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Lessons Legacy Brands Can Learn From Leading DTC Brands & How They Use First-Party Data

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Saffron Edge

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Aug 10, 2022

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7 min read

There's no doubt that direct-to-consumer (DTC) brands have disrupted the retail landscape. They've quickly become some of the most popular and profitable brands thanks to their unique ways of marketing and selling their products, which have made them very popular.

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What can legacy brands learn from these DTC success stories? A lot, it turns out. Here are a few lessons that all brands can take from leading DTC companies:

1. Use first-party data to your advantage

One of the biggest advantages of DTC brands is their ability to collect and use first-party data. This data is incredibly valuable, as one can use it to understand customers better and personalize their shopping experience.

Here are a few lessons you can learn from leading brands on how to use data:

  • Collect as much data as possible

If you want to improve the customer experience, it's important to collect as much data as possible. DTC brands are experts at this, often using loyalty programs and customer surveys to gather information. This data is then used to make improvements based on customer feedback.

Even if you don't have access to the same amount of data, there are still ways to collect valuable information from your customers. Using tactics like customer surveys, you can gain insight into what your customers want and need. That will help you make the necessary changes to improve their experience.
  • Use data to personalize the customer experience.

DTC brands use data to personalize the customer experience by understanding their customers' needs and desires.

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It allows them to create a shopping experience tailored to each customer. You can use data to personalize the customer experience in your store. By understanding your customers' needs and desires, you can create a shopping experience tailored to each customer. It will help you build relationships with your customers and increase sales.

  • Use data to improve your business.

DTC brands use data to improve their businesses continuously. They do this by using data to test new hypotheses and measure results. By taking advantage of data, DTC businesses can continually improve their products, services, and operations. It allows them to stay ahead of the competition and provide better value to their customers.

There are many ways to collect data that one can use to improve your business. Online surveys, customer feedback forms, and user testing are all great sources of information. You can also use analytics tools to track how customers interact with your website or app. By understanding how people use your product, you can improve conversion rates and customer satisfaction.

2. Build a strong brand identity

Another key to DTC's success has a strong brand identity. These brands know who they are and what they stand for, and they use this to connect with customers on a deeper level.

Here are a few lessons you can learn from leading brands on brand identity:

  • Define your brand identity

To create a strong brand identity, you need to understand who you are as a business. What values do you stand for? What kind of customer are you targeting? Once you have a clear understanding of your brand identity, you can start to craft messaging and visuals that will resonate with your target audience.

A few important things should reflect your brand identity in everything from your website design to how you answer customer questions. By defining your brand identity, you'll create a consistent and recognizable brand that customers will trust and remember.

  • Be true to your brand identity.

It's not enough to have a strong brand identity; you also need to be true to it in everything you do. From how you communicate with customers to the products you sell, make sure that everything aligns with your brand values. That will help build trust and loyalty with your customer base.

If you're not consistent with your branding, customers will get confused and may not trust your company. Make sure that you're always putting your best foot forward by staying true to your brand identity. It's the only way to build a strong, lasting relationship with your customers.

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  • Tell a compelling story.

Your brand story is one of the most important elements of your business. It's what will connect customers to your business on an emotional level and make them want to support your brand.

Tell a compelling story that will inspire customers to connect with your brand. Focus on why you started the business and what makes you unique. That will resonate with customers and make them want to support your brand. Keep it clear, concise, and authentic for the best results.

  • Invest in marketing

A strong brand identity is nothing without a well-executed marketing strategy. Invest in activities that will help you reach your target audience and deliver your message in a way that resonates with them. This could include online advertising, PR, content marketing, or influencer marketing.

You'll ensure that your brand stands out from the competition and reaches the right people. With a solid marketing strategy in place, you'll be able to achieve your business goals and build a successful brand.

  • Build a community

DTC brands are often built on the power of community. Find ways to connect with your customers and create a space where they can interact with each other. It could be through social media, an email list, or even events and meetups. By building a community around your brand, you can create loyalty and customer engagement to help your business thrive.

The community can also help you build relationships with other businesses and individuals in your industry. You can create a stronger network that can help you reach new customers and grow your business by working together.

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3. Spend money on the customer experience.

DTC brands also know the importance of investing in customer experience. They know that making the experience seamless and fun is important to keeping customers happy and interested.

Here are some things that leading DTC brands do to create a great customer experience:

  • The first step to delivering a great customer experience is making it easy for customers to find what they're looking for. DTC brands need to have a well-organized website that makes it easy for visitors to navigate and find information.
  • The second is providing a good customer experience; Good customer service means being available when your customers need you. Personalization can go a long way in making your customer feel valued. In today's fast-paced world, customers expect quick responses to their inquiries.
  • DTC brands offer a wide range of products and services. From clothing and accessories to home goods and beauty products, DTC brands have something for everyone. And with competitive prices and convenient online shopping, it's easy to find the perfect item for your needs.
  • They make it easy for customers to purchase items online or in-store. This makes it convenient for customers who may not have the time or ability to visit a store in person.
  • They offer loyalty programs and discounts to keep customers coming back. This allows them to maintain a good relationship with their customers and encourages repeat business. Additionally, it helps them build brand loyalty among their customer base.

By following these lessons, you can create a customer experience that will keep your customers happy and coming back for more.

4. Be responsive to customer feedback.

Finally, DTC companies are typically very responsive to customer feedback. They're always looking for ways to improve the customer experience and ensure that their products and services meet customer needs.

Here are a few lessons that you can learn from leading brands about customer feedback:

  • Always listen to customer feedback. DTC companies are constantly monitoring what customers are saying about their experiences. They use this feedback to improve their products and services.
  • Be quick to respond to customer feedback. DTC companies understand that customers expect an immediate response when they give feedback. They respond quickly and address any concerns that customers may have.
  • Use customer feedback to improve your product or service. DTC companies use customer feedback to improve their products and services. They understand that customer feedback is valuable and use it to make changes that will enhance the customer experience.
  • Make sure your product or service meets customer needs. DTC companies focus on making sure their products and services meet customer needs. They understand that customers expect a high level of quality, and they work to meet those expectations.

While one can apply these lessons to any business, they're especially important for legacy brands looking to stay relevant in today's ever-changing marketplace. By following these lessons, brands can keep up with the competition and set themselves up for long-term success.