In the digital world, the lines are blurred between brands and consumers. This means that DTC brands have to be nimble and responsive to their customers, who have a lot of choices in the marketplace. In difficult times, it’s important to keep this in mind and focus on what you can
control: your brand messaging and strategy. Here are five ways DTC brands can manage growth during tough times.
- Manage growth, don’t chase it: You may see other brands growing quickly at first and think that you need to do the same thing in order to succeed. While this is true for some businesses at certain stages of their development, if you don’t have the right infrastructure in place or aren’t ready to manage an influx of customers, then chasing growth will only lead to more headaches down the line. Instead of chasing growth at all costs, focus on building a foundation for success by improving last-mile delivery and building a strong technology platform so that when your business grows naturally over time (and not because you’re pushing too hard), you can handle it with ease and grace.
- Get distribution right from the start: One of the biggest mistakes DTC brands make is to underestimate the importance of distribution. When you’re building a new business, it’s easy to get excited about your product and forget that there’s more to it than just the product itself. You need to have a plan for getting your product out into the world so that people can buy it and enjoy it!
- Don’t discount deep into profitability: It’s easy to get caught up in discounting when you’re trying to grow your business—after all, who doesn’t love getting something for less? But there are risks associated with discounting too deep into profitability: if you lose money on every sale, then what happens when you have to pay for shipping or marketing costs? If you don’t have enough margin left over after paying those expenses, there won’t be anything left over for growth either. Make sure that you don’t go too far down this road before checking yourself again!
- Improve last-mile delivery: If you’re a DTC brand that’s been around for a while, you know how important it is to have a great last-mile delivery system. Not only does it help you get your product out to customers faster, but it also helps build trust with them—and that’s something that can make all the difference when you’re trying to build a customer base and increase sales.
- Build a foundation for success with technology: Technology has changed the way we do business forever—and not just in the traditional sense of e-commerce and digital marketing. Today, companies need to use technology as an integral part of their operations from start to finish (and sometimes even before they begin). This means using technology to find new ways to streamline operations, automate processes, and improve customer service. Use software like eCommerce platforms and CRM tools to make sure everything is working smoothly behind the scenes before launch day ever arrives!
