products developed specifically for the Dollar Shave Club audience. Gillette tried its hand at subscription models to deliver razors and shaving accessories to customers. Then, along came Harry’s and now Billie’s for women.
The shaving industry is just a small piece of the very big picture that is direct-to-consumer sales. You probably recognize several other DTC companies, including:
- Warby Parker
- Bonobos
- Everlane
- Tieks
- Rothy’s
These apparel companies have paved the way for CPG brands to develop DTC models, too. Some of the food, beverage, and beauty brands climbing aboard are:
Some of these DTC brands may have already disrupted your market, but that doesn’t mean you can’t catch up. Developing a DTC model takes work and serious marketing, but you can quickly catch up.
An integrated marketing strategy is crucial, starting with a deep understanding of your brand. Let’s take a look at some additional marketing tactics.
Know Your Audience
Does your target audience prefer to buy online? Would they like to skip the store whenever possible and have their favorite products delivered? If you’re dealing with younger Gen Xers, Millennials, and Gen Z, then yes, this is most likely true.
You don’t just need to know your audience to determine if you should develop a DTC model. You also need to know how to reach them. These consumers live online, so that means you’ll need to know where they are in order to get your brand in front of them.
Overhaul Your Website
The hallmark of DTC brands is a clean, crisp, easy-to-navigate ecommerce website. Take a look at some of the examples listed above. You’ll see on-brand imagery and video, plenty of information about the products, and buttons to help buyers shop for what they need.
A good ecommerce website requires much more than just a shopping cart, however. Make sure the site is secure, with information displayed to give buyers peace of mind. Provide shipping information up front so they aren’t surprised when they’re pulling out their credit card. Share reviews and social media posts for social proof. Finally, make contact information easy to find, especially customer service, because sometimes things go wrong.
Social Amplification
The strongest form of marketing is still word-of-mouth, and that happens through social media. You know your audience, so you know where they live. Facebook is still the top spot to find your customers, regardless of their age, occupation, income level, or geographic location. That doesn’t mean you can create a Facebook page and forget it, though.
Many brands have found the sponsored post advertising model on Facebook is the best way to introduce new buyers to their products. These posts are targeted to your specific audience in a way that appears natural and interesting when the ads appear in their timelines. You can also add a “shop now” button to grab those buyers who’ve been waiting for their next interaction with your company to make a purchase.
But don’t rely entirely on Facebook. Remember that your buyers may be cruising other social media sites, and you need to be where they are. In fact, in the beauty and CPG space, Instagram may be your most powerful social media tool, especially if your target audience is made up of Millennials and Generation Z. You can use sponsored posts to reach target buyers even if they’re not already following you, and add a “shop now” button just like Facebook offers.
These platforms offer rich marketing assistance, including A/B testing, which is very necessary if you want to get your messaging and imagery just right. You can also create offers within the platform, such as discounts and promotions, and even sell directly from Facebook and Instagram.
Find Influencers
Talking about your own products can only get you so far. That’s why so many brands have turned to influencers to help amplify their social messaging. You don’t need the clout of a massive celebrity to win over your target audience either. Depending on the size of and purpose behind your brand, you could work with advocates (<5,000 followers) and micro-influencers (5,000-25,000 followers) and see a higher engagement rate than celebrity influencers.
Not only do advocates and micro-influencers see higher engagement rates with their posts, they also tend to post on behalf of their brands three times more often. More influencer posts plus higher audience engagement equals big exposure for your direct-to-consumer brand.
Focus on Getting Found
Advertising on social media is a great way to introduce your buyers to your products, but it’s not the only avenue you have available. Google is still a powerhouse when it comes to getting brands found, and you can use that to your advantage.
While on-page SEO and social media accounts can go a long way toward driving your page to the top of search results, these methods take time. Consider a Google ad campaign that covers search, display, and retargeting to keep driving traffic to your website. Search ads can even help you cut away at your competitors as you snag searchers who come across your brand at the top of the search results instead of the company they were looking for. Display ads can catch eyes on internet articles and in the sidebar of informational websites (such as weather.com) so you can introduce your brand on a bigger stage.
If you’re planning to launch a direct-to-consumer CPG or beauty brand and need some help reaching your audience, we’re here for you. Just reach out and let us know what you need.
