Why CPG Brands Should Adopt a Direct-To-Consumers Strategy
Consumer Packaged Goods companies traditionally reach their customers via a chain of retailers and distributors. However, in this approach, the companies have no direct contact with the customers, and consequently, no accurate customer data. Additionally, companies lack the chance to strengthen their customer relationship and build consumer insights or bring innovations in products based on those. As a result, more and more CPG companies are embracing the future of retail--D2C-- and transforming digitally.
A key finding from Brandshop's Digital Consumer Preference Survey, 2018, where over 1,000 U.S. citizens participated, highlights that:
- 87% of the participants would prefer purchasing from a brand online if they could.
D2C sales strategy empowers CPG companies to create a unique buying experience from start to end, strengthen customer relationships, and collect detailed, accurate customer data.
For one of our clients and F& B giant, we had established a direct-to-consumer platform that aimed to integrate with various touchpoints, offer a personalized service to consumers, and equip the company with tools to collect and analyze data. Read the full case study here.
In this article, we will shed light on the following benefits of D2C for CPG brands:
Controlling each element of the buyer's journey
Foster customer relation
Gain deep customer insights
Making omnichannel commerce a reality
Importance of D2C Strategy for CPG Companies
Controlling Each Element of the Buyer's Journey
In the traditional method, brands have control over the packaging and advertising of their products. But, what about the customers' buying experience once the products hit the shelves?
Companies in no way can personalize the entire buying experience with this strategy. However, by establishing direct customer touchpoints, CPG brands can offer their customers unique experiences and influence their shopping journey.
Personalizing the customer journey leads to higher engagement, better communication, and a more substantial influence on sales.
Foster Customer Relation
The ability to control the entire experience ensures you offer a sound buying experience, resulting in better customer relationships.
Furthermore, selling directly to the customers empowers the brands to own the customer relationship and talk to them without any third-party involvement.
Brands have tools that help them understand their customers better and make a data-driven decision that further strengthens the customer relationship.
Gain Deep Customer Insights
Being in direct contact with the customers, undeniably allows brands to collect profound, accurate results unparalleled to other market research methods.
The company can look into the demographics, lifestyle, buying behavior, preferences, and other data. This data enables the business to make accurate marketing decisions and create a better product roadmap.
One of the most significant advantages of going D2C is the flexibility to offer a personalized service to your customers.
By selling directly to the customers, companies can offer a totally different service.
Example: customers can select their preferences--from packaging to mixing various assortments--customers can create their own products.
Making Omnichannel Commerce a Reality
Besides creating a unique experience, companies can create an omnichannel strategy where customers can shop from various points and have a seamless experience.
The freedom to buy from multiple channels lets the customer shop at their convenience and get the product either from the store or home-delivered.
With headless commerce, it's possible to create D2C commerce where customers can have a seamless experience across various channels.
For one of our clients, one of the world's largest F& B companies, we deployed the Headless Magento B2C e-commerce platform that would enable the company to:
Create a personalized buying experience
Collect rich customer insights
Make data-driven decisions
Enhance customer relationship
Step into d2c landscape for the first time
Should CPG Brands go D2C: the Bottom Line
The undeniable benefits of the D2C platform reflect the importance of accelerating the path of digital transformation to capture users' attention, engage them online, and create a lasting experience.
To know how Zyxware Technologies can help you transform your digital presence, and establish a direct-to-consumer platform, contact our experts today.
We deployed a Direct To COnsumer Headless Magento B2C e-commerce platform for a Multi-Billion Dollar Consumer Packaged Goods company.
Brandshop's Digital Consumer Preference Survey: https://brandshop.com/2018-consumer-preferences-survey/ (PDF) Accessed January 2021.