From Clicks to Loyalty: How D2C Brands are Automating Customer Relationships | by Sohil Shah | Spreadd | Apr, 2023

Direct-to-Consumer (D2C) Brands: The Unstoppable Force Taking the Retail Industry by Storm

In recent years, the e-commerce industry has witnessed a groundbreaking revolution with the rise of direct-to-consumer (D2C) business models. These innovative companies have completely disrupted the traditional retail models by creating unique, high-quality products to meet modern consumers’ specific needs and preferences. They have derailed the traditional supply chain by taking full control of the end-to-end processes, from product design, manufacturing, marketing, and sales, to shipping, all under one roof. Whether they are emerging startups or established industry players, D2C brands are rewriting the rules of retail by cutting out the middleman and bringing their products straight to the consumers through their online stores.

Moreover, these brands have leveraged the power of e-commerce and social media to reach new audiences and build lasting relationships with customers. As a result, D2C brands have become a force to be reckoned with, driving innovation across a range of sectors. From skincare to furniture, D2C is reshaping the way we shop and experience products, and it’s showing no signs of slowing down.

Changing Face of Consumer Buying Preferences and D2C Growth

Recent statistics indicate an average consumer buying sensibilities have gone under a paradigm shift. It seems like the traditional shopping experience just isn’t cutting it for consumers anymore. Consumers are demanding personalized experiences and hassle-free shopping from the comfort of their own homes. That’s where Direct-to-Consumer (D2C) brands come in, offering the perfect combination of digital convenience and physical store shopping. It’s no surprise that more and more consumers are flocking to these brands for their shopping needs. In 2022, a whopping 64 percents of shoppers worldwide were regularly buying products straight from the brand itself! And it’s not just about the convenience factor. D2C brands have gone above and beyond to provide a complete and immersive shopping experience. From product customization to cutting-edge digital solutions, D2C brands are raising the bar when it comes to consumer satisfaction. Add in the perks such as loyalty programs and quality enhancement initiatives, the random clicks are getting turned into brand loyalty. The result? The astronomical growth of retail e-commerce is projected to reach US$7.4 trillion by 2020–25, growing at a CAGR of 12 percent. In fact, the D2C e-commerce industry in India is expected to grow at a CAGR of 34.5% from 2022–2027.

Use of Automation to Redefine the Retail Experience.

Direct-to-Consumer (D2C) brands constantly strive to keep up with the latest trends to drive growth. To achieve this, they need to have a few key tricks up their sleeves, such as short turnaround times, customizable products, compelling content, multi-platform marketing, and personalized consumer-brand relationships.

But with trends changing at lightning speed, it can be a challenge to stay ahead of the game. That’s where AI and related technologies come in — more and more brands are turning to these powerful tools to build their personal brand, nurture consumer relationships, and fuel their growth.

Automation has several benefits that help D2C companies in brand building:

• Saves time and resources: Automation allows for certain tasks to be completed quickly and efficiently without the need for human intervention. This means businesses can focus on other important tasks that require human expertise.
• Increases efficiency: By automating certain tasks such as email marketing, social media posting, and customer service, businesses can operate more efficiently.
• Improves accuracy: Automation can help reduce errors and mistakes that can arise with manual procedures. This means that businesses can offer their clients a more trustworthy and consistent experience.
• Personalization: Automation tools can assist brands in personalizing their communication and marketing efforts. Businesses can tailor their messaging to each customer’s preferences by gathering and analyzing customer data, increasing the probability of engagement and sales.
• Scalability: As a company grows, automation can assist in managing the increased workload without the need for additional personnel. As a result, businesses can expand without incurring significant expenses.

Here are a few ways D2C brands can leverage automation for better consumer relationships:

1.Chatbot customer service: Chatbots are automated tools that can engage with customers in a conversational way, answering their questions while also reducing the workload for customer service teams. One of the main benefits of chatbot customer service is that it can provide 24/7 support to customers, regardless of their location, business hours or time zone. This can be especially useful for D2C brands that sell globally and have customers in different parts of the world. Customers can engage with a chatbot and receive immediate assistance leading to a better overall customer experience and increased customer satisfaction.

