Tuesday, January 9

The 5 things in DTC you need to know today

January 09, 2024

🗣 Want to Reach an Audience of 15,000 DTC Brands? Start Here…

🚨 In today’s newsletter 🚨

  • Rethinking DTC Marketing

  • Crafting Shopify Descriptions That Sell

  • eCommerce in Fast Forward

Let’s get into it👇

DTC

#1 - Rethinking DTC Marketing

The Opportunity: New direct-to-consumer marketing strategies are allowing brands to build deeper connections with customers.

The idea:

  • DTC marketing eliminates middlemen so brands can understand their customers better through data collection and analytics.

  • Personalization and customization allow DTC brands to make each customer feel special. Strategies like segmented emails and tailored product offerings cater to individual needs and desires.

Three key strategies: 

  • Influencer marketing on social media helps brands access new audiences who trust particular influencers. Identifying the right influencers is critical.

  • Gathering and analyzing customer data provides critical insights into churn rate, lifetime value, conversion rate and other key metrics. This data powers business growth decisions.

  • Consistent branding across all platforms including emails, website, packaging and more builds familiarity and trust. Customers come to expect a certain experience.

What to do: Pay attention to these marketing trends to understand how customer relationships are evolving in the digital age. What can we learn from disruptive DTC brands?

DTC

#2 - 🔢 Running the Financial Numbers for DTC Brands in 2023

In a roller coaster year, there’s one group of brands that posted some seriously impressive numbers:

  • 30% increase in Net Revenue

  • 51% increase in Gross Profit

  • 3 percentage points higher Contribution Profit

  • 4 percentage points higher Net Income Margin

These businesses all have one thing in common: Their founders and finance teams use Drivepoint, the only FP&A insights platform purpose-built for growing DTC brands.

Simple Modern, Curology, Graza, Immi, and more are already running forecasts, budgets, scenario analysis, and reporting in Drivepoint – with the sophistication of finance teams 5X their size.

Book a personalized Drivepoint demo to run your own numbers, or create your free account and get started right away.

SHOPIFY

#3 - Crafting Shopify Descriptions that Sell

The Rundown: Writing effective Shopify product descriptions that persuade visitors to become buyers.

Steps to Take:

  1. Recognize automation and AI optimization are replacing granular targeting control.

  2. Adapt to evolving privacy protections shrinking access to purchase intent signals.

  3. Adjust for disappearing proven ad placements that drove traffic.

  4. Rethink dependence on advertising platforms with sudden capability changes.

  5. Refocus on creative and emotive messaging as data declines.

Key Takeaway: Follow the 500-word recipe for Shopify descriptions that balance brevity and persuasion for the best sales conversion and SEO boost.

ECOMMERCE

#4 - eCommerce in Fast Forward

The Rundown: Major developments in AI, social media, subscriptions, and other areas are poised to rapidly accelerate the ecommerce industry in 2024. Brands that want to keep pace should partner with Adsperformer to maximize ad spend through AI-driven optimization.

The Details:

  • AI will boost efficiency exponentially through automated product descriptions, landing pages, and recommendations.

  • Data harmonization will finally give brands a complete view of customer behavior.

  • Social commerce evolves as platforms integrate new tools for more engaging shopping.

  • Headless commerce architectures increase agility for faster feature development.

  • Resale and rental business models tap into circular economies.

Why it matters: These changes foreshadow an ecommerce landscape almost unrecognizable from today, with new challenges and opportunities for retailers keeping pace with increasing consumer expectations.

➡️ You can read the article here...

ECOMMERCE

#5 - Smartphone Growth: What It Means for eCommerce

The Rundown: The smartphone market is projected to grow at a 7.3% CAGR through 2034, surpassing $1.6 trillion in valuation. Smartphone penetration continues to increase globally.

What It Means for eCommerce:

  • More consumers accessing the internet primarily through smartphones means ecommerce sites need seamless mobile experiences.

  • With over 63% of smartphone purchases to be made online in 2024, ecommerce has significant room for growth in this market.

  • Developing markets present major ecommerce opportunities as smartphone adoption rises.

How Online Shops Should Adopt: The smartphone boom is a clear indicator that mobile-first ecommerce is essential. Online retailers must optimize for mobile browsing, make checkout seamless on smartphones, and target emerging mobile-centric markets.

The smartphone and ecommerce markets are deeply intertwined. As mobile devices become the primary way people access the internet globally, online shops must continually improve mobile site performance and usability.

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