Not sure of the right marketing platform?
Consult our e-commerce experts now. We would love to explore ways to increase your sales.
5 Steps to Unlock Omni-channel Personalization
September 8, 2023
.
OMNI-CHANNEL ENGAGEMENT
5 Steps to Unlock Omni-channel Personalization
- September 8, 2023
- OMNI-CHANNEL ENGAGEMENT
Here’s an interesting tidbit: The annual spending attributed solely to millennials amounts to a staggering $2.5 trillion, emphasizing their substantial economic clout.
With this remarkable financial influence, millennials wield considerable power in shaping retail and user experience trends. Over the past few years, they have emerged as the primary target audience for brands worldwide. Growing up in the age of computers and smartphones, millennials are recognized as a highly connected and tech-savvy consumer segment.
Unlike previous generations, their shopping habits don’t conform to a strict online or offline divide. Instead, they employ hybrid approaches, often researching products online before making in-store purchases or vice versa. Their preference leans heavily towards a seamless and convenient omnichannel experience. This shift has prompted brands to establish a ubiquitous presence, with many increasing their investments in omnichannel strategies to tailor the shopping experience for their target audience.
In addition to adopting an omnichannel approach, brands have also ventured into the realm of direct-to-consumer (D2C) sales. According to a report by Diffusion, an impressive 81% of US consumers have expressed intentions to make purchases from D2C brands by the year 2023.
This article will delve into the topic of how D2C brands are offering a comprehensive omnichannel experience to millennials. The following points will be explored:
- What drives millennials to favor D2C brands over traditional marketplaces
- Examples of D2C brands that have successfully embraced this approach
- How can brands offer millennials an omnichannel experience
What exactly is D2C, and what makes it resonate with millennials?
Direct-to-Consumer (D2C) is a strategy employed by brands to connect directly with consumers, bypassing intermediaries like wholesalers, retailers, or distributors. With D2C, these brands assume full control over various aspects, including marketing, distribution, and shipping.
In recent times, a notable shift has occurred, with over 55% of consumers opting to visit brand websites instead of purchasing through retailer platforms such as Amazon and Walmart. This trend has not gone unnoticed by retailers like Target, which have responded by introducing D2C brands into their stores to enhance their appeal, particularly among millennials.
The abrupt ascent of D2C in preference over retail and e-commerce can be attributed to the following factors:
- Tailored Experiences: Millennials have a strong affinity for brands that provide personalized omnichannel experiences. An impressive 80% of shoppers exclusively patronize brands offering personalization. D2C models, operating by selling directly to consumers, enable the collection of genuine, first-party data, facilitating the customization of the consumer’s journey.
- Enhanced UX and UI: In contrast to marketplace websites like Amazon, where brand products often conform to a standardized template, D2C websites grant brands complete creative autonomy to showcase their offerings, values, and narratives. This approach offers consumers a glimpse into the brand’s identity, fostering a direct shopping connection through the website.
- Increased Touchpoints: While marketplaces like Amazon have excelled in the omnichannel arena by establishing physical retail outlets in select locations, D2C brands boast a multitude of touchpoints. For instance, Amazon’s social media content primarily focuses on the Amazon brand itself, rather than individual products due to the vast product catalog. In contrast, D2C brands shine here. Given millennials’ active presence on social media, they prefer making direct purchases through these platforms. With end-to-end control over the entire process, D2C brands have the liberty to select and manage their preferred touchpoints, unlike retail and e-commerce brands, which often lack flexibility in this regard.
Brands that have excelled in their D2C omnichannel experience
1. Dollar Shave Club
When discussing D2C brands, the first name that comes to mind is Dollar Shave Club, based in the United States. This subscription-based razor company gained widespread recognition for its clever viral video. In the initial three months following the release of that advertisement, the company amassed 12,000 sign-ups. Despite facing off against industry giant Gillette, Dollar Shave Club’s unique content, tailored to its target audience, played a pivotal role in cultivating a devoted customer base. However, their success extends beyond content alone.
