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Even Big Brands Need a Direct-to-Consumer Strategy

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Even Big Brands Need a Direct-to-Consumer Strategy

Boston Consulting Group,

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You think your company isn’t meant for direct-to-consumer sales? Okay, but prepare to get left in the dust.

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8

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Recommendation

Want to know where demand is headed so you can keep up with trends? Of course – but to do so, your brand needs data and direct feedback from your customers, and you’re not going to get that from traditional retail spaces. Direct-to-consumer strategies aren’t the realm of online-only, digital-first start-ups anymore, and the Boston Consulting Group explains why in this special report. 

Summary

Direct-to-consumer (DTC) sales give companies direct access to customer data, which can drive innovation, personalize the customer experience and ultimately maximize customer lifetime value.

Recent years have seen an explosion in e-commerce. Even slow online sales categories like foods and beverages grew by 67% from December 2019 to May 2020. There was a time when brands worried that implementing a direct-to-consumer aspect to their overall sales strategy would create competition for traditional retail and water down their overall business plan. Now, it’s accepted that adding a DTC aspect is vital, even for big brands. From customer acquisition to product innovation, a direct-to-consumer approach helps companies collect data that will ultimately help the company reduce costs, minimize waste and maximize customer lifetime value. 

Using the traditional “design-make-sell” model, retailers could only make educated guesses about consumer preferences, then wish for the best. When your company owns your...

About the Authors

Dan Bodley, Andreas Liedtke and Pinar Tekin are professionals with the Boston Consulting Group.

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