Unlocking Value: Which D2C Model Is Right For Your Business?
Saffron Edge
Mar 3, 2022
6 min read

Assessing the Perfect D2C Model for Your Business
In general, there are five kinds of D2C models based on a scale of increasing technological and business complexities. Now, the thing is, each of these model archetypes delivers a specific profile of value potential across the consumers and drives used to generate the business value. The type of value returned by each archetype can help the D2C brands to analyze and pick the perfect fit for their business. Let’s discuss each of them one by one.Knowledge Hubs
The first model in the list is knowledge hubs that focus on content customer engagement. Its primary purpose is to engage consumers through unique, brand-centric, and customer-oriented engagement that inspires and educates them without any eCommerce infrastructure. Knowledge hubs are primarily used to gather customer information regarding their interaction with content, learning about their preferences and purchase intent while delivering personalized customer experiences. For instance, Patron’s Cocktail Lab is an intelligent, data-driven cocktail recommendation engine that offers innovative cocktail recipes based on individual preferences and encourages buyers to try new things.Digital Stores

Curated Subscription Model
Subscriptions models have a slight risk compared to other D2C models as they impose challenges to the business regarding customer engagement, retention, acquisition, and loyalty. However, if implemented correctly, they are a pretty good direct source of revenue generation that works on recurring shipments of products and services customized as per consumer needs. Curated subscription models help businesses know more about the customers’ preferences, the items they frequently buy, and the products they might want to purchase. Companies can curate personalized deals for their customers with all this information, deepening the roots of brand loyalty and customer engagement. For instance, companies such as Daily Harvest and DollarShaveClub leverage the benefits of subscription models, which provide customers with the products and services they regularly want as per their dependable schedule.Personalized D2C Model
Well, this one might be clear with the name itself. Adding a touch of personalization in a D2C business develops a one-to-one relationship with the customers and makes things pretty smooth. This model focuses on the more profound insights into the customers’ interests, preferences, and needs to enhance consumer engagement and increase sales. According to a report by Epsilon, 80% of customers prefer shopping from brands that offer them customized experiences. Personalized D2C models require back-end technologies and advanced features such as artificial intelligence, machine learning, and big data to analyze the customer data to understand their needs better. When you offer customers the things they have always wanted at their convenience, they will keep returning to your brand and get everything directly from you. For example, a personalized dog food company named Just Right Pet Food (owned by Nestle Purina, a pet food subsidiary of Nestle) ensures a fully personalized experience to dog lovers. The company asks all of its customers to create a profile of their dogs. The profile includes their age, needs, and taste preferences. After that, Purina offers their own recommendations based on the information they get from their customers along with the nutrition guidelines in the products they suggest. The company then delivers the personalized pet food, nutrition, and feeding plan directly to the buyers’ doorstep - ensuring an authentic one-to-one customer experience.Touchpoint Commerce

Choose the Right D2C Model for Your Brand
And why not? Of course, you have a lot of opportunities to set up your D2C business, but what’s the harm in choosing the one that suits you the best? As a business owner (or just as a learner), it is crucial to understand that all the companies out there are using some tactics to deliver an unmatched customer experience. In that competitive scenario, you have to choose the right path and implement the apt D2C business model to boost your business growth and engage as many customers as possible. Get in touch with our experts to know how your business can achieve D2C growth. We over comprehensive direct-to-consumer marketing services that are growth-oriented and result-driven. Feel free to reach out to us!Subscribe to our newsletter
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