Dollar Shave Club harnesses data by gathering information from various touchpoints and seamlessly integrating it to craft a personalized omnichannel experience for consumers. Additionally, they meticulously pay heed to customer feedback and disseminate it throughout the organization to provide enhanced value. This profound commitment to customer-centricity has propelled them into the ranks of billion-dollar enterprises.
2. SimplyCook
SimplyCook, the UK’s subscription-based recipe kit service, stands out as a prominent D2C brand. It has successfully set itself apart from competitors by offering an appealing price point and diligently crafting diet-specific options. This strategic approach has enabled SimplyCook to cultivate a dedicated following. What sets them apart is their innovative method of creating new recipes, which involves collecting data directly from their customers.
3. Mama Earth
Mama Earth, an Indian D2C brand, initially focused on baby care products but later expanded into the personal care sector, emphasizing the absence of harmful chemicals in their products. Established in 2016, the brand achieved a significant milestone by becoming the first company in Asia to obtain the MadeSafe certification for their toxin-free offerings. Given the nature of their product line, establishing trust with consumers was paramount.
What set their strategy apart was their decision not to confine themselves solely to D2C sales channels. They also extended their reach to marketplaces like Amazon and Flipkart, as well as physical retail outlets such as Shoppers Stop and Central. As digital natives, they allocated 90% of their marketing budget to digital platforms and influencer marketing, dedicating the remaining 10% to traditional media. In spite of formidable competition from brands like Johnson & Johnson and FirstCry, Mama Earth achieved an impressive milestone by surpassing the Rs 100-crore revenue mark within just four years!
Steps to Forge a Holistic Omnichannel Journey for Your D2C Brand
Undoubtedly, D2C brands have begun to garner attention. Yet, if you aspire for your D2C brand to rival marketplaces or retail giants like Amazon and Walmart, you must establish a comprehensive omnichannel presence akin to theirs.
Here’s a guide to help you achieve that.
Step 1
Review your product lineup to incorporate popular items of a similar nature
In the past year, PepsiCo introduced two direct-to-consumer (D2C) websites: PantryShop.com and Snacks.com, providing consumers with the option to purchase their products directly, bypassing traditional suppliers. PantryShop.com featured popular brands like Quaker, Gatorade, and Tropicana, catering to consumers’ household needs, while Snacks.com offered over 100 Frito-Lay products. Both websites launched with introductory offers and bundled deals. Gibu Thomas, Senior Vice President and Head of eCommerce at PepsiCo, explained that the primary aim of these websites was to offer consumers quick and convenient access to their products, including carefully curated selections not typically found on other retailer websites. If you’re considering the D2C approach:
- Review your product offerings across all channels to identify your best-selling products.
- Curate these products and explore unique and exclusive ways to present them to your consumers.
- Prioritize understanding your consumers’ needs and tailor your offerings accordingly to meet those needs.
Step 2
Establish a presence on social media platforms and review websites frequented by millennials before they go shopping
Millennials rely on the internet to look up products prior to making purchases. They assess a brand’s trustworthiness and examine user reviews as part of their pre-purchase routine. A recent survey unveiled that a striking 8 out of 10 millennials refrain from making a purchase without first looking at the product reviews. Hence, it’s crucial to maintain a presence on review platforms.
When it comes to interacting with reviews, it’s essential to respond to both positive and negative feedback in accordance with your brand’s guidelines. Millennials tend to be more forgiving and inclined to give a brand one more chance if they observe it taking responsibility for any errors. This practice enhances the brand’s credibility. Therefore, it’s advisable to respond thoughtfully rather than reacting emotionally to negative feedback, and be willing to acknowledge mistakes when they occur.
Utilizing social media represents yet another valuable touchpoint, especially considering the active presence of 88% of millennials on these platforms. To directly engage with millennial consumers, maintaining an active social media presence is imperative. Construct a well-defined persona on social media to establish a unique brand identity.
Leverage tools like Facebook Marketplace to facilitate direct consumer sales in specific geographic regions. Explore features such as user-generated content, live videos, stories, and other interactive options to consistently connect with your audience. Additionally, consider investing in social listening tools to gain insights into trending topics and consumer discussions, providing a solid foundation for crafting timely and relevant content.
