Address end consumers directly

D2C-e-commerce

At valantic, we put end customers at the center of everything we do every day. In principle, we’re not doing anything else in D2C e-commerce. But what exactly does direct-to-customer mean, and who benefits from direct sales? Let's find out together!

What is the difference between B2C and D2C?

Explanation & classification

In contrast to B2C (business-to-customer), D2C (direct-to-customer) stands for direct sales from manufacturers to end consumers. Contact and interaction with customers take place directly via the company’s web store. As a result, distributors and retailers are increasingly disappearing from the supply chain. This approach is particularly popular with start-ups. A distinction is made between …

  • companies that start with D2C and only go into local retail when demand is high enough (e.g. Oatsome or Justspices) and
  • companies that are not even represented in stores and are nevertheless – or perhaps precisely because of this – successful (e.g. Vorwerk or Canyon Bike).

Creating a desire among customers Probably the most important prerequisite for D2C

The product on offer must at least arouse interest – and in the best case, even desire – in end consumers. If this prerequisite is met, we believe there is a lot to be said for online direct sales: D2C allows for immediate and simplified access to the market. What’s more, companies retain complete control over the entire value chain.

Incidentally, this development does not mean that B2B is a thing of the past. D2C opens up new ways to connect with customers and sell products. From subscriptions to free delivery, the focus is on an excellent customer experience. In addition, access to data and its strategic use play an important role.

Strategic alignment of D2C e-commerce

These are the paths you can take

Customer experience, customer journey and data, increasing growth and success, driving digitalization: What do all these aspects have to do with D2C e-commerce? We’ll be happy to tell you!

1. Customer experience

valantic and D2C e-commerce have one thing in common: They consistently focus on customers. No other channel allows you to reach consumers as easily and directly. But direct selling does even more: It creates trust and loyalty, which ultimately has a positive impact on customer retention. Do you want to turn customers into real brand enthusiasts? What retailers can hardly achieve, D2C can do wonderfully well.

Graphic: Loyalty Lifecycle

2. Customer journey & data

With D2C, you can keep an eye on the entire funnel thanks to direct access to all relevant data. In this way, D2C is challenging conventional sales channels for market share. In this context, speed is of the essence – a factor that should not be underestimated when all channels have to be used in a self-directed manner.

Classic brand loyalty was yesterday! Today, many consumers show a willingness to try out new brands. It has long ceased to be a question of what one is familiar with – instead, it’s about which companies offer the best possible customer experience. Consumers are increasingly comparing and choosing unique buying experiences.

3. Increase growth & revenue

D2C e-commerce makes it possible for companies to skip an entire retail stage. This strengthens independence and increases margins. In addition, manufacturers have opportunities to exclusively distribute products and services that cannot be found in retail. These include, for example:

  • personalization
  • bundles
  • being able to offer all products without exception
  • communities or forums
  • special financing or maintenance

4. Acceleration of digitalization

E-commerce has been a driver of digitization for quite some time now – and D2C takes this to a whole new level that is extremely close to the customer. After all, nothing contributes as directly to the customer experience as D2C in e-commerce. And with years of industry experience, valantic is your ideal partner for successful implementation.

Graphic: strong driver of digitalization

Direct-to-Customer

Benefits & advantages From the point of view of companies & end customers

More and more companies are using an online store – and brands like Nike and Adidas now generate over 30 percent of their sales directly with end consumers. So who benefits from the direct-to-customer sales model? We at valantic know: Both the companies and the end consumers do!

Benefits for companies

  • better customer relations through direct contact
  • more information about customers for a targeted approach throughout the entire funnel
  • greater independence and control over the brand, products, pricing and image
  • insights into consumer behavior gained through data as a possible basis for effective market research
  • higher profit margin
  • higher cross- and up-selling potential
  • products can be adapted to customer wishes at short notice

Benefits for end customers

The multiple benefits of D2C e-commerce for companies also result in two decisive advantages for end consumers:

  • The price of products and services may be lower because the usual retail surcharges are eliminated.
  • The business model enables direct contact with manufacturers.

D2C e-commerce at valantic

Because no challenge is too big

Before you can celebrate your D2C e-commerce successes together with valantic, certain prerequisites must be met within your company:

  • comprehensive understanding of the customer journey
  • well-prepared customer data, whose benefits are known
  • service & accessibility: Customers expect the manufacturing company to be accessible and to provide them with appropriate expert purchasing advice. The same applies to customer service, for instance, when it comes to product use or ordering the right spare parts.
  • understanding and capacities in marketing
  • establishing fulfillment structures that can ensure an excellent CX – from purchasing processes and logistics to returns and services.
  • Particularly important in this case: considering small quantities of one piece or a handful of pieces.

 

Also relevant: Direct-to-customer sales result in higher costs for marketing, customer support and order processing. At the end of the day, these costs must not exceed the additional profit made from better sales figures.

D2C e-commerce is a path you want to take?

Just give us a call!

“Guten Tag” from Munich

+49 2173 849 889 12

Dr. Matthias Blauth

“Grüezi” from St. Gallen

+41 71 313 55 70

Reto Rutz

"Servus" from Salzburg

+43 662 876 606 199

Dietmar Rietsch