D2C Trendsetters: Unboxing the Secrets of Digital-Age Brand Magic

D2C as a business model has evolved over the years. In current times, D2C the term can be referred to as “direct-to-consumer plus” which emphasizes the usage of integrated marketing campaigns across various selling channels, customized customer experiences, and subscription-based models we’ve come to be accustomed to. This evolution offers lessons that all brands can learn and apply to their ways of working. 

Leveraging Social Media and Influencers

78% of consumers are influenced by social media posts. This means that social media platforms like Instagram, TikTok, and YouTube are the first touchpoints with the consumer (instead of a Google search). Therefore, it’s key that brands apply learnings from D2C or digitally native brands to their overall strategies.

Here are two examples: 

• Crumbl Cookies utilises its weekly rotating menu and hype of the weekly drop of new flavours to invite users to engage and drive hypergrowth of its following on TikTok along with its expanding footprint. This has led to growth of 1500% in follower growth and a reach of 22M.
• Beauty of Joseon’s Relief sun sunscreen, which went viral on TikTok (especially with the latest tinted sunscreen launch) due to influencers’ reviewers and gained worldwide recognition.

On top of that, 86% of consumers make a purchase inspired by an influencer at least once per year. Working with influencers and having users generate positive content related to your products will support D2C brands.

Using AI all around to improve customer experience

86% of leaders using AI have shared that it’s enhanced their ability to scale their customer service operations and enhance the customer experience. Companies like ride-hailing service Grab have been able to decrease operational costs and decrease backlog with Ada, a customer service platform powered by AI.

Physical Packaging is part of the exciting shopping experience

A huge part of the consumer experience is when people finally receive the much-awaited package in their mailbox. Many D2C brands design packaging that creates a memorable unveiling experience for the consumer. This provides an additional opportunity for brand followers to share on social media platforms. Some brands have further reinforced this behaviour by providing additional prizes for consumers who share their photos of the product and tag the brand in their social media posts.  

Beauty brands like Glossier have mastered the art of leveraging online channels and viral content to build a devoted following. Originally launched as an online beauty blog, Glossier has grown into a $1 billion brand in just a few years. Its physical packaging is minimalist, complements each other when placed side-by-side, and is packed in pink bubble wrap, making very social media-friendly content. This allows Glossier another channel to contribute to the consumer experience.

Hyper-Personalisation 

Haircare brand Prose has achieved a balance between simplicity and hyper-personalisation. The ordering process starts with a questionnaire which delves into various aspects of a consumer’s life, including skin type, lifestyle, and environmental factors that affect their hair. Using AI-powered algorithms, the platform then processes this information to recommend a customized formula that addresses the user’s specific hair concerns. This approach eliminates the need for consumers to tediously search through multiple brands for suitable ingredients, instead delivering a tailored product that meets individual needs. The result is a more satisfying and efficient shopping experience for the consumer.

Subscription Models

The global subscription box market is expected to reach a remarkable $71.77 billion by 2028 – plus, who does not love regularly receiving boxes with new products in the mail? Subscription-based D2C brands like Hook Coffee are good examples of simplifying the purchase process for busy multitaskers. Consumers can choose the type of coffee they like and ensure the beans are ground to fit the way they drink their coffee. If they struggle with choosing, they can request to receive a new flavour with each delivery and choose their delivery schedule based on their consumption. 
 
D2C brands have mastered understanding consumer needs and enhancing the shopping experience in today’s busy marketplace. Their strategies offer valuable lessons for all brands to succeed in today’s age.