Wednesday, March 27

The 5 things in DTC you need to know today

March 27, 2024

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🚨 In today’s newsletter 🚨

  • AI Steals the Show at Shoptalk

  • Brick-and-Mortar is Back: How DTC Brands are Winning in 2024

  • Creating the Ideal D2C eCommerce Experience

  • Let’s get into it👇

AI
#1 - AI Steals the Show at Shoptalk

The Scoop: At Shoptalk, retail and e-commerce brands raved about using AI to enhance search, personalize experiences, and boost conversions. But AI success requires quality data and serious investment.

Connecting with Customers: AI-powered search and personalized product recommendations help D2C brands understand and cater to individual customer needs. AI-driven SMS campaigns have shown higher engagement and sales compared to manual efforts.

Brand Opportunities:

  • Create AI search models for finding products using everyday language and unique attributes

  • Generate personalized marketing messages for SMS, email, and web using AI

  • Use AI image generation for cost-effective product and ad visuals

  • Partner with AI vendors for intelligent chatbots and virtual try-ons

  • Leverage AI to predict churn and offer proactive retention perks

Measuring Success:

  • Compare click-through and conversion rates of AI vs. manual campaigns

  • Track customer LTV and repurchase rates to gauge AI-powered personalization

  • Monitor reduction in customer service inquiries after implementing AI support

What's Next: As AI advances, D2C brands will compete to deliver ultra-personalized, frictionless experiences. However, AI reliance requires focus on data management and model training, as well as transparency and maintaining human touch.

Our Two Cents: D2C brands should strategically identify areas where AI can add unique value based on their products, audience, and goals. A measured, iterative approach to AI integration is key to long-term success.

➡️ You can read the article here...

PROMPT DAILY
#2 - Kickstart Your Day with AI Insights from Prompts Daily

Prompts Daily offers a fresh take on AI, serving up the latest tools and trends in bite-sized pieces. It’s smart, it’s swift, and it’s set to supercharge your productivity and innovation.

RETAIL
#3 - Brick-and-Mortar is Back: How DTC Brands are Winning in 2024

The Scoop: Brick-and-mortar stores are far from dead. But in 2024, the successful brands have fully embraced an omnichannel world. Despite some store closings, retailers who create immersive in-store experiences and use physical locations to drive engagement are coming out on top.

What Customers Want: Consumers today are craving in-person experiences that go way beyond just buying stuff. They want to step inside and really feel what a brand is all about. And they're looking for share-worthy moments to post on social. The smartest DTC companies see their stores as an opportunity to connect with customers on a whole new level.

Ideas to Try:

  • Throw can't-miss events and pop-ups for new product drops

  • Get influencers and ambassadors in the store to create buzz

  • Dream up hands-on experiences that bring your brand to life

  • Design your stores to be a social media paradise

  • Make your locations double as fulfillment centers

What to Track:

  • Foot traffic, time spent in-store, and sales

  • Social posts, mentions, and user-generated content

  • The product mix people buy in-store vs. online

What's Next: As online shopping keeps growing, DTC retail will likely focus on flagship stores in major cities that make a big brand splash. Pop-ups will be a go-to for testing out new areas. And expect in-store tech to take the experience to a whole new level.

The Bottom Line: For DTC brands, retail isn't just about ringing the register - it's about making a lasting impression on your community. Don't be afraid to reimagine what a store can be, but grow smart. When a customer walks in, give them an experience they'll never forget.

DTC Daily’s Monthly Spotlight:

Upcoming Events:

June 11-13: CommerceNext Growth Show in New York City.

Need a Graphic Designer? Cost effective solution, instead of full-time employee: Delesign 


🗣 Have an upcoming event or tools you’d like to recommend to 33,441 DTC Brands? Click Here

RESOURCES
#4 - Things Worth Checking Out

AI - An AI shopping assistant called Cherry that helps you discover products using screenshots or images

STUDY - How AI is changing the way people shop

TRENDS - Three trends shaping home, garden and furniture ecommerce in 2024

INSIGHTS - How playing offense on sustainability can power ecommerce performance

INTERNATIONAL - Is Temu a threat to Amazon and Etsy’s ecommerce dominance?

CUSTOMER EXPERIENCE
#5 - Creating the Ideal D2C eCommerce Experience

The Lowdown: To thrive as a direct-to-consumer brand, nailing your e-commerce website is crucial. Focus on AI chatbots for speedy support, prioritize SEO, continuously test UX, and streamline checkout.

Connecting with Your Tribe: A well-crafted D2C website lets you own the customer journey from discovery to purchase and beyond. An intuitive, personalized experience builds trust and loyalty.

Big Opportunities:

  • Use AI chatbots for 24/7 personalized support and recommendations

  • Research keywords to optimize category and product pages for SEO

  • A/B test CTAs, visuals, and copy to maximize conversions

  • Offer varied payment options like credit cards, PayPal, Apple Pay, buy-now-pay-later

  • Launch a pre-launch "coming soon" page to build email list and buzz

Keeping Score:

  • Monitor conversion rates, average order value, customer acquisition costs

  • Track engagement metrics like time on site, pages per session, bounce rates

  • Survey customers post-purchase on ease of navigation and checkout

Eyes on the Prize: As e-commerce booms, D2C brands will focus on immersive, interactive shopping experiences. Expect more AI/ML for real-time personalization and AR/VR for virtual try-ons.

Real Talk: While SEO and UX are essential, winning D2C brands will go beyond transactions. Use your website to tell authentic stories, engage with interactive content, and provide value to earn long-term loyalty. Your site is your brand's storefront, so ensure it reflects who you are.

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