Updated: Feb 17
Hi there, are you into DTC (Direct To Consumer) Industry/Business?
Here are the strange and latest facts/stats related to DTC Industry that might help you and I suggest considering these for educational purposes only:
In fact, 30% of digital retail senior leaders admitted that "executing quickly enough on marketing initiatives" was a top barrier to achieving their ecommerce marketing goals in 2018, and 42% expect this to be a barrier in 2019.
And as the expectations of ecommerce customers increase, marketing budgets are following suit: 65% of digital retail senior leaders said their 2019 budget increased over the previous year. Conversely, only 10% of marketers indicated that they are reducing budget.
In 2018, the top marketing investment priorities for 2018 were acquisition marketing (81%), retention and loyalty marketing (43%) and promotions (32%).
53% of digital retail senior leaders said acquisition marketing met expectations in 2018, and 24% said it exceeded expectations.
As far as where digital retail leaders were less satisfied, 52% said unified customer data (e.g. a single view of the customer) performed below their expectations. Almost the same number had similar levels of dissatisfaction in personalization investments (51%).
65% of digital retail senior leaders have increased budget in 2019 on customer data platforms (CDP) and 52% are increasing investment in personalization technology.
Marketing department's other investments on the uptick in 2019 include alternative payments (47% increase), and AI or machine learning for automated customer service, such as chatbots (45% increase).
Only 16% of marketers increased spending in visual search, while 49% said they're making no investments in this tech at all.
The outlook is even more grim for voice-enabled search: Only 13% of digital retail senior leaders are increasing their investment compared to last year, while 62% do not plan on making any investment in 2019.
In 2018, the hurdles that marketers felt impacted them the most were: managing integrations of technology across the marketing stack (39%); executing quickly enough on marketing initiatives (30%); the inability to get a unified view of the customer (27%), and aging technology systems (23%).
In 2019, DTC brands are increasing their marketing budgets at a higher rate than incumbent retailers - 78% indicated that their 2019 budget is higher than the one they had in 2018. That's a dramatically higher rate than traditional retailers whose budgets increased (60%). Fewer DTC brands decreased their budgets as well: 7% compared to nearly 11% of traditional retailers.
Fueled by venture capital investment, these DTC brands have focused on growth vs profitability, which helps explain why the most common challenge for this particular group of brands is achieving profitability at scale (40% of DTC vs. 11% of incumbent brands).
Because of their relatively young age as companies, digital-first DTC brands seem to be less constrained by some of the barriers that incumbent ecommerce brands face, such as aging technology systems (41% of traditional retailers vs. 7% of DTC brands).
That's all for now....
All the best....