Designing a reference holistic Direct-to-Consumer (D2C) solution framework – (Part 2)

Continuing from Part 1; which introduced the benefits and concept of holistic D2C solution; this segment outlines one of the many ways traditional CPG/FMCG manufacturer (and other) brands could design their holistic D2C framework

Designing a Typical Holistic D2C Solution Framework – Concept

There are many ways in which brands can approach building their version of a D2C solution… although…

…a typical holistic D2C solution framework would typically comprise of varying combination of initiatives across 3 key D2C modules –
Core Interface, Products & Experiential Services and Channels

1. D2C Core Interface – The Starting Point

As a starting point, all current and future consumer-facing interactions and transactions (shopper + customer) would need to be mapped out as a part of developing the D2C Core Interface module

Defining these D2C core interface initiatives early on, provides the strong foundations necessary for the development of related (D2C) products, services, CX & omni-channel initiatives

To simplify, consumer-facing interactions & transactional initiatives can be categorized under 3 distinct interfaces –

Awareness

Initiatives that typically pertain to the (D2C) inform, discover, educate & recommend related tasks

Commerce

Initiatives that typically pertain to (D2C) sales, payment, fulfillment, re-ordering, repeat purchase and replenishment related tasks

Support

Initiatives that typically pertain to provisioning of consumer (shopper/customer) support, loyalty servicing, product returns/recalls and other such post-sale support related tasks

Depending on myriad of factors, brands may opt to integrate all or apt variations of these interfaces in the development of their holistic D2C program framework

2. D2C Products & Experiential Services – Centered around Consumer’s What’s in it for me (Wiifm) needs

All of the products & services offered by the brand to potential shoppers and existing customers can be categorized under D2C services module

Ideally the brand’s D2C products/services complement the brand’s existing offerings (through existing partner channels) and tailored to meet the consumer’s evolving needs (e.g. frictionless product e-ordering, fulfillment and returns service, personalized sampler box, subscription based replenishment service, etc.)

Addressing the shopper/customer’s Wiifm needs is one of the critical inputs into designing any D2C products & experiential services

think: why (unique experiential benefits, lower pricing, personalization, reward program, etc.) should potential shoppers & existing customers choose the brand’s D2C products & services over a plethora of already existing r/e-tailer’s solutions?

Taking the example of D2C promotional/sample subscription box service; which could particularly prove useful in infusing supportive friction during the product discovery & replenishment stages of the shopper/customer journey…

Other benefits could include increasing recurring sales, x/up-sell transactions & revenue, improving customer loyalty whilst decreasing acquisition acquisition & retention costs over time [more on this topic in a separate post]

Brands could further ensure higher consumer engagement, enhanced CX and recurring revenue by truly differentiating their D2C product & experiential service proposition from their regular partner distribution channels

3. D2C Channels – Focus on Omnipresence

Finally, developing unique D2C Channels module provides the brand with more (end-2-end) control over their narrative, products, services and revenue models

This omnipresence focused module can be designed to augment various stages within the consumer’s retail journey

For example in-store product discovery & brand engagement (experiential physical) platform could be complemented with an online commerce (seamless digital) platform to provide a richer customer experience

D2C channels can be comprised of various combination of online, mobile, IoT/voice, social, and traditional brick-n-mortar formats

Depending on their individual goals & capabilities (product mix, local market dynamics, partnerships, capital investment, risk appetite, time-to-market, competitive landscape, ROI expectations, etc.); CPG/FMCG brands may choose to develop variations of the reference holistic D2C solution that address specific business challenges, opportunities and requirements

Forthcoming segments will explore these D2C solution variations, an example of a D2C service model as well as the role of CX, data science and digital supply chain within the overall D2C program

Stay tuned!