Should you sell Direct to Consumers?
Hi, I’m Thomas Crouch. I’m currently the Sales Executive with Active Club Solutions, Inc., a software development business that created Activ8Commerce,a leading sales & marketing platform for businesses who sell Direct-to-Consumer (DTC). I have a 28-year history in various aspects of the wine industry, specifically in direct sales and marketing.
Early on, as a recent college grad, working in my field of education, I discovered I had just spent nearly a decade studying, training and practicing something that fit like a wool sweater dried in high heat. Anything had to be more comfortable.
Desperation then handed me a direct sales job and I soon found a path and a vocation that would last me a lifetime.
Direct Sales is really nothing more than:
•Building Relationships & Sharing Solutions
•Regardless of the product
Is DTC Right for Me & My Business?
So, again, is DTC right for my business?
- Who are you?
- What do you produce?
- How do you currently sell it?
But will consumers listen to me?
- 55% of consumers prefer to buy directly from brands
- 82% of consumers are loyal to brands
- 62% are willing to spend more for a customized shopping experience
- 78% of shoppers trust manufacturers when researching products —
- More than social media,
- More than news sites
- And even more than experts
Buyers also like experiences
that only producers can provide
- 57% of consumers are heavily influenced by personal experiences and communication from brands themselves — that’s far more than the 16% who say brand reputation alone is what inspires them to buy
- More than half of consumers opt to visit brand websites (rather than reseller websites) because they offer more comprehensive information and guides
Experience speaks volumes Look at what Wineries have done
In 2021 Wineries (producers) sold over 65% of their products through consumer experience sales channels
- Tasting rooms ~ 30%
- Clubs & Memberships ~ 26%
- Online Web Site ~ 10%
How can I benefit from DTC?
Reasons you Benefit
- Reach more potential customers. Are you getting the shelf space you hope for from your distributor? Consumer Direct allows you to:
- grow your own client list and market to them directly
- without competing for retail shelf space and placement
- Know and Understand Customers
- With a modern sales system, you can track more data that ever before possible. This lets you deliver better personal service and a more meaningful experience.
- People buy from people they like.
- Control your brand & performance
- Create the image you want to project: Exclusive boutique, Comfy country gift shop, Earth-centric farm-to-table
- Sell in multiple channels: Tasting room, Clubs, Allotments, Online, Tele-sales
- Deliver a unique experience
Buyers associate a good feeling with a great experience. Your efforts become profitable on the second purchase, so a great experience can keep them coming back for more. Offer them:
- Clubs & Memberships
- Tours and product tasting/demos
- Events and parties
- Exclusive access to you and your product
- Get to market faster
- Test new products before big launches
- Eliminate middleman timelines
- Deliver on customer expectations
Creating a plan
Create a meaningful brand and stick to it
- The confused mind always says “NO”.
- Be authentic. Your brand should match yourself and your target audience so be believable.
- Be consistent. Day in, day out, project the same message
Hire intelligently and strategically
Don’t try to wear too many hats. Did you start making wine or distilling spirits because you have a passion for spread sheets and government reporting?
Too many small businesses fail because they try to do it all themselves. Focus on your passion and hire specific masters for other specific tasks.
Commit to DTC Costs
- A good system can keep you efficient
- A bad system can waste your money
- Your old college laptop probably won’t cut it
- Buy modern, multi-tasking equipment.
- Fancy swivel screens won’t make customers buy again.
- 2% – 3% is realistic, so plan for it
- Build these costs into product pricing
what can DTC help me do?
- Connect because consumers love it
- Create your own community
- March to the beat of your own drum
- Manage your own destiny
- Make more money
So, what’s next?
Are you ready to control your own business destiny?
Let’s talk about your DTC plans and needs.
Activ8 Commerce offers the most complete DTC sales system on the market
Book a demo and I’ll show you how you can implement a DTC plan of your own.
- Posted by activ8commerce
- On March 31, 2023
- 0 Comment