Acquiring Consumer Intelligence through a Direct-To-Consumer (DTC) Strategy
Author: Mauricio Del Hierro
Direct to Consumer (DTC) strategy is simply explained as a channel for manufacturers to sell directly to customers, bypassing retailers and distributors to create a personalized, targeted 1-1 experience between the manufacturer and the customer.
While tactical DTC programs, such as web pages and mobile apps, represent a marginal percentage of sales for big Consumer Packaged Goods (CPG) and Fast Moving Consumer goods (FMCG) companies, these tactics have grown in volume and are rapidly gaining traction as companies look to learn more about their customers in order to increase share of the wallet. In many cases DTC programs that started as an initiative or pilot program have taken on a life of their own, receiving significant marketing budgets to target the millions of shoppers who want peer-to-peer relationships with their favorite brands.
Initially, the big CPG manufacturers thought a DTC strategy would cannibalize retail sales, impacting the complex relationships between manufacturers, retailers and consumers. But, CPG manufacturers have since realized that the DTC channel can be used as a way to educate and inform their installed base of customers, increasing brand affinity and driving incremental revenue from consumers who seek tighter relationships with their brands of choice.
At the same time, brands that market Direct-to-Consumer as a strategy, are able to collect vital data on consumer shopping behavior and preferences. This data is “gold powder” for CPG’s. The data that can be extracted from each receipt tells a story about each buyer, their purchasing habits, brand affinities and price sensitivity. Manufacturers, and retailers alike, can no longer afford not to collect this data. A DTC strategy gives brands the opportunity to segment consumers, test market promotions and personalize shopper experiences.
Know your customer; a DTC strategy will help to increase sales through personalization: data enrichment with traditional channel sell-out data, competitive data and cross-product purchasing patterns. But, the actionable insights gained from the data collected through a DTC strategy might be the most valuable contribution.
Veryfi Lens is a fast and accurate receipt scanning and data transformation solution for DTC and loyalty programs. The customer data captured from these receipts enable actionable insights into customers who purchase your products, enabling and enhancing a truly personalized, omni-channel marketing experience. Better yet, connecting this data to an existing profile will yield insights that can drive new product development, increase cross-selling and rapidly deliver personalized solutions. Data is the new oil and actionable insights are gold. Companies must quickly take action on new, data-driven consumer insights in order to “hit the customer” first with new offerings and promotions. Those companies that don’t will hit the canvas.