Spurred by the coronavirus pandemic, some of the worlds biggest brands are opening online stores serving products direct to customers’ homes
PepsiCo, Nestlé and Heinz all launched direct-to-consumer (D2C) offerings in lockdown, appealing to those who couldn’t leave their home, but were dead set on their favorite ketchup or kombucha brand.
Newly hatched D2C brands are now creating their own databases, analyzing behavioral and sales data to maximize marketing and profits. They are A/B testing – comparative user-experience research – new offers online and using their websites as labs for product research and development.
What the pandemic has taught many companies is D2C e-commerce isn’t just for smarter speciality startups that don’t want legacy retail and big overheads; it’s for all brands looking to drive preference, loyalty and repeat sales through a directly owned relationship.
“We believe there will be a ‘lockdown loyalty effect’. Consumers will remember the brands and retailers that got them through the darkest lockdown days,” Hugh Fletcher, global head of innovation at Wunderman Thompson Commerce concludes.
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Powerful service partnerships are beginning to emerge that are able to better respond to changes in customer needs, desires and expectations.