Empower Your D2C Business Scaling Strategy with These 3 Tips

By Logicserve News Desk

  • January 20, 2022,
D2C Business scaling strategy

The exponential growth of e-commerce in an increasingly digital India has paved the path for the globally popular direct-to-consumer model in the country. The initial success of a few brands encouraged several existing brands and start-ups to experiment with the new business model. However, this has made the D2C space overcrowded and business scaling a gruelling task.

According to a Salesforce report, there are 600+ direct-to-consumer brands in the country. But despite the competition, there’s plenty of opportunity for the deserving brands as the market is expected to touch $100 billion by 2025.

How can D2C brands tackle the business scaling challenge and grow sustainably? Here are 3 tips that can help-

1. Ensure Consistent, High-Quality Products

Nothing stagnates the e-commerce growth like quality issues do. In the digital world, consumers can freely share their opinions. Thus, offering quality products and consistently innovating is key. To scale rapidly, collect data of your suppliers, including consistency across orders and batches, broken or damaged goods frequency, and overall fulfilment rate.

The data should make it easier for you to decide whether you’d like to continue with the current supplier base or look for someone new. If you switch to new suppliers, ensure that all the terms and conditions regarding production capabilities, product specs, service levels, and regulatory requirements are discussed thoroughly beforehand. 

2. Delve Deeper Into Sales Data

It is very common for brands to overlook the specifics when they are growing. Why dig into the data when sales are increasing, right? But this mistake can cost D2C businesses their revenue. All the vital metrics, especially the churn rate, retention rate, and CPA, should be religiously monitored at all times, including the high growth periods.

By delving deeper into these data points, e-commerce companies and D2C brands can discover insights that could accelerate their growth further or improve the sales funnel for higher conversions and sales. Most D2C brands trust expert digital marketers to help them make sense of the collected data and get actionable insights.

3. Invest in Customer Retention

Customer acquisition can be an expensive and time-consuming affair in the digital world. Thus, one of the most important functions of e-commerce platforms is retaining customers. Even exponential growth will not be sustainable if the churn rates are high.

As the business scales, pay close attention to the customer journey and analyse each step of the process to find opportunities for improvement. It could be starting a loyalty program, improving website navigation, adding more payment options, offering faster delivery, adding a live chat feature, or collecting more emails for newsletters. 

Scaling D2C Business to Achieve Sustainable Growth

The number of businesses wanting to explore the D2C model has increased significantly in the post-COVID era. But for a D2C brand to succeed and achieve sustainable growth, it needs to scale efficiently and consistently.

The assistance of experienced digital marketing experts can help an e-business eliminate the roadblocks stagnating its growth. As professional marketers better understand the dynamics of the digital world and regularly work with brands across industries, their knowledge can be relied upon to scale your business and achieve strong and sustainable growth. 

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