Digitally native vertical brands, or DNVBs, have exploded in popularity. These brands cut out the middleman, and prioritize a positive direct relationship with their customers. As they expand, however, such relationships become more difficult to maintain. DNVBs find themselves having to balance the importance of relationships, their growing industry, as well as any potential problems.
Importance of Relationships
Customer service has always been one of the essential aspects of a business. After all, without customers, it’s impossible to generate income and keep building the business. Direct customer service has been one of the trademarks of DNVBs for as long as they’ve been around. They’ve built a reputation on stellar client care, but things could be changing soon as companies expand.
The number of people making purchases online continues to grow. More and more of those people are opting to buy from up-and-coming digitally native vertical brands. According to Internet Retail, out of the top 500 online retailers, smaller digitally native brands saw some of the highest growth last year.
As DNVBs grow more popular, the demand has spiked. Some groups have struggled to keep up with stock. They may run out of products that they’ve already promised people. Other companies have run into trouble with their warehouse technology. When customers don’t receive the products, the group’s customer service staff are flooded with requests. Many times, there aren’t enough staff to keep up. This delays any resolutions, which only makes customers even more frustrated.
Today, DNVBs find themselves in a bit of a pinch. As they grow, their customer service staff struggle to resolve issues. One option would be for DNVBs to outsource their customer service programs, but few brands are willing to take the leap. DNVBs pride themselves on their signature direct relationships with their customers. Outsourcing their customer service takes away from their foundational signature experience. Such an action would move customer service in a new direction, therefore ruining their reputation.
Digitally native brands are a growing sector, but their popularity is adding pressure to their customer service departments. An increasing number of buyers are choosing to make their purchases from new DNVBs. Many of these brands were founded on reliable customer service. Expansion options such as outsourcing would endanger their reputation for direct, personal, and customized client care.