Opening D2C channels can be beneficial to B2B companies. To do so, they will need meticulous planning, good data, a thorough understanding of consumer demands, and a commitment to create engaging experiences.
If there’s one thing the retail industry has learned over the last 12 months, it’s that eCommerce strategies and platforms are continuously evolving to match customer expectations.
Before the pandemic, consumer reach and revenue models were considerably different. One of the most significant changes in the industry over the last two years has been the shift in the B2B model, with many companies jumping on the Direct-To-Consumer (D2C) bandwagon. It was quickly embraced by companies that were not purely D2C, altering their previous business models virtually overnight. This shift not only helped them stay afloat, but also helped them prosper during these difficult times.
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D2C purchases increased by 200 percent from 2019 to 2020, according to the Salesforce 2021 State of Commerce report, demonstrating a clear shift in how customers shop online. Furthermore, many decision-makers prefer to gather information and make B2B transactions online rather than interacting with a sales representative early in the process, if at all.
Why do B2B companies need to move to Direct-To-Consumer?
To make profit, expanding business operations, staying on top of the competitive market, and increasing sales opportunities, catering to more consumers and maintaining a nurturing relationship with them is a necessary. And, in the buyer’s market, a D2C selling approach can help companies reach this goal and work towards being one of the top brands.
Here are the five significant reasons why eCommerce companies should switch from B2B to D2C.
Boost revenue
D2C merchants can offer fair-priced products since they save on packaging, retailer commissions and shipping by dealing directly with buyers. Customers flock to the eCommerce business because of the low prices, and the number of repeat customers rises as well. Brands can boost their revenue and profit margins by increasing the number of users that visit eCommerce websites and make a purchase.
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Boost customer loyalty
Dealing directly with customers provides businesses with vital information about how customers interact with their products across numerous channels. D2C brands can boost their conversion rate and customer retention rate by giving tailored products to their customers when they have high-volume and structured data at their disposal. Direct engagement with customers allows companies to better understand their needs and give exactly what they want in a product.
Boost brand visibility
Customers can visit and buy preferred and brand specific products from D2C business owners who have an app, a dedicated website, and in some cases even a real store. A D2C business model gives business owners entire control over the supply chain, allowing them to launch marketing campaigns and target potential leads who will eventually convert to lifelong customers, strengthening their brand affinity.
A shopping experience that is customer-centric
B2B companies typically sell pre-designed items to other companies. To build a standardized commodity for its customers, they follow a set procedure. Manufacturers can establish omnichannel shopping channels, improve customer touchpoints – online and physical presence, evaluate purchasing trends, watch consumer activity, collect direct feedback, and offer personalized products to end customers using a D2C business model.
Expand business operations
With D2C eCommerce, business owners can use the latest technology to obtain customer insights and adapt marketing plans, making it easier to expand operations. Using D2C selling strategies, they can invest in product innovation, improve user experience, and work toward shorter turnaround times.
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