Is D2C Software Right for Your Business?
By Courtney O'Riordan • Last updated: Wednesday Jul 26th, 2023
As eCommerce retailers navigate continuous change and uncertainty, many will question how they can continue to thrive in this lucrative sector.
Those adopting a direct-to-consumer model may need to work harder to compete against the wider varieties and lower costs of B2C retailers.
For these retailers, adopting D2C software can help to overcome the challenges facing online stores in the current eCommerce landscape.
In this article, we will identify some of the issues D2C software can help online retailers solve such issues.
What is D2C?
A D2C (direct-to-customer) model allows retailers and manufacturers to sell directly to their end customers.
This strategy differs from the B2C (business-to-consumer) model, in which brands use intermediaries such as wholesalers, retailers or online marketplaces to sell products.
Both business models have a place within the eCommerce industry and can offer a variety of benefits to a retailer.
However, as 64% of shoppers choose to buy directly from a brand, it’s clear that the growth of D2C will continue to rival that of B2C. 1
Suggested reading: Discover the ins and outs of D2C in our article, ‘What is D2C and Why is it Key to Customer Engagement?’
What is D2C software?
In response to the increasing prevalence of D2C eCommerce, D2C software has emerged.
D2C software refers to the on-site tech that can support online businesses with their eCommerce goals, such as:
- Driving more conversions
- Improving customer engagement
- Increasing customer retention and loyalty
Traditionally as a D2C site, you may need to work harder to achieve the same sales as a B2C seller – due in part to the lower costs associated with the B2C model.
Companies, such as Salesfire, have surfaced to level the playing field by providing solutions that unlock the full selling potential of a D2C business, providing a competitive advantage over B2C sellers.
Is D2C software right for your site?
Optimising your site with suitable software requires a detailed understanding of your business’s goals and the areas of your website that need improvement to achieve them.
Let’s explore why D2C software may be right for your store.
1. Your conversion rates are low
The correlation between an unoptimised D2C site and low conversion rates is undeniable.
While it’s natural for a percentage of browsers to leave your site without making a purchase, there is always room to reduce your site’s lost sales.
Upgrading your on-site search bar is a particularly effective and often overlooked way of doing so.
After all, for every 2 seconds a page takes to load, conversions drop by 20%. 2
With this in mind, Salesfire’s Search could increase your conversions by:
- Delivering results in as little as 0.01 seconds.
- Preventing a search query with no results from displaying an empty page by redirecting to a category, product or landing page of your choice.
- Inspiring searches with suggested terms based on a customer’s current query to connect shoppers to their perfect product quickly.
This D2C software will help to solve your low conversion rate by inspiring purchases and preventing customers from dropping off your site.
2. You have high basket abandonment rates
Basket abandonment is a complex issue that affects all eCommerce business models.
Luckily, D2C puts the power directly in your hands to solve it.
Solutions that encompass the entire on-site customer journey, such as Digital Assistant, will provide you with the best chance at lowering this figure.
The causes of cart abandonment are endless, but our free-to-use Digital Assistant campaigns can help you to combat issues such as:
- Lack of payment options: Our ‘Klarna Available at Checkout’ campaign empowers customers to purchase by displaying your Klarna integration upon exit intent.
- Unexpected costs: Signal the availability and end of your free delivery offering with countdown timers. Our ‘Free Delivery Countdown’ campaign allows you to entice shoppers to buy now and avoid missing out.
- Low purchase intent: Encourage casual browsers to convert with our ‘Product Purchases’ campaign. Communicate the real-time popularity of your products to build FOMO and create conversions.
When it comes to lowering your high basket abandonment rates, D2C software can help to encourage customers to complete checkout by solving the issues that could cause them to exit your site.
3. You want to create a seamless customer experience
The world of online shopping is constantly evolving and with that expectations of a seamless customer experience are growing.
From mobile devices to brick-and-mortar stores, today’s shopper has multiple touchpoints with a brand.
Making each customer interaction positive is essential when it comes to increasing conversions.
At the centre of your online interactions is your tech stack, especially if you are focusing on creating an omnichannel experience.
Integrating D2C software that ensures your physical and online presence marry up is vital.
A powerful tool that accomplishes this is Visually Similar Search.
Connect in-person, social and on-site retail by allowing shoppers to upload images of their shopping inspiration that they have discovered elsewhere.
By making it easy for customers to continue and even complete their shopping journey on your site, you create a seamless customer experience that converts.
4. You want to make use of customer reviews
Reviews are invaluable to a D2C business for a number of reasons.
Rich Ball, Brand Marketing Manager at REVIEWS.io, described the impact they can have:
“Harnessing customer feedback through reviews is a powerful tool that supports DTC eCommerce growth. By providing customers with a platform to collect reviews, businesses can gain valuable insights into their customers’ experiences and preferences. These insights can be used to improve products, services, and customer satisfaction, ultimately driving growth.
“Utilising customer feedback through reviews is just one of the many tools that businesses can use to drive DTC eCommerce growth. By leveraging technology and tools to engage with customers, businesses can build lasting relationships, improve their offerings, and thrive in today’s ever-changing digital landscape. Start your review collection journey with reviews, the friendly review platform.”
Pro tip: Display your REVIEWS.io reviews to on-site customers to build the credibility of your website and encourage purchases with Digital Assistant.
5. You are not achieving ROI on your marketing strategies
If your marketing strategies aren’t providing the profitability you hoped, direct your attention to your site.
Since browsers are already on-site, aim to maximise their monetary value to you.
The introduction of AI-powered Recommendations to your homepage and product pages provides the opportunity for you to showcase a variety of products to an audience already inclined to shop with you.
This form of D2C software can make up for your lack of ROI on your marketing efforts by:
- Creating cross-sell opportunities: Use the ‘Similar’ recommendations strategy on product pages to return similar products to what the shopper is viewing.
- Grow your average order value: Encourage users to build bigger baskets using the ‘Bought Together’ strategy. Cross-sell products that are often purchased with the item the shopper is viewing.
- Promote your latest products: Create a buzz around your latest ranges or products using the ‘New In’ slot strategy at key points in the customer journey.
If your off-site marketing efforts don’t seem to be paying off, the advancements of D2C software mean it’s possible to sell more to your existing website traffic with on-site optimisations.
Pro tip: Reassess your product pages and ask yourself if your images could be of higher quality or if your descriptions accurately reflect your items.
If your answer isn’t a firm yes, be sure to overhaul these pages with fresh content to increase your chances of converting.
6. You want to improve your customer support
The battle against poor customer satisfaction can be won with excellent customer support.
There is a possibility that your customer has a query that could make or break their loyalty to your website.
To ensure both you and your shopper remain happy, you should make your FAQs and customer support email easily accessible.
Display this information in an Overlay to showcase the importance you place on support.
We recommend deploying such an Overlay using the ‘Bespoke Messaging’ campaign within Digital Assistant.
This will allow your customer to access your support information after the Overlay has left the screen.
By improving your customer support you improve the reputation of your D2C store.
Considerations: Provide immediate answers to any questions with a Live Chat integration.
Deploy D2C software on your site
No matter the industry, all D2C eCommerce stores have the common goal of selling more.
Achieving this goal can look different; from improving customer satisfaction to increasing AOV.
With D2C software, businesses can choose a solution that best suits their needs to achieve their goals.
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