Step 3
Gain insights into customer behavior with the help of a customer engagement platform
To enhance the personalized omnichannel experience for your customers, it’s essential to gain a deep understanding of their behavior. To truly comprehend your customers’ behavior patterns, you should initiate the process by aggregating data from a variety of touchpoints, encompassing both offline and online channels. This is where a robust platform like Growlytics can be invaluable, as it allows you to consolidate and analyze customer data effectively. Once this data is within your customer engagement platform, you can attain a comprehensive 360-degree perspective on your customers’ shopping behavior, preferences, likes, and dislikes.
By segmenting your customers based on their behavioral patterns, you can construct tailored experiences for each group. Moreover, you can harness advanced analytical tools to reference their current and historical data, allowing you to anticipate and prepare for their future needs more effectively.
Step 4
Team up with influencers for enhanced engagement with the millennial audience
Millennials show a preference for purchasing products endorsed by their favorite influencers. Incorporating influencer marketing into your strategy can significantly enhance brand awareness and expand your reach to a broader target audience. A noteworthy example is the US-based mattress industry giant, Casper, which engaged Instagram and Twitter influencers, including Kylie Jenner, to generate excitement about their mattresses. A single post from Kylie Jenner resulted in a twofold increase in Casper’s net sales.
If collaborating with high-profile influencers comes at a steep cost, consider partnering with micro-influencers, as Glossier did. This digital-first cosmetics brand successfully leveraged micro-influencers on platforms like Instagram to spread the word. It’s worth noting that a substantial 70% of online sales can be attributed to peer-to-peer reviews facilitated by micro-influencers. Influencers bring authenticity and a personal touch to your brand, and their recommendations can lead to rapid sales growth.
When collaborating with influencers, it’s crucial to choose those who are established figures within your industry. However, it’s equally important to ensure their authenticity and alignment with your brand’s messaging to achieve the greatest impact.
Step 5
Replace standard advertising with product videos that convey emotional stories
In contrast to common assumptions, a significant 60% of millennials display brand loyalty when they genuinely appreciate a brand’s commitment to societal and environmental concerns. They are more likely to make repeat purchases when they perceive brands as socially conscious and compassionate.
Unlike traditional advertising, where brands primarily promote themselves, millennials seek authenticity and expect brands to align with the messages they convey. To leave a lasting impact on consumers, it is imperative to focus on narratives infused with compassion. Whether you opt for product videos or social media content, ensure that the emphasis is not on your brand but on the “why” behind your actions and how they contribute to the betterment of society.
Conclusion
In a world where millennials have significant economic sway, adapting to their preferences is key. They value authenticity, personalization, and social consciousness. To thrive, embrace omnichannel approaches, data insights, social media, and influencer collaborations. Don’t miss the chance to impress millennials by aligning with their values. Explore the power of the Growlytics platform for data-driven success—schedule a demo today!
Here’s an interesting tidbit: The annual spending attributed solely to millennials amounts to a staggering $2.5 trillion, emphasizing their substantial economic clout.
With this remarkable financial influence, millennials wield considerable power in shaping retail and user experience trends. Over the past few years, they have emerged as the primary target audience for brands worldwide. Growing up in the age of computers and smartphones, millennials are recognized as a highly connected and tech-savvy consumer segment.
Unlike previous generations, their shopping habits don’t conform to a strict online or offline divide. Instead, they employ hybrid approaches, often researching products online before making in-store purchases or vice versa. Their preference leans heavily towards a seamless and convenient omnichannel experience. This shift has prompted brands to establish a ubiquitous presence, with many increasing their investments in omnichannel strategies to tailor the shopping experience for their target audience.
In addition to adopting an omnichannel approach, brands have also ventured into the realm of direct-to-consumer (D2C) sales. According to a report by Diffusion, an impressive 81% of US consumers have expressed intentions to make purchases from D2C brands by the year 2023.
