Exploring D2C fundamentals

Selecting the right tech stack is critical to delivering success in today’s digital landscape, as it influences everything from user experience to scalability and operational efficiency.

Before running a vendor selection process, consider these questions:

• Will your tech teams play an active role in the development of your D2C platform?

• What is the channel complexity of your D2C business? Multiple markets? Physical stores?

• If you’re starting from scratch, could an out-of-the-box solution deliver what is needed before scaling to an enterprise-grade solution?

If you are looking for support in running a D2C Tech vendor selection, we can help, so get in touch.

To support the technology solution, we recommend building a data measurement framework. A data measurement framework allows you to collect, analyse, and interpret data to make informed decisions, and to identify what's working and what needs improvement, therefore continuously enabling you to refine your D2C strategy. While there’s no set formula for what a measurement framework looks like, below is a high-level example of our approach to taking a strategic business goal and breaking it down into measurable KPIs.

For more information on how to form a measurement framework, reach out to our Data & Analytics Practice.

Research shows that, even if people love a company or product, 59% will walk away after several bad experiences, and 17% after just one bad experience according to PwC. This showcases the importance of a strong customer experience.

A seamless shopping experience, personalised post-purchase engagement, and responsive customer support are strategies that can deliver a sustainable competitive advantage, bolster customer satisfaction and increase repeat purchases.

At the same time, creative branding and marketing can help to attract and engage customers, foster recognition and boost loyalty.

Your D2C model needs a clear customer proposition that highlights a compelling reason for consumers to purchase through your site over the many other options available. Identifying your USPs and building a commercial strategy around them will help you to stand out and validate a purchase decision.

There are three key steps to enable successful execution of a D2C commercial strategy…

• Robust trade planning that supports the customer proposition and aligns to key internal and external calendar events.
• Establishing governance of long-term objectives whilst negotiating short term market conditions.
• Establishing reporting tools to identify KPIs, track site performance and draw actionable commercial insight.

When 48% of consumers confirm that, when it comes to delivery, the number one change would be “faster delivery”, they’re not pointing at Amazon. In fact, marketplaces like Amazon have set the benchmark for delivery. So, in order to drive retention and loyalty, brands must ensure that the last mile delights customers and encourages repeat purchases.

With last mile delivery accounting for up to 50% of supply chain costs, logistics and operations are the backbone of D2C. Getting it right can lead to long-lasting customer satisfaction and have a huge impact on your profitability and brand perception.

Before you choose delivery and logistics partners, identify your fulfilment needs and scalability requirements.

Define your planning processes and communications channels early and embrace technology to optimise demand planning, stock levels, and minimise wastage.

Finally, invest in a customer service solution that provides multiple channels of communications and identify where automation and AI can simplify the customer experience.