Most direct-to-consumer brands start out as a business that creates and sells a single product. However, we have started seeing a new trend. These brands are branching out into more categories. Their goal is to keep their customers happy and engaged. Many groups realize that they need to expand in order to do so.
Keep Customers Engaged
DTC brands are less focused on using paid marketing programs to continually pick up one-time customers. Instead, they want to create a system that will keep their customers engaged. Now, DTC brands are trying to see how far beyond their initial value propositions they can go. They want to expand beyond a single product and instead control an entire lifestyle category.
Utilizing Data to Determine Next Steps
Direct-to-consumer brands are highly focused on keeping their customers engaged with their brand. One of their trademarks is their direct connection to their clients. They own their customers’ data and feedback instead of outsourcing it to retailers. This is a powerful tool. DTC brands have their finger on the pulse of what people need, and they’re often more than happy to expand in order to keep their customers with them.
Setting Parameters During Expansion
DTC brands shouldn’t make the mistake of expanding too far. In order to succeed, they need to define their parameters. They can’t afford to lose the trust of their customers by not focusing enough on what people need. People get on board with a company because of its long-term vision and brand. If an organization changes too rapidly, the relationship between the company and the consumer will be damaged.
Challenges Expanding Brands Face
Entering this next phase is not without its challenges. Brands will have to live up to the vision that they originally presented to their investors. They will have to remain true to their founding principles while trying to expand in order to keep up with the competition. DTC brands need to use their data wisely to stay in touch with what their customers want and need. This is a balancing act with dangerous consequences. DTC brands are built on direct communication with customers. If a brand loses that, they lose what sets them apart from traditional brands.
Direct-to-consumer brands are constantly evolving. The newest trend is expansion beyond their single product. Now they’re taking over entire categories. Doing so, however, is not without its difficulties.