We live in a mobile-first age where everything is just a click away. Trends and consumer interests change by the minute. This volatility in the market is basically the outcome of an ever-growing e-commerce industry that has put thousands of businesses racing neck to neck to win over their customers.
The rise of e-commerce and web-based retail has generated momentum toward a direct-to-consumer (D2C) model of sales. A model that prioritizes speed, convenience, and real-time service. The D2C approach gives all kinds of businesses an equal opportunity to win over their customers through creative and direct advertising.
For businesses, it means approaching their customers directly without any middlemen involved.
But before we head to the technical aspects of it let’s first understand the basics of the D2C business model.
What is a D2C business model?
In a D2C model or Direct-to-Customer model, a business establishes an online marketplace and sells its products to end customers directly. Businesses use their website, social media accounts, or even online marketplaces like Facebook marketplace or WhatsApp Business.
How it works:
Comparing with a traditional business model, here is how the D2C business model works.
In the case of the traditional business model, the business making the product needs to sell it to retail stores which further sell it to end customers. In this model, there is no direct link between a business and its customers.
In the case of large businesses, the product cycle between customers and businesses gets even more elongated with super distributors, distributors, and resellers joining the hierarchy.
D2C model excludes the role of physical stores, distributors, or any other middlemen in the system. This helps in reducing the overall cost, speeding up the process, and offering in-time customer care services to your end customers.
According to a recent survey, more than 55% of consumers prefer buying products directly from brands as compared to anywhere else. This has pushed a lot of traditional business as well as emerging new startups to adopt the D2C marketing model.
Some examples of D2C businesses are Mamaearth, WOW, Fit & Glow, Lenskart, Licious, Zivame, Epigamia, BoAt, MyGlamm, SUGAR Cosmetics, IncNut, and Country Delight, just to name a few.
How can D2C help a business?
The D2C model brings businesses and customers face to face. Here are some of the ways in which it impacts the business:
1. Improved Sales
In a traditional model, your products will have to share shelf space with other brand’s products. This will get your products divided attention and will get you lower sales. But in the case of direct selling, you get your customers’ complete attention. You can answer their queries about the product and convince them to easily buy it.
The fact that customers can take time to do thorough research about the product before they buy it online adds to the merits of D2C businesses.
2. Understanding consumers better
The D2C model encourages one-to-one conversations between customers and businesses. This helps in understanding customer needs and expectations better. Establishing a direct relationship with consumers enables the companies to clearly understand what the customers expect from them. This, in turn, helps personalize their experience so that they can feel satisfied and visit their online store again.
3. Reduction in Cost
The D2C model saves costs for the business on two levels. First, the model doesn’t require a business to own an office, a huge resource team, or any expensive infrastructure. You can run your business with a small team from just about anywhere. Now imagine the cost that would save!
Secondly, the business connects with customers directly and the entire cycle business to end customer cycle does not include any middlemen. This leaves more cash on the table as the business no longer has to pay third-party distributors.
4. Diverse Catalog of Products
Now that the companies do not require a physical area for selling their products. They can sell from a diverse catalog of products, enabling them to offer extensive variety to attract customers.
So those were the benefits that businesses have when they use the D2C model. But if you are a business selling on WhatsApp Business API based SocialEpoch, your range of benefits just doubles up.
Advantages of Using SocialEpoch as a D2C Platform
Here are the advantages that businesses have when they bring their D2C business on SocialEpoch:
SocialEpoch runs on a WhatsApp-based interface and allows businesses to reach out to their customers through WhatsApp itself. Since WhatsApp has more than 2 billion users and most people are familiar with it, it makes it convenient for both the business and its customers to engage with each other. With WhatsApp Business, you can find customers, share products through the catalog, sell products, receive payments and provide customer care services, all through one single platform.
Selling on SocialEpoch gives you the advantage that you can share product details using the catalog feature and close deals on the spot. Since it does not involve any hierarchy, it adds speed to your processes and you can commit shorter delivery time for your customers.
3. Real-time service
SocialEpoch being a CRM tool provides you with all necessary features such as quick reply, automated response, bulk message sender, etc. which helps in addressing thousands of customer requests and queries efficiently, and provide them real-time response through chats as well as calls.
4. Personal relationship
WhatsApp is used by many as a space for personal conversations. You as a business can make the most of this advantage by engaging with your customers on a one-to-one basis. This will help you establish a personal relationship based on trust and long-term commitment.
WhatsApp-based marketing campaigns have a proven record of being a huge success. SocialEpoch, when used as a marketing tool, can help you build a huge market presence and reach out to a wide audience base in a short time. The fact that WhatsApp Business is a free tool saves you a lot in terms of your marketing cost.
The digital era has accelerated the trend of e-commerce and social commerce. The internet has brought businesses to the doorstep of its customers and given rise to the D2C approach. The D2C approach used by businesses has a lot of advantages. And with the number of digitally enabled customers growing each day, it can be seen as the future of e-commerce retail.
To download SocialEpoch, click here or drop a mail at email@example.com to get assistance.