The modern retail world is simply inadequate with a single distribution channel. They are more focused on using a multi-channel approach that includes websites, mobile applications, social media channels, IoT devices, and many more. They bring brands a platter full of options to collect customer data and increase their understanding of customer behavior, interest, and future intents. Thus, it shows us that Direct-to-Customers (DTC) and omni-channel are about to exist together for a long time for retailers to level up in their journey of delivering customer satisfaction.
Customer relationship in the current world is more digital-centric, making digital channels the ideal source of retail growth influencing customer purchase rates. It reflects a close connection between DTC and omni-channel applications within businesses. Read how the power of omnichannel strategies for retail and e-commerce boosts conversions.
Intertwining DTC consumer model and omni-channel model
Traditionally, retailers selling their products through third-party distributors reduced their scope of higher sales rates. But with customers spending more time on online product searches, retailers have understood the necessity of connecting with the customers directly through online platforms and presenting the much needed product/service information to them. They are spawning the concept of the DTC consumer model that skips the necessity of maintaining an intermediary to execute a sale.
Oh! Did you just read something that sounds familiar to omni-channel? You got it right!
Omni-channel also provides a similar strategy for retailers to connect directly with their customers. But there is a tiny gap here; omni-channel includes multiple marketing channels integrated to deliver a unified experience to the customers across their spectrum. In simple terms, customers can navigate between channels to make their journey with the brand.
Nevertheless, both are used to create a balanced customer journey that helps retailers gain the target sales and profit along with a frictionless customer journey. Four principles are commonly grounded for scaling up their integration in retailers’ approach to control the customer journey.
- Deepening customer journey and developing its own identity
- Accompanying the customers beyond the initial transactions
- Omni-channel to hold value addition and not cost reduction
- Strengthening the core value propositions first
Going the omni-channel way for DTC Brands
Even though both omni-channel and Direct-to-Customers follow similar principles, there is a necessity for brands already equipped with the DTC approach to go with the omni-channel way more often to keep the essence of DTC intact.
What are the ways?
The ways are leveraging data and technology and combining digital and physical channels. Some of the significant ways to consider are:
Personalization and Augmented Reality (AR) – For customized marketing notifications and experiences, brands can use customer data, preferences, and behaviors, offering personalized product/service recommendations and customer service. Personalization can further include the usage of AR that lifts the real-world know-how for customers by combining digital information with the physical world and creating an interactive and immersive shopping experience for the customers.
Voice and Social Commerce – Using voice-enabled technologies and social media platforms to drive e-commerce sales has become pertinent. Brands can enable in-app purchases using smart speakers, virtual assistance, and user-generated content to showcase their services and products.
Brick-and-Mortar Stores – Providing the customers with physical touchpoints, Brick-and-Mortar Stores play a crucial role in elevating their ability to execute omni-channel marketing. Using options such as click-and-collect and in-store pickup/return, brands can make their physical stores stand out, generating a competitive advantage.
For instance, at Conneqt Business Solutions, we are helping brands retain customers through proactive customer engagement practices with the application of the Customer Lifecycle Management framework. With personalization as the key feature of this framework per the company’s goals, customer retention metrics are influenced. Capturing post-service customer feedback for 680+ ASC Networks & Customer VOC, clarity on the needed changes in company services is achieved.
Improved clarity on service challenges/profit factors enables brands to customize and improve their services, generating higher product/service usability for customers and increasing their satisfaction. We know that higher satisfaction is proportional to higher customer retention, indicating an increased lifetime value of their accounts, making them more loyal to the company, and reducing brands’ need to invest in customer acquisition initiatives. Therefore, less cost accumulates to a higher sales rate. Our comprehensive solutions and services help retail and e-commerce brands thrive in the marketplace and grow their business.
What’s in their future?
Needless to say, DTC and omni-channel are here to stay. The collective strategy of identifying customer data and using them to generate exclusive interactions with customers would help retailers attain a start-to-finish purchase journey. Direct sales to consumers help build the foundation for better relationships, which is further enhanced by applying omni-channel strategies. With voice interfaces, retailers are and will continue to shape their commerce by optimizing their existing supply chains, marketing strategies, and brand systems through a whole new method of interaction.
If you are in the retail marketplace looking for an efficient omni-channel retail strategy to stay ahead of the competition, Conneqt with us.