This article will delve into the topic of how D2C brands are offering a comprehensive omnichannel experience to millennials. The following points will be explored:
- What drives millennials to favor D2C brands over traditional marketplaces
- Examples of D2C brands that have successfully embraced this approach
- How can brands offer millennials an omnichannel experience
What exactly is D2C, and what makes it resonate with millennials?
Direct-to-Consumer (D2C) is a strategy employed by brands to connect directly with consumers, bypassing intermediaries like wholesalers, retailers, or distributors. With D2C, these brands assume full control over various aspects, including marketing, distribution, and shipping.
In recent times, a notable shift has occurred, with over 55% of consumers opting to visit brand websites instead of purchasing through retailer platforms such as Amazon and Walmart. This trend has not gone unnoticed by retailers like Target, which have responded by introducing D2C brands into their stores to enhance their appeal, particularly among millennials.
The abrupt ascent of D2C in preference over retail and e-commerce can be attributed to the following factors:
- Tailored Experiences: Millennials have a strong affinity for brands that provide personalized omnichannel experiences. An impressive 80% of shoppers exclusively patronize brands offering personalization. D2C models, operating by selling directly to consumers, enable the collection of genuine, first-party data, facilitating the customization of the consumer’s journey.
- Enhanced UX and UI: In contrast to marketplace websites like Amazon, where brand products often conform to a standardized template, D2C websites grant brands complete creative autonomy to showcase their offerings, values, and narratives. This approach offers consumers a glimpse into the brand’s identity, fostering a direct shopping connection through the website.
- Increased Touchpoints: While marketplaces like Amazon have excelled in the omnichannel arena by establishing physical retail outlets in select locations, D2C brands boast a multitude of touchpoints. For instance, Amazon’s social media content primarily focuses on the Amazon brand itself, rather than individual products due to the vast product catalog. In contrast, D2C brands shine here. Given millennials’ active presence on social media, they prefer making direct purchases through these platforms. With end-to-end control over the entire process, D2C brands have the liberty to select and manage their preferred touchpoints, unlike retail and e-commerce brands, which often lack flexibility in this regard.
Brands that have excelled in their D2C omnichannel experience
1. Dollar Shave Club
When discussing D2C brands, the first name that comes to mind is Dollar Shave Club, based in the United States. This subscription-based razor company gained widespread recognition for its clever viral video. In the initial three months following the release of that advertisement, the company amassed 12,000 sign-ups. Despite facing off against industry giant Gillette, Dollar Shave Club’s unique content, tailored to its target audience, played a pivotal role in cultivating a devoted customer base. However, their success extends beyond content alone.
Dollar Shave Club harnesses data by gathering information from various touchpoints and seamlessly integrating it to craft a personalized omnichannel experience for consumers. Additionally, they meticulously pay heed to customer feedback and disseminate it throughout the organization to provide enhanced value. This profound commitment to customer-centricity has propelled them into the ranks of billion-dollar enterprises.
2. SimplyCook
SimplyCook, the UK’s subscription-based recipe kit service, stands out as a prominent D2C brand. It has successfully set itself apart from competitors by offering an appealing price point and diligently crafting diet-specific options. This strategic approach has enabled SimplyCook to cultivate a dedicated following. What sets them apart is their innovative method of creating new recipes, which involves collecting data directly from their customers.
3. Mama Earth
Mama Earth, an Indian D2C brand, initially focused on baby care products but later expanded into the personal care sector, emphasizing the absence of harmful chemicals in their products. Established in 2016, the brand achieved a significant milestone by becoming the first company in Asia to obtain the MadeSafe certification for their toxin-free offerings. Given the nature of their product line, establishing trust with consumers was paramount.
What set their strategy apart was their decision not to confine themselves solely to D2C sales channels. They also extended their reach to marketplaces like Amazon and Flipkart, as well as physical retail outlets such as Shoppers Stop and Central. As digital natives, they allocated 90% of their marketing budget to digital platforms and influencer marketing, dedicating the remaining 10% to traditional media. In spite of formidable competition from brands like Johnson & Johnson and FirstCry, Mama Earth achieved an impressive milestone by surpassing the Rs 100-crore revenue mark within just four years!
