Convince Your Team to Go DTC

Now that we’ve covered why now is the time for your CPG brand to go DTC (missed that post? check it out here), it’s time to get the rest of your team on board. Here are some ways to approach the subject and get folks excited about the opportunity:

1. Let's increase the quality of the customer experience.

Customers today want to feel a connection with the brands they buy from, but it’s difficult to create this connection when a third-party retailer is in charge of the transaction. Going DTC allows you to own the customer experience—from personalization to packaging, from ease of checkout to customer service—you control the entire path to purchase and can improve the overall experience for those who buy.

2. There are so many benefits to first-party data. We need more of it.

When you have access to first-party data, the world is your oyster. You can survey customers, explore what actions customers take, target existing customers with new products and promotions, and ultimately create a stronger relationship with the customers you serve. It also gives you the opportunity for more targeted marketing efforts, which can help to reduce advertising costs. Plus, the more data you own outside of reports from retailers (which all of your competitors get), the more you can provide a unique experience for customers.

3. Imagine what we could do with a whole new sales channel.

For many CPG brands, DTC is a whole new sales channel with an incredible amount of potential. In fact, even before the pandemic, CPG companies were seeing around 70% growth from DTC ecommerce efforts.

4. We want to be nimble and able to adapt, especially as new competitors emerge.

In a competitive marketplace where it’s easier than ever for a small competitor to set up a brand and a website, you want to be able to adapt quickly. Quick access to data can enable a faster pivot. And the more you own the customer experience, the easier it is to make changes.

5. Let's increase our profit margins!

Ultimately, you can increase your profit margins with DTC because you are cutting out the third-party retailer. This is an opportunity to save costs while delivering a stellar experience to customers new and old.