Marginal gains #2: Processing payments
Selling direct-to-customer is nothing new, and yet it’s a whole different ball game these days. A fresh crop of retailers have removed the middleman and are creating dedicated customer relationships with technology and personalized experiences.
D2C brands are those that design, manufacture, and sell goods to the customer. Technology has been the main driver of this shift, allowing retailers to connect with and sell their wares directly to consumers without depending on larger, more established avenues.
We partnered with 451 Research to learn more about the benefits of going direct-to-customer, and why global brands like Casper, Apple, Ace & Tate, and Adidas have revitalized the D2C concept to inspire loyalty and drive revenue from brand advocates.
You can offer a much lower price
Ace & Tate, an Amsterdam-based eyewear company, lets readers know why designer glasses are so darn pricey: “You’re simply paying too many people.” By selling directly, Ace & Tate can pass along their savings to customers, and in turn offer a much lower price than a traditional optician. This, along with great customer experience, is making their brand grow exponentially in Europe and beyond. In the U.S., Warby Parker offers a similar model and cost savings.
You can enhance your customer experience
When you have end-to-end control of your products’ production and sales, you can elevate the customer experience at every step of the journey. Apple, the electronics behemoth, is a case-in-point, mastering the selling of its products through both its beautiful website and highly skilled in-store staff.
D2C allows you to be as creative and personable as you like
Once a user lands on your website, you have a captive audience for marketing — giving you creative carte blanche while establishing a direct relationship with your customer. Dutch homeware brand Brabantia uses their blog to make their brand aspirational, with tips, ideas, and even reading recommendations.
Going direct-to-customer gives you maximum agility
With your loyal customer base a mere email, in-app notification, or social media post away, you can get products to market quickly and generate demand without using costly ad campaigns. When Adidas released the limited edition Blackburn SPEZIAL trainers, fans lined up for three days to buy them. All 160 pairs sold out in minutes and were later receiving bids of up to $70,000 on eBay.
In our next article we'll take a closer look at how payments technology helps accomplish these strategies for D2C success.
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