Curious About a DTC Strategy in 2024?

DTC sales are expected to keep growing because more brands are moving online, and the ones already there are getting bigger. 

While a lot of what happened with DTC in 2023 will keep happening in 2024, there are some new things to keep an eye on. Knowing about these trends can help your business as you start or keep up your DTC strategy this year and beyond.

In this article, we'll talk more about what DTC retail is and the trends you should incorporate in 2024.

What Does Direct-to-consumer (DTC) Sales Mean?

Direct-to-consumer (DTC) sales refer to a business model where products are sold directly to customers without involving any middlemen like retailers or wholesalers. 

In simpler terms, it means that companies sell their products directly to people like you and me, often through their website, physical stores, or sometimes through catalogs or direct mail.

Instead of going to a store to buy something, you can buy it straight from the company that makes it. This can sometimes mean lower prices for customers because there are fewer steps in the process, cutting out the costs associated with middlemen. 

It also allows companies to have more control over how their products are presented and marketed to consumers. 

How Can Companies Excel in DTC Sales in 2024?

Rising Prices Prompt Customers to Spend Less

Inflation is a real problem affecting everyone significantly. People are starting to be more cautious with their money. It means they're spending less and thinking more about where they spend it. In the US, even well-to-do people are cutting back on shopping to save money.

For direct-to-consumer (DTC) brands, here's what you can do:

1. Continuously communicate your brand's unique selling points to your audience. Explain why you're different and why they should pick you over others.

1. Spend your advertising budget on channels that offer the highest return on investment. Use data to find out which platforms are giving you the best results.

1. Make sure you have a hassle-free purchasing process for customers. Give customers a great experience so they'll want to return and tell others about you.

Growing Popularity of BNPL and Flexible Payment Methods

A lot of people leave their shopping carts without buying anything when they shop online. It's a big problem for online stores, with about 70% of people leaving items behind without buying them.

How do you fix this? 

Easy. Buy Now Pay Later plans. (BNPL)

More and more people are starting to use buy now, pay later (BNPL) and other flexible payment options when they shop online. 

Besides using Apple Pay or Google Pay, online shops should offer BNPL plans. These payment plans are especially helpful for expensive items because you only need to pay a small portion of the cost upfront. Sometimes, you don't have to pay anything right away. Plus, the interest rates are low or even zero, which is better than what banks or credit cards offer.

Companies like Afterpay, Affirm, and Klarna are behind these payment plans. Online stores are teaming up with these fintech companies to bring in more customers. What's interesting is that these fintech companies also promote the brands that offer BNPL on their apps.

The Shift Towards Zero-Party and First-Party Data

More and more, brands are realizing the importance of collecting data directly from customers.

Since the iOS update, people have been thinking twice about the data they share with advertisers. First, Apple made changes, and then Google followed suit by ditching third-party cookies in Chrome. And it looks like by the end of 2024, those cookies will be history. 

But let's face it: as brands, you need that information to provide our customers with those personalized experiences and recommendations they adore.

I mean, over half of customers (56% to be exact) expect that kind of personal touch when they're shopping online. So, if you're selling straight to them (DTC) and can't rely on third-party data anymore, you've got to find another way to get the data.

This data is often referred to as first-party data, or sometimes zero-party data. It's information customers willingly share with us. Some brands straightforwardly ask customers for this information, while others get a bit more creative.

For example, if you're a clothing brand, you could ask customers to share their style preferences and sizes when they sign up. With this information, you can offer personalized clothing suggestions that match their taste and fit, making their shopping experience more customized and enjoyable.

What’s Your Return Policy Like?

Brands' return policies becoming increasingly significant. Why? 

Think about it. Would you buy or invest in something you might not like and not have the option to return it? Plus, with shopping online it's even harder to know if something will really work for you until you've got it in your hands.

So, having a solid returns policy is a big deal. It gives customers peace of mind, knowing that if something isn't quite right, they can send it back without any hassle. And for brands, being known for making returns easy and painless can be a real selling point. It's like saying, "Hey, we've got your back. If it's not perfect, no worries—we'll sort it out."

That's why brands that make returns simple and customer-friendly are more likely to win over shoppers. They get that it's not just about making the sale—it's about making sure customers are happy even after they've made their purchase.

It's what sets one brand apart from another for customers. So, brands need to rethink how they deal with returns. That means making it easier for customers to send things back, offering refunds quickly, and having convenient return locations.

PRO TIP: Try to offer free return shipping whenever you can!

Social Media Shopping Continues to Grow

Before, brands would tell their social media followers to buy products by clicking on a link in the bio or the caption. But now, social media sites are making it even easier. You can actually shop right from a social media post!

This has become super popular with younger folks like Gen Z and millennials. It's called social shopping or social commerce. Instead of going through the whole process at a regular online store, you can buy items straight from a social media post.

Instagram has Shoppable Posts, TikTok has TikTok Shopping, and Facebook has made its Facebook Shop easier to use. Other sites are also working on adding shopping features.

Here's what we think: This trend is only going to get bigger because social media platforms want to keep you on their sites for as long as possible. Plus, they make money from your purchases, so they're always improving their shopping tools.

ALSO READ: Boosted by Almost 100%! Our Conversion Rate Success Story with Meta Shop

Final Words

Looking ahead, success in DTC retail means being flexible, thinking outside the box, and always putting customers at the center. We've seen how DTC sales are set to keep rising, driven by more those shopping online and big DTC brands getting even bigger. 

However, to succeed in this space, brands need to be on top of the latest trends and put customers first.

In essence, the journey towards DTC success in 2024 and beyond is not just about selling products—it's about building relationships, earning trust, and making sure every customer feels valued and heard.

SO, WHERE DO YOU FIND THIS PARTNER?

Well, aren’t we glad you asked! We at DigiCom are obsessive data-driven marketers pulling from multi-disciplinary strategies to unlock scale. We buy media across all platforms and placements and provide creative solutions alongside content creation, and conversion rate optimizations. We pride ourselves on your successes and will stop at nothing to help you grow.

Contact Us