As consumers have shifted to online shopping to avoid trips to the grocery store, brands such as Pepsi and Clorox have begun investing in direct-to-consumer sales. But, to do it well, big CPG brands will have to master e-commerce and the myriad logistics that come with it. While diversifying channels is an essential part of growing business, they have to ask themselves, “If we build it, will they come?”
That’s a good question.
Successful direct-to-consumer brands aren’t defined by their model; they’re defined by their values. They’ve built their reputations on the virtues that are most important to today’s consumers: authenticity, transparency, and having a purpose that goes beyond the product or service itself. Moreover, they have a deep understanding of their audience and provide an elevated experience you don’t get from traditional brands.
Today, that experience is more important than ever. The global pandemic has disrupted supply chains and caused consumer spending to drop off a cliff. As a whole, U.S. consumers have cut spending across most categories, with groceries, alcohol, household supplies, and home entertainment among the few bright spots. And, as unemployment continues to grow, consumers will seek value in those categories, too. The brands that will prosper are those that offer something more, and that’s where direct-to-consumer brands with strong customer relationships and personalized experiences have an opportunity to win in the long run.
For big brands to win in the DTC environment, the difference is in the details. Although it may be convenient to order a box of snacks online, they’ll have to win with customer experience to differentiate from the likes of Amazon and Instacart. Here’s how they can do just that.
Understand the consumer mindset
When brands understand their consumers’ mindset rather than basic demographics, they instinctively know how to best build a long-term relationship with them. Mindset modeling can help brands deliver more impactful messaging and target those consumers who are most likely to be their next customer. Here, you can see some of our mindset work on a group we call the Zagonists.
Honor and exceed expectations
We know that consumers are attracted to brands that share their values. Ensure that the same messaging is clearly communicated and delivered at every touchpoint. Moreover, brands must demonstrate how they live their values and integrate that into every experience consumers have with the brand.
Create meaningful content and allow customers to engage
Whether it’s on social channels or through lifestyle-oriented video, podcasts, or newsletters, thoughtful content builds engaged communities. Invest in this relationship-building content and incorporate it into every aspect of your marketing mix — influencers, podcasts, virtual events, social, and email.
Create online and offline opportunities for people to experience your brand
Many brands are starting to navigate virtual experiences as an opportunity to build community around their brand. But, it’s not as simple as inviting consumers to a Zoom event. Brands need to think out of the box to create a unique virtual experience and engage their community.
If your brand is looking to create community and build awareness for its DTC offerings, contact us today to learn how we can help.