The growth in D2C e-commerce has been phenomenal in the past years across the globe. In India alone, more than 800 D2C brands have emerged in a short period, with a combined revenue of $12 billion in FY22. The Indian D2C market is growing at a CAGR of 40%. As per CII, the combined revenue is expected to reach $60 billion by FY27.
The COVID-19 pandemic forced many customers who were hesitant to shop online to adopt digital platforms, and they have never looked back.
As the D2C boom continues to happen in the post-pandemic era, a comprehensive customer engagement strategy is instrumental for the success of digital-first brands amidst this D2C explosion.
What is a D2C (Direct-to-consumer) Business Model?
D2C refers to the practice of selling a product directly to the consumer via a company’s own website or mobile app without involving third-party retailers and distributors.
What makes D2C brands stand out from traditional businesses is their ability to establish a direct connection with their customers. This is made possible by gaining an insight into consumers’ behavior and interests and crafting the user experience based on real-time inputs from customers, thereby maximizing both consumers’ commitment to the brand and their lifetime value.
6 Effective Engagement Strategies for D2C Brands
Let’s look at some of the effective customer engagement strategies D2C brands can adopt to foster a long-term bond with their consumers.
1. The Impact of Storytelling
Humans feel more connected to stories than anything else. Hence, storytelling is critical for brands to engage customers.
Communicating the purpose of the brand through stories with the right people on the right platforms influences them to consider the brand over its competitors.
The journey of the brand, its vision, values, and ethos, and how they are different from other brands are often shared with consumers through compelling stories.
2. Data-driven Communication Fosters Deeper Engagement
One major benefit, among others, of the D2C business model is the access to customer data. Understanding customer demographics, shopping habits, interests, and preferences enables brands to personalize their communication and product offerings to suit customer needs.
Personalized product recommendations based on viewing history and past purchases instantly connect customers with the brand. Based on this insight, offering exclusive discounts, sending price drop alerts, etc., over different communication channels makes consumers feel valued and boosts customer retention.
3. Harnessing the Power of Content
Today we consume content like never before. Brands need to leverage this opportunity and engage users with content in various forms, such as personalized messages, newsletters, blogs, User-Generated content, podcasts, etc.
Making the content available and accessible on different communication channels is key to an omnichannel customer engagement strategy. Also, peeking into the data to understand which channel is preferred more by consumers, and which content has better views, click-through rates, and shares helps brands modify and sharpen their content strategy to engage users effectively.
4. Creating a Feedback Loop is Fundamental to D2C Customer Engagement
The ability to gain insights into customer behaviour equips D2C brands to tailor their offerings to customer preferences which helps engage the customers with the brands.
In order to strengthen this engagement, the brands need to create an effective feedback system where customers feel that they are heard.
At important stages of the customer journey, it is critical to capture user feedback, and reacting to the data is equally important.
Such a feedback loop helps brands constantly improve their products and make the user experience even better.
5. Boosting Customer Loyalty
As consumers are open to trying new products, there are more opportunities for newer brands to come up in the D2C space. But that also raises a concern about customer loyalty.
In addition to constant innovation and distinctive product offerings that meet customers’ unique needs, brands also need to build a well-designed loyalty program that offers real value to customers in return for their loyalty.
In order to be economically viable, brands must have a group of core customers who stick to them. With a combination of the right benefits and varied experiences, brands can create an effective loyalty program that helps consumers choose the brand over its competitors.
6. Gamifying User Experience
Brands are constantly vying for their customers’ mind share. As a result, users’ devices are flooded with notifications from brands. Mostly, such messages fall short of creating the desired impact on their customers.
Unlike this unidirectional communication, gamification can help brands create a fresh and memorable experience for their customers. With elements like challenges, competition, and accomplishment, Gamification can effectively influence customer behavior.
Conclusion
The above strategies would help D2C brands unlock the full potential of a sustainable customer relationship.
Consistently analyzing consumer behavior data and hearing about the experiences of users directly from them will enable brands to optimize their engagement strategies and achieve exponential business growth in the long term.
How can we help? Join the Revolution!
At this point, you might be wondering, “These strategies sound incredible, but how do I implement them?” That’s where Upshot.ai comes into the picture.
Upshot.ai isn’t just a platform; it’s a partner in your quest to redefine the customer experience. With our comprehensive suite of tools, seasoned expertise, and customer-first approach, we stand with you in your mission to WOW your customers in 2023 and beyond.
Originally published at https://www.upshot.ai.
