{"id":13274,"date":"2021-12-13T11:59:57","date_gmt":"2021-12-13T19:59:57","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=13274"},"modified":"2023-12-22T05:45:35","modified_gmt":"2023-12-22T13:45:35","slug":"how-to-retain-dtc-customers","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/how-to-retain-dtc-customers\/","title":{"rendered":"CPG Brands are Using These Strategies to Retain DTC Customers\u00a0\u00a0"},"content":{"rendered":"<p><span data-contrast=\"auto\">It was a big shift in fulfillment strategy when the Dollar Shave Club started shipping single packs of disposable razors direct to consumer doorsteps. Products like that were on your grocery store list or part of a Target run. In the past few years, companies selling\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/fulfillment-food-and-bev\/\"><span data-contrast=\"none\">consumer packaged goods<\/span><\/a><span data-contrast=\"auto\">\u00a0(CPG) began to leverage the direct-to-consumer channel as their biggest growth opportunity.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With the acceleration of ecommerce and online shopping, DTC ecommerce has become the go-to fulfillment method and the biggest way brands are staying competitive in the market.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here are three ways CPG brands can stay competitive in the DTC market.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Quality Fulfillment\u00a0\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The best way you can keep your customers coming back is by getting products to them quickly and accurately.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If your customer orders your sweet and salty granola bar pack, but gets the spicy pack of in the mail,\u00a0<\/span><i><span data-contrast=\"auto\">and\u00a0<\/span><\/i><span data-contrast=\"auto\">they arrive later than expected&#8230; you better bet that customer is going to shop somewhere else next time. But if your customer gets your sweet and salty pack of granola bars before they would otherwise be doing a grocery shopping trip, they will be pleased with the speed of your product and likely come back for more.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cIf you can&#8217;t get your products to the customer in an efficient way\u2014not damaged, sent on time\u2014then it honestly doesn&#8217;t matter. We recognize that there must be a symbiotic relationship between our branding and our fulfillment. What\u2019s most important is that everyone gets the whole picture for the customer.\u201d\u00a0 \u00c9va Goicochea, CEO and Founder of\u00a0maude<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To achieve this, you need more than just great marketing and a great product. You need an expert and experienced fulfillment partner or 3PL. You&#8217;ll want to seek out a 3PL with modern tools and an integrated approach to fulfillment. They should have a proven track record of success with products\u00a0similar to\u00a0yours. The best kind of 3PL support will be a catalyst to help your brand grow and scale without sacrificing any accuracy or customer satisfaction.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Insider tip: Adding a loyalty program or subscription option will not only retain customers, but there\u2019s a high chance it will <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/increase-average-order-value\/\"><span data-contrast=\"none\">increase average order value<\/span><\/a><span data-contrast=\"none\">\u00a0(AOV) as well.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Introduce a Loyalty Program\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">A customer loyalty program is an incentive strategy where customers who purchase or engage with a brand are rewarded in some way. Cash, discounts, free products, are some examples of rewards.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">A few of the most popular types of loyalty programs include:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Points. Let your customers accrue points that correlate to the amount they spend with your brand. Let them redeem points by ordering specific products or getting a discount in their cart.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Tiered Milestones. Allow access to certain rewards (giveaways, exclusive with a celebrity endorser, limited edition products) when customers spend a specific amount of money or buy a certain number of products with your brand.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Membership. Set an annual membership price for VIP customers. Give those who pay the membership special access rewards (first peek at a new product line, early sales discounts).\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">DTC ecommerce brands can easily implement any of these as a short campaign, or long-term strategy.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Loyalty programs work best if the rewards feel obtainable, even if they are a slight stretch to get. No one wants to accumulate points if it seems like it might take years to reap any reward.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">There are many other loyalty program systems, like punch cards (which work better in person) and collaborative programs (which require partnerships with other brands). It\u2019s important to pick the one that fits best with your customers,\u00a0your\u00a0marketing campaigns, and your growth strategy.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Make it a Subscription Service<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">With a subscription, a customer pays a fee at set intervals (monthly, annually) and receives a set amount of products at regular intervals. The main types of subscription models are:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Access: The classic example is news periodicals, with a monthly or yearly subscription, customers have access to a daily, weekly, or monthly news publication. Other examples of access subscriptions are Netflix, Spotify, and Amazon Prime.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Curated: A subscription that has flexibility within the products is called a curated subscription. Some are personalized by the customer, and some are chosen by the subscription seller. A weekly meal kit (different each week), or a monthly box of office snacks (different each month) and both examples of a curated subscription.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Replenishment: This is where CPG brands have a large share of the market. Replenishment subscriptions offer the same products delivered at pre-determined intervals, when the products might be used up. Diapers, pet food, and toothbrushes are all examples.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The ecommerce boom has driven many different verticals to online selling. Because CPG brands sell products that are consumable or disposable, they lend themself to using a subscription model to retain customers.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Benefits of introducing a subscription\u00a0service:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><i><span data-contrast=\"none\">Consistent, predictable order flow and revenue stream<\/span><\/i><span data-contrast=\"none\">. Smaller CPG brands often need to meet a certain order volume to outsource fulfillment to a 3PL. If you are looking to get a consistent bump in your sales volume, try adding a subscription service. You\u2019ll appreciate the regularity of the incoming profits as well.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><i><span data-contrast=\"none\">Get to know your customers better<\/span><\/i><span data-contrast=\"none\">. A subscription model entails a membership. By gathering more information from your customers you\u2019ll have a larger pool of first-party data to use for more targeted marketing efforts.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><i><span data-contrast=\"none\">More loyalty<\/span><\/i><span data-contrast=\"none\">! That\u2019s the name of the game, if you lock in your customers to a regular subscription, you have insurance that they will stay for\u00a0a period of time.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>Bottom Line<\/strong><\/p>\n<p>If your brand is gaining traction in the direc-to-consumer market, and you want to keep your customers engaged, there are proven ways to keep retention numbers up. Be sure to talk to your fulfillment providers before implementing any new strategies. If you partner with an 3PL experienced in CPG fulfillment, they&#8217;ll have a good sense of how to make it work to keep customer satisfaction high.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It was a big shift in fulfillment strategy when the Dollar Shave Club started shipping single packs of disposable razors direct to consumer doorsteps. Products like that were on your grocery store list or part of a Target run. In the past few years, companies selling\u00a0consumer packaged goods\u00a0(CPG) began to leverage the direct-to-consumer channel as [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[20],"tags":[2053],"class_list":["post-13274","post","type-post","status-publish","format-standard","hentry","category-fulfillment","tag-dtc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Retain DTC Customers | Direct-to-consumer Fulfillment | DCL Logistics<\/title>\n<meta name=\"description\" content=\"Direct-to-consumer retention is important for ecommerce companies selling consumer packaged goods. 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A writer and blogging specialist for over 15 years, she helps create quality resources for DCL's innovative customers and many other ecommerce brands looking to optimize their business.","sameAs":["https:\/\/www.linkedin.com\/in\/maureenwalsh\/"],"url":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/author\/maureen\/"}]}},"_links":{"self":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts\/13274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/comments?post=13274"}],"version-history":[{"count":0,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/posts\/13274\/revisions"}],"wp:attachment":[{"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/media?parent=13274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/categories?post=13274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michaeljbrumm.com\/dcl-v3\/wp-json\/wp\/v2\/tags?post=13274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}