Startups

‘Systemic issue’: The customer acquisition challenges DTC brands face go beyond cost

It's become one of the most talked-about subjects in the DTC world: one of the biggest challenges brands face today is the rising cost of customer acquisition, particularly on digital channels like Facebook and Google. But, the customer acquisition challenges DTC brands face goes beyond cost, and as such, it will take more than just an advertising channel offering low CPMs to win them over.

Latest Stories

  • AUG 15, 2019

    An online wine company is using customer data to develop products and gain traction with retailers

    After gathering customer insight from subscribers around the types of wines they prefer over Vinebox’s past three-and-a-half years, and seeing users buying more cases of the individual pours outside of the three-month delivery cycle, Vinebox founder Matt Dukes launched Usual Wines, a private-label brand of wines made in-house. Usual wines, which launched eight months ago, are sold in packs of six and can be bought online and at Usual’s first branded store and wine bar in San Francisco.

  • AUG 12, 2019

    Why Winc is turning to equity crowdfunding to raise capital

    Wine company Winc just launched its equity crowdfunding campaign on the Seedinvest platform, in the hopes that it can raise a Series D fund with the help of its fanbase. Winc has raised nearly $50 million from traditional investors. Now, it's turning to everyday people with some extra cash to spare asking them to invest in the growing company too. It's a rare move for the alcohol space, but follows in the footsteps of a few interesting brands.

  • AUG 09, 2019

    Beverage brands are leaning on CBD and cannabis to drive buzz

    This past week, Arizona Iced Tea announced plans to launch a partnership with a cannabis company. It follows a few other bigger brands dipping their toes in the cannabis space. While ingredients like THC and CBD are trending culturally, the companies trying to launch these products have an unclear regulatory road ahead.

  • AUG 09, 2019

    Faced with rising online costs, DTC brands are now spending more money on traditional marketing channels

    Brands transitioning their marketing strategies to account for broad awareness-raising channels – which yield little to no insight into attribution or customer data – have to navigate an awkward growing-up phase that requires a reallocation of resources, navigating partnerships, new methods for tracking results and back-end preparation to meet a new level of customer response.

  • AUG 07, 2019

    Gin Lane is trying its hand at launching its own brand

    On Wednesday, Gin Lane announced that it is shutting down its agency work, and rebranding to Pattern. Pattern will launch its own brands and operate them under one holding company, joining the long line of agencies that have tried to launch their own products.

  • AUG 06, 2019

    How insurance startup Hippo built a company worth $1 billion

    Home insurance startup Hippo just reached unicorn status. Since the very beginning, the company worked with the branding agency Work & Co to help craft and evolve its strategy and products. While many upstart DTC brands sing the praises of bringing all branding in-house, this provides a helpful example of an agency partnership that helped a company be worth more than $1 billion.

  • AUG 05, 2019

    Mattress brand Eight Sleep used a new product launch to reduce its dependence on Facebook

    When five-year-old startup Eight Sleep released a new product in February, a $1,995 smart mattress that offers dynamic temperature adjustment, the company used the launch to kick off a "pretty intense testing phase" of new marketing channels, according to senior vice president of growth Ori Klein.

  • AUG 05, 2019

    ‘It’s relatively easy to build a $1 million business’: Why DTC brands expand to services

    Many DTC brands are no longer happy selling just products. Instead, they're expanding into services and platforms. But is this strategy to scale achievable or just empty promises to investors?

  • AUG 01, 2019

    How Rockets of Awesome is looking to draw in both kids and parents with its first store

    Children's apparel brand Rockets of Awesome is opening its first pop-up store in New York City on August 8. As a company that caters to both children and parents, it's looking at its store as a way to figure out how they want to shop together.

  • JUL 26, 2019

    As DTC brands grow up, customer service becomes a bigger headache

    Most digitally-native retail brands start small, but as they grow they increasingly need to scale their customer service program. Recent headlines from growing companies like Rent the Runway illustrate the growing need DTCs have for centralized and proactive customer service programs.

  • JUL 24, 2019

    Outdoor Voices launches editorial platform The Recreationalist

    Outdoor Voices is dipping its toes further into the editorial game. The athleisure brand launched today a content marketing platform, The Recreationalist, which includes a blog and a zine. Outdoor Voices' overall mission, according to the brand, is to "get the world moving" and to "free fitness from performance." The Recreationalist will be speaking to that ethos as a hub of "guidance, inspiration and motivation."

  • JUL 23, 2019

    ThirdLove’s first physical store is about marketing as much as finding new customers

    Like other digitally native brands, ThirdLove is opening its retail store to get in front of customers they weren’t reaching online through marketing efforts, or because they didn’t want to shop a brand for the first time online. By opening a store now, ThirdLove is catching up to other direct-to-consumer brands that have already tested temporary retail stores and are opening permanent ones.

  • AUG 19, 2019
    Sponsored

    More referrals and fewer transactions: How enterprise partnerships are evolving in the age of affiliates and influencers

    Enterprise companies are seeking different kinds of strategic partnerships in the digital age. According to new research, marketers say factors such as influencers, social ambassadors and affiliates have made referrals more important than immediate transactions.

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