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?Five Key Things DTC Brands Must Consider For Building A Successful Subscriptions Program

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Saffron Edge

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Mar 11, 2022

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6 min read

Today, retail and wholesale businesses are trying to reach out to more consumers and get more people to buy their products in this fast-paced world. While retail and wholesale stores still exist, many users and consumers have moved towards purchasing online products and services.  Technology has grown to where stores provide various options and products on their websites or mobile or web applications. Businesses have increasingly been moving towards setting up their digital platforms and using digital devices and social media platforms as much as possible to reach out to more clients and set up a broader consumer base.  ?Five Key Things DTC Brands Source: Pexels While many businesses sell to businesses, businesses also directly sell to consumers. Businesses can now directly reach customers and eliminate the middleman. It helps both the companies and the clients since it increases the profits and decreases the expenses of the customers. Businesses use virtual digital platforms and various digital tools to reach the target audience and even keep data of their purchases to serve their clients better.  Hence, many businesses have become direct-to-consumer brands, selling directly to end consumers.  By becoming direct to consumer brands, businesses eliminate the middleman and take all the sales, advertising, marketing, costs, revenue, and profits on themselves. It increases the businesses' profits, enhances clients' customer experience, and even sets better relationships between consumers and companies.  Let’s understand how DTC brands can implement a successful subscription plan. It is essential to understand what direct-to-consumer brands are and how they work. 

What are direct-to-consumer brands?

Direct-to-consumer brands are companies or organizations that sell directly to end-users or the final user of any product or service. These direct-to-consumer brands can be consumer product businesses, service providers, huge companies, or even individuals selling something or the other for the users. Direct to consumer brands are meant to sell to the final consumers, and the products or services are not meant to be sold further. 

1. They save costs of maintaining warehouses

Direct-to-consumer brands mostly have their websites or mobile or web applications to buy the products directly. These brands eliminate the middleman of all kinds and instantly serve the needs of a consumer to maximize their profits. With the intermediaries gone, selling through online platforms saves on the costs of maintaining an instant warehouse and a fully loaded store. 

2. All mediators are eliminated from the chain

Direct to consumer brands directly sell to customers by removing all the intermediaries between a business and its final users. It benefits both – the users and the company – because the business can earn a high profit by removing mediators. On the other hand, consumers can buy products at lower costs since the middleman's gain is not more included in the sale of the product. 

3. They offer a seamless shopping experience

Direct to consumer brands are at a great advantage since most people buy products online. Be it the younger or, the older generation, everyone has begun to shop for most things online because of how convenient and easy it is. It is a vast opportunity for Direct to consumer brands to sell their products directly to the final customers through their websites or applications.  What are direct-to-consumer brands Source: Pexels

4. They offer better discounts and deals

Direct to Consumer brands have more room and budget to provide discounts and other offers to the customers. It attracts more and more users to buy a product and keeps competitors on their toes. With no intermediary in between, Direct to Consumer brands can easily offer discounts and coupon codes, and keeping their profit aside, DTC brands can easily offer competitive pricing to customers. 

5. DTC brands have more control over their business

Direct to Consumer brands have complete control over everything in selling directly to the customers. That includes making their advertising, marketing, cost-cutting, revenue-making, and all other decisions. Direct to Consumer brands also have complete freedom to make creative or any other changes in their advertisements or marketing techniques. These brands can try different things out and then choose the one that suits their brand's image the most.  By switching to the Direct to Consumer business model, businesses have many more clients and users than ever before. Direct to Consumer brands can easily target a specific audience through various digital mediums and online platforms and convert customers. Direct to Consumer brands also have immense opportunities to convert customers and create their loyal client base. With the right content, website elements, and products, Direct to Consumer brands can easily attract more and more users every day and earn more profits. 

?Five Key Things DTC Brands Must Consider For Building A Successful Subscriptions Program

Direct to Consumer brands have increasingly been moving towards building a subscription plan. In fact, after the pandemic, it has become even more critical to get a subscription plan. With a subscription model, the lifetime value of customers is also increased. The subscription model also offers higher margins for Direct to Consumer brands to operate within.  ?Five Key Things DTC Brands Source: Pexels By offering a subscription model, Direct to Consumer brands can provide users with various shopping experiences and choices. It also makes it extremely easy for businesses to keep track of demands through these subscription models. 

Five major things that businesses need to keep in mind while developing a successful subscription program are: 

  • Before building a subscription plan, businesses should ensure that they sell only one product or one single range of products. This way, it becomes effortless for companies to keep track of their subscribed users. It also becomes elementary for businesses to seek feedback on just one product from users. It also helps Direct to Consumer brands to ensure the availability of a product and collect data on the purchases made by clients. Not just that, but Direct to Consumer brands selling one product can quickly become the best in the business and become known as the king in the industry.
  • It is essential to ensure that your product is such that it is relevant to be subscribed to. Subscription should be provided on a recurring event or keeps happening or updating every month. It doesn't make sense to offer a subscription model that either doesn't offer anything new or doesn't get updated. 
  • When Direct to Consumer brands offer a subscription program, they should ensure that the dates for subscribing vary. It means that the users choose how often they wish to receive your subscription package or how long they want to be subscribed to you. While keeping your target audience in mind, these choices should be made and should be plenty. Also, users should choose to make adjustments to their subscription programs at any point in time.
  • Direct Consumer brands should also focus on delivering a more incredible and better customer experience to the subscribed users than to unsubscribed users. The customers should receive a better consumer experience and should want to keep subscribing to you because of the quality of your product. 
  • Direct to Consumer brands that make subscriptions extremely easy to cancel are known to do a lot better than those who make it difficult on the users. It should be effortless for your customers to cancel their subscriptions at any time without any hassle. 
We help Direct to Consumer brands in building a successful online presence. Our team of marketers and online experts understand your target audience and work towards increasing your business's profits and delivering a good consumer experience. Contact us today!