The State of D2C Marketing in 2019 by Yotpo and our final words

This is originally posted in Yotpo. As Filum is focusing on D2C brands so it is also good chance to share this report to you, our potential customers and to make some suggestion.

The shift toward direct-to-consumer commerce has unleashed a revolution in how brands sell. With traditional retail upended, eCommerce has emerged as an equalizing force for brands, prompting them to reimagine their most significant direct touchpoint with their customers: their website.

With eCommerce in the U.S. surpassing $517 billion annually and growing (Statista), we decided to delve into the key investments that D2C brands are making to set themselves apart in this highly competitive arena. Our latest report uncovers everything from top KPIs to marketing channel prioritization to key eCommerce investments (customer content, loyalty programs, and referrals), sliced and diced by company size and by industry verticals.

The report is based on an online survey conducted March-April 2019, in partnership with Magento, an Adobe company. It includes the responses of 512 eCommerce and marketing decision-makers, 41% of them brand founders.

Respondents are located worldwide and use a variety of eCommerce platforms including Magento Commerce, Shopify, SAP Hybris, Salesforce Commerce Cloud, BigCommerce, and WooCommerce. They represent brands across all industries, including Fashion & Accessories, Health & Beauty, Electronics & Telecom, and Food, Beverage, & Tobacco.

Key findings

For the D2C brands surveyed in this report, the top three marketing KPIs across verticals and businesses of all sizes are:

  • eCommerce sales [60%]
  • New customers [54%]
  • Conversion rates [53%]

The top three acquisition channels across verticals and business sizes are:

  • Social media [61%]
  • SEO [51%]
  • Direct traffic [50%]

Interestingly, despite their reliance on social media, 63% of D2C brands see equal or greater ROI from referrals than they do from digital ads, indicating an effective, fixed-cost acquisition channel at a time when social ad costs are steadily climbing.

 The report also reveals that across the board how brands are investing in on-site experiences like reviews (73%), customer photos (36%), customer videos (15%), referrals (33%), and loyalty programs (31%). The implementation of these key commerce marketing tools gives brands an edge and helps them build better, more authentic connections with their customer base.

And Filum also want to add something also critical

If you fast scroll to the last section of the report, The Future of D2C Marketing, you will find this simple but robust chart:

When you look at the only line, there is no chance that the curve is going down in the near future. It also means that the marketing tools will be more diversified. The time of tools consolidation doesn’t not come very soon. 

By that we have to accept the reality that centralization of tools is impossible. We believe that decentralization at application level (marketing tools) and centralization at data level (data unification across the tools) would be the right approach for enterprises on marketing problems from now on.

Especially, covid has dramatically changed the consumer behaviors forever, the first party data will define who will be the winner of D2C game.

Stay tune!

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