D2C companies can provide chatbot customer service via a variety of channels, including messaging platforms such as WhatsApp, Facebook Messenger, and WeChat. For example, a direct-to-consumer fashion brand may use WhatsApp to provide customer support. Customers can send a message to the brand’s WhatsApp number and receive an instant response from the chatbot, which can answer commonly asked questions, suggest products, and assist customers in tracking their orders. This can provide customers with quick and convenient help while also freeing up customer service teams to concentrate on more complex issues.

In the world of D2C marketing, staying on top of the latest product launches and campaigns is key to success. And with the power of chatbots, brands can now provide their customers with real-time notifications about upcoming releases and promotions.

Take Spreadd, for example, where we use Whatsapp automation to streamline the end-to-end digital campaign process. By sending alerts about upcoming digital marketing campaigns, thank you messages, brand acceptance/rejection messages, and other associated messages, Spreadd ensures a seamless and pleasant experience for brands and creators on their platform. This streamlined communication not only saves time and resources for all the parties but also ensures that brands and creators are always up-to-date on the latest developments.

2.Personalized automated emails: Automation allows D2C brands to send personalized communication to their customers based on their behaviour, preferences, and purchase history. The use of automated emails is getting increasingly popular in D2C brand marketing. For example, D2C brands send personalized welcome emails to new customers, making them feel valued and building a strong initial relationship. Or, by using automated abandoned cart emails, D2C brands can remind customers of products they left in their cart and provide an extra incentive to complete their purchase. Automated replenishment emails remind customers when it’s time to reorder a product they have previously purchased, making it easy to restock and maintain customer loyalty. Then there are behavior-based emails that suggest products based on a customer’s interests and previous purchases.

3.Push notifications: Push notifications are a potent tool that Direct-to-customer (D2C) brands can use to improve customer relationships. Push notifications are messages like SMS’es that are delivered directly to a user’s device, such as a smartphone or tablet, and can provide consumers with timely and relevant information. A D2C beauty company, for example, might send a push notification to customers announcing the launch of a new product line, giving an exclusive discount code, or reminding customers to reorder previously purchased products.

4.Automated surveys: Automated surveys are a useful tool that Direct-to-Consumer (D2C) brands can use to improve consumer relationships. Brands can quickly and easily gather feedback from their customers by automating the survey process, enabling them to identify areas for improvement and make data-driven decisions. They can be delivered via email, SMS, or within a brand’s mobile app or website, allowing customers to provide feedback at leisure.

Based on a customer’s behaviour and preferences, automated surveys can be customized, enabling businesses to collect more relevant and targeted feedback, resulting in more personalized and tailored experiences. This, in turn, can increase customer satisfaction and loyalty because consumers feel heard and valued.

5.Automated loyalty programs: Loyalty programs are managed in real-time via automation, eliminating the need for manual CRM, customer tagging, API integrations, and customer data management updates. This enables D2C companies to concentrate on creating an effective multichannel marketing strategy, improving the customer journey, and achieving overall growth without having to worry about the intricate details of loyalty program management. Furthermore, customers signed up with loyalty programs get automatically rewarded for purchases and incentivized to continue shopping with the brand. These programs can be integrated with a brand’s e-commerce platform or mobile app, allowing customers to earn and redeem rewards for their purchases quickly.

Customers who join loyalty/reward programs are like VIPs to a brand. They are repeated customers and also refer their favourite brand to their friends and peers, which makes other people interested in your brand too. This way, a community of loyal customers grows around your brand. and automation makes the whole process more streamlined, cost-effective, and time-saver.

The final word

In today’s fast-paced and ever-evolving e-commerce landscape, D2C brands that want to succeed must keep up with the latest trends and technologies. And when it comes to building strong customer relationships, there’s no denying that automation is a game-changer.

By automating customer interactions through chatbots and AI, D2C businesses can offer personalized experiences that leave a lasting impression. And with marketing automation, they can streamline their operations, optimize their campaigns, and ensure timely communication with their customers.

So if you’re a D2C brand looking to advance your consumer relationships and stay ahead of the competition, embracing automation is the way to go. With the power of automation at your fingertips, you can provide exceptional customer experiences that will keep your customers coming back for more.

Follow Us! Stay up to date with the latest at Spreadd:

Website | Twitter | Telegram | Youtube