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How DTC Brands Can Thrive in Today's Competitive Landscape!

Nov 22, 2021

Consumer brands have been seeking to establish direct relations with end customers for a range of reasons: to generate deeper insights about consumer needs, to maintain control over their brand experience, and to differentiate their proposition to consumers. Increasingly, they also do it to drive sales (see sidebar, “Why go direct?”).

For any brands that have considered establishing a direct-to-consumer (DTC) channel in the past and decided against it, now is the time to reconsider. COVID-19 has accelerated profound business trends, including the massive consumer shift to digital channels. In the United States, for example, the increase in e-commerce penetration observed in the first half of 2020 was equivalent to that of the last decade. In Europe, overall digital adoption has jumped from 81 percent to 95 percent during the COVID-19 crisis.

What’s stopping you?

  • “I’m worried about fulfillment. What if we disappoint online shoppers? I don’t think they will have the patience to allow us to try again. We only have one shot to get this right.”
  • “There are so many variables. You need a pricing engine. Payment. Order tracking. Delivery. Returns. There’s no end, and we have never done any of this before.”
  • “Won’t DTC just cannibalize all my other channels, possibly at higher cost? What if it brings down our profitability?”
  • “Building an e-commerce channel would absorb a lot of resources, and I’m not sure it would add much revenue. We have bigger fish to fry.”
  • “We are great at making things, and we are good at managing partners. But when it comes to selling directly to consumers, we don’t really know where to start.”

By having a deliberate strategy that clearly qualifies the opportunity and an execution capability to effectively convert customers at a reasonable cost, consumer companies can overcome these concerns and set up a profitable new source of growth.

Personalization operating model: Consumer brands need to be able to adapt their ways of working to rapidly changing customer preferences. Building out an agile operating model enables small, cross-functional teams to work in short sprints to iterate on products and services based on customer outcomes. Having a personalized operating model grants you the ability to offer personalization at scale to all of your customers!

 E-commerce Personalization

Personalization; It’s got everybody’s attention and is the fast-emerging norm of the e-commerce world.

Businesses across the spectrum small and big are looking to optimize their platforms by implementing e-commerce personalization, but very few have fully embraced personalization in its true essence and achieved a level of personalization that is both effective and seamless.

If you’re looking for inspiration on how to personalize or some convincing on why to personalize, then look no further. Here at AGP we specialize in just this! Our 4-step process can be easily integrated into any business size within 90 days or less! 

We have worked with hundreds of business owners and have had countless success stories using this same 4-step process. 

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