Adopting an agile direct-to-consumer (DTC) strategy is no longer a choice but a necessity. More and more companies are taking charge of their entire product journey, from ideation and manufacturing to delivery. DTC strategies are becoming increasingly nuanced, with social and digital channels furthering the visibility of DTC brands. 

DTC branded sites, such as Nike and Apple, were ranked the third most popular online purchase channel in 2023, trailing only behind marketplaces and supermarkets (e.g., Amazon, Walmart, Target), per Statista. As consumers become more informed and demanding, brands bypass traditional retail channels to meet their needs directly. They are creating more engaging connections, experiences and relationships with their consumers to drive loyalty and revenue.

Even the smallest friction in a buyer’s journey can hurt conversion or drive customers to competitors. The key to removing these barriers — and staying competitive — is using data to understand and optimize their paths. Here, we’ll explore actionable strategies to help marketers stay agile and thrive in the fast-changing DTC market.

Where to begin

Digital commerce offers a treasure trove of retail marketing data waiting to be harnessed and activated correctly. Use this data to engage consumers directly, understand their buying habits and remove hurdles in the purchase process — boosting satisfaction, loyalty and lifetime value.

Retailer audiences offer valuable data for acquiring new customers. However, you must first trust your own consumer data — knowing how, where and by whom it’s collected, stored and used. Here are three ways to maximize the data you already have.

1. Understand your data collection process

Start with examining your current ecosystem. Map out all touchpoints with your consumers, including the happy path and the full DTC checkout funnel. Customer journeys are multi-faceted and rarely linear, so your brand must understand the nuances of each channel and interaction where insights can be unlocked. 

Once you thoroughly understand how customers interact with your brand, ensure your data governance is set up for success. It should have mechanisms to ensure privacy and compliance, especially for personally identifiable information (PII) from your consumers. Establishing strong data governance early sets the stage for future automation and efficiency in data collection and decision-making — enabling faster, more confident choices.

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2. Automate data collection so you can grow with your customers

Once you’ve established your data collection foundations, you can automate and optimize every step of the process over time. As you automate manual processes, like using AI to synthesize insights or visualize data quickly, you can easily adjust your data collection to align with your customers’ changing habits. Instead of trying to predict every new channel or marketing tactic to reach consumers, focus on building the right infrastructure for automation and scalability.

For instance, recent legislative actions targeting TikTok could significantly disrupt consumer interactions with your brand. But with a strong data governance foundation and automated processes for collecting and using data across channels, you can swiftly adapt to such market changes and seize emerging opportunities.

3. Tap into models to unlock ever-increasing customer insights 

With a solid data collection strategy, you can build models and transformations to address important gaps in your marketing strategy. Model building is essential for gaining valuable insights from your data. By using advanced machine learning and AI, you can get closer to a 360-degree view of your consumers’ behaviors, preferences, habits and contexts, helping you gain a competitive advantage.

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What’s next? 

Once you have a solid data collection foundation, scalable processes and effective models, it’s time to put the data to work. These elements help you connect with customers where they are and create new opportunities for them to engage with your brand. The quality of your models and insights depends on the data you provide, so investing time in establishing a strong foundation will benefit your brand in the long run, positioning you as a leader in consumer engagement.

Innovation in DTC marketing and brand engagement is accelerating, with new platforms and channels continually emerging. Your brand’s success will depend on your ability to quickly create processes that provide value to both you and your customers. Aim to lead the way in setting new standards of customer-centricity.

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