The direct-to-consumer (DTC) channel is becoming an important source of revenue growth in consumer goods companies.

Eager to cut out the middle man, more consumers are getting used to buying directly from manufacturers. At the same time, more companies are realizing the benefits of having a DTC presence, including the ability to build a closer relationship with customers, more opportunities to collect transactional data and improved profit margins.

90%

of consumers would rather buy directly from a brand if they could

 

Source: Nielsen

40%

of manufacturers are already selling directly to consumer

 

 

Source: Economist Intelligence Unit

250%

of Nike’s DTC business will grow by 2020. Other brands like Under Armour and Vans will generate over 25% of their revenue from direct sales.

The DTC model unlocks new opportunities—and unleashes new challenges

For many manufacturers, selling straight to consumers is new territory—one that brings a set of unfamiliar challenges, including:

Alleviating potential conflict with traditional channel distributors

Building brand awareness and driving conversions

Creating innovative and differentiated products and services

Delivering an omnichannel experience

To manage these issues, companies need to build a relationship with their customers. They need customer-validated insight to improve their products and marketing campaigns.  

Product and offer differentiation becomes a crucial strategic decision [when establishing a direct-to-consumer presence], as is careful attention to pricing strategies for the various channels used. Understanding how customer segments shop across product categories can help match the appropriate channel and offering with the most receptive segment.

Deloitte

Leveraging customer relationships to drive DTC initiatives

Vision Critical helps leading companies build better customer relationships and get the insight they need to meet the challenges of the DTC model.

Our platform enables companies to grow the customer lifetime value by helping them bring together customers who provide ongoing feedback on improving the customer journey, enhancing marketing campaigns and launching breakthrough products.

By empowering companies to engage thousands of consumers, the Vision Critical platform democratizes how companies use the customer point of view in the decision-making process.

How customer relationship intelligence drives DTC initiatives

Uncover proprietary data on consumer attitudes, preferences and opinions

Understand which customer segments prefer to buy directly from retailers – and why

Identify pain points in the customer journey to provide a more seamless experience

Test and iterate with the same consumers throughout the innovation cycle

Optimize pricing, promotion and go-to-market strategy

Grow customer lifetime value by delivering higher quality insight over time

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Learn why 600 of the world’s top brands rely on Vision Critical to help them build better customer relationships.

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