Why DTC is More Than Moving Cases: Part 1

Part 1 – Defining Customer Journeys through Digital

In case you missed the other articles in this series:
Part 2 – It’s All About Control
Part 3 – Don’t Be The Last To The First-Party Party

Savvy spirits brands know that Direct-to-Consumer (DTC) ecommerce can be a powerful tool to reach a wider audience and grow sales. But that’s just scratching the surface. In the first of Drinkubator’s three-part blog series, we explore how DTC ecommerce affects the lifeblood of the startup alcohol brand: The Customer.

DTC is What Consumers Expect

More and more people want to shop directly with the brands they know and trust instead of having a retailer mediate the process. A survey conducted by BrandShop makes the case:

82% of consumers expect to be able to engage with a brand on its website, while 88% prefer to do so.
People are 57% more likely to start their online shopping journey on the brand’s website than through a retailer.

The reason most often given by consumers is that they trust they will find more comprehensive product information and support on a brand website. You might be surprised to find that your brand isn’t the only one looking to forge a lasting relationship— According to a survey from marketing firm Merkle:

81% of consumers said they want to form a relationship with brands.

A DTC e-commerce experience is an entryway to a relationship that not only blooms but grows and flourishes over time.

Adapt the Purchase Journey to Suit Your Target Customer

Optimizing the customer journey across all marketing channels is paramount to launching successful DTC sales. Using your DTC platform’s data, you can intimately understand who your customers are, what trends they enjoy, and their buying preferences.

Do customers repurchase more through SMS or email campaigns? How frequently do your best customers repurchase, and what demographic traits do repurchasers share? Which product has the highest abandoned cart rate? Whatever your brand’s consumer preferences or shopping behavior may be, customizing each step along the customer journey can make a massive difference in garnering sales and loyalty.

From a practical standpoint, DTC ecomm allows you to determine 1) which digital touchpoints you use to drive home a message; and 2) the type of content that will likely resonate with your audience. This is increasingly important, as McKinsey & Company reports:

76% of customers said receiving personalized communications was a key factor in prompting their consideration of a brand, and 78% said such content made them more likely to repurchase.

Optimized DTC e-commerce is a crucial step in tapping the mainline of customer data and enabling a more personal, customized, and profitable customer-brand relationship.

Achieve a Higher Customer Lifetime Value (CLV)

Improving CLV should be top of mind for anyone vying for attention in the competitive alcoholic beverage space. DTC ecomm facilitates better customer relationships by utilizing owned first-party consumer data to engage your customer with even more relevant messaging. In addition, your brand can use A/B testing and precision segmentation to optimize your messaging regularly.

Integrating other platforms into your DTC strategy is a powerful way to nurture the relationship between your brand and customers, ultimately resulting in CLV growth. For instance, brands can leverage email flows with marketing automation platforms like Klaviyo to create high-value customer segments. Then, with real-time data on purchasing behavior, you can send highly targeted emails promoting your most premium offerings. Sure, achieving a high Average Basket Value is great, but what about making sure the big spenders keep coming back?

More needs to be done to drive up CLV, and one surefire CLV-boosting tactic is to send repeat customers messages with information about subscription and auto-refill programs. Keeping those loyal customers engaged is fundamental for brands to drive long-term enterprise value, and SMS and direct messaging are great ways to drive that engagement.

Is Your Brand Story Being Heard?

At Drinkubator, we understand the unique challenges and regulations alcoholic beverage brands face. We’ll work with you to create a tailored digital and retail support strategy that aligns with your brand values and resonates with your target audience. Contact us today to schedule a conversation and see how you can leverage our industry expertise to take your brand to the next level.