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Must-haves for a D2C brand to succeed in local e-commerce

By Abhishek Goel 26th April 2022

Direct-to-consumer (D2C) e-commerce is now the ideal way for innovative brands to establish direct interactions with their customers. D2C refers to selling a product directly to the consumer using a company’s online store, without using third-party merchants or distributors. Local commerce is now prevailing.

This allows businesses to communicate directly with end consumers and get real-time feedback to guide their brand strategy and innovation.

Here are a few must-haves for any D2C local commerce brand that they need to implement in their company structures. 

Adhere to D2C

It all starts with a vision and so in order to be successful in D2C local commerce, senior management must be completely dedicated to its prioritizing. First, define D2C’s strategic aims. As part of establishing and executing a strategic role and objective, it would be crucial to clarify the target client categories for D2C and other channels. Further, it would be important to establish specific parameters for the value offer.

The responsibilities of the Board, the CEO, and the executive team of any company should be to structure and constantly support the Direct-to-consumer strategy, its vision, and ambition. 

Furthermore, it is important for them to translate these KPIs among the different functions of the organization. 

The job of the CEO, the Board, and the whole executive team should then be to shape the details and support the organization’s D2C e-commerce strategy and ambition and translate these into practical KPIs across different functions of the organization. To succeed in e-commerce, business teams must collaborate across channels and functional lines at an unprecedented scale, make bold decisions and accomplish breakthroughs to satisfy the exceptionally high standards customers expect from today’s online business. 

Stay ahead of the curve 

To function at scale, a successful local e-commerce company must have the necessary resources and technology in place. Hiring the necessary personnel and establishing a new technological infrastructure necessitate significant changes for any company, and doing so while concurrently managing a “breakthrough” e-commerce firm inevitably increases complexity and risk. It is critical to plan ahead of time and establishes the necessary resources, including people and technology, to a higher extent than usual; strategic choices should favor local e-commerce.

Recruiting and retaining digital talent

A scarcity of actual e-commerce skills is a major impediment to D2C growth. Finding and recruiting suitable talent may be tough, and it necessitates cultural, structural, and monetary reforms. Because talent is limited and competition is severe, acquiring the appropriate people may necessitate a fundamental rethinking of traditional tactics. We provide three realistic ways for increasing an organization’s e-commerce skill pool.

Create a bold customer experience vision and seek to achieve it on a regular basis

All of the most successful local e-commerce companies have implemented scalable CX solutions, spanning from mobile and online experience design to flexible pick-up and delivery choices and driving personalization through predictive models. The predictive models are important because they allow businesses to identify their customers’ needs and likely behaviors at scale, as well as what they expect from the platform and service levels, and what would change their minds and prevent them from making a purchase or, better yet, registering themselves as a (loyal) customer.

Consider going beyond the transaction

All the D2C local commerce brands should aim to deliver beyond just any transaction. The final mechanism to promote D2C e-commerce growth is related to the customer experience, and it is based on the fact that, in order to be economically viable, an e-commerce channel must rely on a set of core customers, because keeping a customer costs up to five times less than acquiring a new one. Furthermore, boosting client retention rates by only 5% can assist raise earnings by 25–95%. 

Final words

E-commerce has demonstrated that it will continue to develop, and direct-to-consumer (D2C) is a crucial area in which businesses can adjust their relationship with e-commerce to maximize its benefits, ensuring that they remain competitive in an increasingly connected and online world.

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