Steps to Forge a Holistic Omnichannel Journey for Your D2C Brand
Undoubtedly, D2C brands have begun to garner attention. Yet, if you aspire for your D2C brand to rival marketplaces or retail giants like Amazon and Walmart, you must establish a comprehensive omnichannel presence akin to theirs.
Here’s a guide to help you achieve that.
Step 1
Review your product lineup to incorporate popular items of a similar nature
In the past year, PepsiCo introduced two direct-to-consumer (D2C) websites: PantryShop.com and Snacks.com, providing consumers with the option to purchase their products directly, bypassing traditional suppliers. PantryShop.com featured popular brands like Quaker, Gatorade, and Tropicana, catering to consumers’ household needs, while Snacks.com offered over 100 Frito-Lay products. Both websites launched with introductory offers and bundled deals. Gibu Thomas, Senior Vice President and Head of eCommerce at PepsiCo, explained that the primary aim of these websites was to offer consumers quick and convenient access to their products, including carefully curated selections not typically found on other retailer websites. If you’re considering the D2C approach:
- Review your product offerings across all channels to identify your best-selling products.
- Curate these products and explore unique and exclusive ways to present them to your consumers.
- Prioritize understanding your consumers’ needs and tailor your offerings accordingly to meet those needs.
Step 2
Establish a presence on social media platforms and review websites frequented by millennials before they go shopping
Millennials rely on the internet to look up products prior to making purchases. They assess a brand’s trustworthiness and examine user reviews as part of their pre-purchase routine. A recent survey unveiled that a striking 8 out of 10 millennials refrain from making a purchase without first looking at the product reviews. Hence, it’s crucial to maintain a presence on review platforms.
When it comes to interacting with reviews, it’s essential to respond to both positive and negative feedback in accordance with your brand’s guidelines. Millennials tend to be more forgiving and inclined to give a brand one more chance if they observe it taking responsibility for any errors. This practice enhances the brand’s credibility. Therefore, it’s advisable to respond thoughtfully rather than reacting emotionally to negative feedback, and be willing to acknowledge mistakes when they occur.
Utilizing social media represents yet another valuable touchpoint, especially considering the active presence of 88% of millennials on these platforms. To directly engage with millennial consumers, maintaining an active social media presence is imperative. Construct a well-defined persona on social media to establish a unique brand identity.
Leverage tools like Facebook Marketplace to facilitate direct consumer sales in specific geographic regions. Explore features such as user-generated content, live videos, stories, and other interactive options to consistently connect with your audience. Additionally, consider investing in social listening tools to gain insights into trending topics and consumer discussions, providing a solid foundation for crafting timely and relevant content.
Step 3
Gain insights into customer behavior with the help of a customer engagement platform
To enhance the personalized omnichannel experience for your customers, it’s essential to gain a deep understanding of their behavior. To truly comprehend your customers’ behavior patterns, you should initiate the process by aggregating data from a variety of touchpoints, encompassing both offline and online channels. This is where a robust platform like Growlytics can be invaluable, as it allows you to consolidate and analyze customer data effectively. Once this data is within your customer engagement platform, you can attain a comprehensive 360-degree perspective on your customers’ shopping behavior, preferences, likes, and dislikes.
By segmenting your customers based on their behavioral patterns, you can construct tailored experiences for each group. Moreover, you can harness advanced analytical tools to reference their current and historical data, allowing you to anticipate and prepare for their future needs more effectively.
Step 4
Team up with influencers for enhanced engagement with the millennial audience
Millennials show a preference for purchasing products endorsed by their favorite influencers. Incorporating influencer marketing into your strategy can significantly enhance brand awareness and expand your reach to a broader target audience. A noteworthy example is the US-based mattress industry giant, Casper, which engaged Instagram and Twitter influencers, including Kylie Jenner, to generate excitement about their mattresses. A single post from Kylie Jenner resulted in a twofold increase in Casper’s net sales.
