Email addresses have become the currency of choice for direct-to-consumer brands. As a result, many DTC brands offer customers a discount off their first order, if they sign up for the company's email list
Chatbots were all the rage a few years ago, but consumers never took to them. Now, DTC brands are using a mixture of AI and human-based chat technology to better handling customer service.
New and existing sites are increasingly seeing an opportunity in helping both shoppers and industry members make sense of the growing DTC landscape. The founders of these sites say that because it's easier now than ever before to start a new brand, and many of these brands gain traction through a mix of paid Facebook and Instagram ads, influencer partnerships, and affiliate deals, it's hard for even someone who works in the consumer industry to understand which new mattress or razor is best.
Food52 just sold a majority stake to The Chernin Group. According to the company, what propelled the deal was the commerce strategy it put in place. Now, with the cash infusion, the home and kitchen site plans to invest even more into both online and physical retail.
As digitally-native brands are spending more on brand marketing, they find they may have to manage tension between different members of their marketing team, as what's best for the brand may not always be deemed best by performance marketing standards.
As the resale market grows, it's ushered in a wave of startups that see a lucrative opportunity in helping retailers navigate the secondhand apparel space. Some marketplaces that started out as peer-to-peer are striking more partnerships with brands and retailers to increase revenue, while at the same time trying to direct traffic back to their own site. Another startup called Yerdle, which last week announced it had raised a $20 million round of venture capital financing, has created a white label service that retailers like REI, Eileen Fisher and Patagonia have used to build resale services that pull from their own inventory.
Many DTC brands relying on performance marketing use Facebook for customer acquisition. But the DTC company Candid has found that despite it's robust offerings, the platform simply doesn't align with its longterm strategy.
Rakesh Tondon, CEO of clothing and accessories rental provider Le Tote, said that his company's decision to acquire Lord & Taylor for $100 million was driven primarily by technology. Speaking at the Evolving E e-commerce conference in New York City on Tuesday, Tondon said that Le Tote was initially in talks with Lord & Taylor to open up Le Tote boutiques in some of its stores, as well as license its technology stack to Lord & Taylor, when reports broke that parent company HBC was looking to sell Lord & Taylor.
Multi-touch attribution has become the attribution method of choice for brands, especially direct-to-consumer ones, once they start advertising on more channels than just Facebook and Google. But switching to a multi-touch attribution model isn't as simple of a switch as transitioning from one software vendor to another. It is often a months-long project, that requires close communication between a brand's marketing and data science teams.
As Facebook and Google ads, the bread-and-butter of many direct-to-consumer brands' customer acquisition efforts, become more expensive, there's also been a rise in companies eager to give money to cash-strapped DTC companies -- for a fee. One of the most prominent of these companies is Clearbanc.
There's a growing group of business evangelists online who love to wax philosophic about DTC brands. But it's not only a pocket of Twitter, but a thriving social network of entrepreneurs, VCs and consultants. But does it run the risk of becoming too much of a clique?
As DTC brands grow, they face the issue of copycats encroaching on their space. This is increasingly becoming an issue founders are being forced to reckon with. The latest example is Ro, which noticed that competitor Hims had a UX almost identical to its own.
As direct-to-consumer brands expand into new categories, they're starting to hire more marketers with a special focus on retention, whose goal is to win over more business from repeat customers. Brands that currently have openings for retention marketers at various levels include Brooklinen, Care/Of, Peloton and Prose.
Attribution has been a sore spot for brands, especially those that are diversifying their marketing mixes, for years. There are many different methods to figuring out attribution. One that's increasingly popular is "fractional attribution." And for so-called DTC brands, who are now diversifying their ad spend beyond Facebook and Google, they're more likely to allocate their marketing dollars based on a fractional attribution model instead of last-click or click-based attribution model.
Returns are one of the most ubiquitous part of the online shopping process. They are also extremely expensive -- as well as difficult to accurately quantify. For DTCs, returns are one of the large-yet-invisible problems continually hampering the bottom line.
At the Modern Retail Summit, retail marketers will discuss everything from the Amazon effect to new infrastructure to the shift in the direct-to-consumer world.Book Passes