If collaborating with high-profile influencers comes at a steep cost, consider partnering with micro-influencers, as Glossier did. This digital-first cosmetics brand successfully leveraged micro-influencers on platforms like Instagram to spread the word. It’s worth noting that a substantial 70% of online sales can be attributed to peer-to-peer reviews facilitated by micro-influencers. Influencers bring authenticity and a personal touch to your brand, and their recommendations can lead to rapid sales growth.
When collaborating with influencers, it’s crucial to choose those who are established figures within your industry. However, it’s equally important to ensure their authenticity and alignment with your brand’s messaging to achieve the greatest impact.
Step 5
Replace standard advertising with product videos that convey emotional stories
In contrast to common assumptions, a significant 60% of millennials display brand loyalty when they genuinely appreciate a brand’s commitment to societal and environmental concerns. They are more likely to make repeat purchases when they perceive brands as socially conscious and compassionate.
Unlike traditional advertising, where brands primarily promote themselves, millennials seek authenticity and expect brands to align with the messages they convey. To leave a lasting impact on consumers, it is imperative to focus on narratives infused with compassion. Whether you opt for product videos or social media content, ensure that the emphasis is not on your brand but on the “why” behind your actions and how they contribute to the betterment of society.
Conclusion
In a world where millennials have significant economic sway, adapting to their preferences is key. They value authenticity, personalization, and social consciousness. To thrive, embrace omnichannel approaches, data insights, social media, and influencer collaborations. Don’t miss the chance to impress millennials by aligning with their values. Explore the power of the Growlytics platform for data-driven success—schedule a demo today!
Related Posts
Omni-channel engagement
5 Steps to Unlock Omni-channel Personlaization
D2C brands are now offering a comprehensive omnichannel experience to millennials.
Growlytics team
Omni-channel engagement
5 Proven Tactics to Boost Your Email Marketing Returns
A comprehensive guide to maximizing ROI of email campaigns as part of a brand’s digital
Growlytics team
Omni-channel engagement
Beginner's guide to building omni-channel marketing strategy
Omni-channel marketing focuses on connecting all of the company’s customers
Growlytics team
Omni-channel engagement
Best Strategies for Targeted Email Marketing
Customers today expect a personalized buying experience. Targeted email marketing
Growlytics team
Omni-channel engagement
Best practice to reduce your email bounce rates
Email bounce is an automated communication sent from a service provider to inform the
Growlytics team
Omni-channel engagement
Growlytics for Shopify - Redefining E-commerce Customer Experiences
Radical changes in consumer behavior and internet technologies ar forcing businesses
Growlytics team
Omni-channel engagement
SMS Marketing mistakes to Avoid
SMS marketing is becoming extremely important for businesses to reach their customers. This blog post will highlight seven of the most common SMS
Growlytics team
Related Posts
Omni-channel Engagement
5 Steps to Unlock Omni-channel Personalization
D2C brands are now offering a comprehensive omnichannel experience to millennials.
Growlytics team
Omni-channel Engagement
5 Proven Tactics to Boost Your Email Marketing Returns
A comprehensive guide to maximizing the ROI of email campaigns as part of a brand’s digital strategy.
Growlytics team
OMNI-CHANNEL ENGAGEMENT
Beginners guide to building omni-channel marketing strategy
Omni-channel marketing focuses on connecting all of the company’s customer data in one place
Growlytics team
Omni-channel engagement
Best Strategies for Targeted Email Marketing
Customers today expect a personalized buying experience. Targeted email marketing is one of the
Omni- channel Engagement
Best Practice to Reduce Your Email Bounce Rates
Email bounce is an automated communication sent from a service provider to inform the sender that his
Omni-channel engagement
Growlytics for Shopify - Redefining E-commerce Customer Experiences
Radical changes in consumer behavior and internet technologies ar forcing businesses
Growlytics team
Omni-channel Engagement
SMS Marketing mistakes to Avoid
This blog post will highlight five of the most common SMS marketing mistakes and how to avoid
Growlytics team
Omni-channel Engagement
The Power of Personalization in Email Marketing
Today’s consumers expect personalized content that addresses their specific needs and interests.