Growth on your mind? Here’s how to grow sustainably as a D2C brand


Here’s How To Grow Successfully and  Sustainably As A D2C Brand

D2C brands are becoming increasingly popular among consumers by the day. Although legacy brands still hold domain authority in several sectors, the excitement that D2C brands bring has helped them create their market. The Indian D2C market is expected to grow to USD 54.8 Billion in the coming years. While consumers are still adjusting to the "new normal" after COVID-19, the online shopping trend continues to rise, and D2C brands are in focus.


Some D2C eCommerce brands get more success than others because they are constantly implementing better growth strategies for their business.


Why do you need a growth strategy?


Developing and implementing a D2C-oriented growth strategy for D2C brands can help them grow as brands in the forever-evolving and competitive market. Since D2C brands interact directly with customers, the brand and growth strategy needs to be unique and based on real-time consumer insights.


But for any business to grow steadily and effectively, there needs to be a clear growth strategy. A growth strategy is an understandable roadmap based on awareness and realistic forecasting of how a business is doing today and the steps necessary to achieve the next stage.

A growth strategy helps senior leadership and employees align their priorities to achieve the next milestones. Having a strategy in place also helps you make suitable investments. For example, using the Shoptimize Growth Platform, several D2C brands have observed a 127% increase in conversion rates in just 48 hours.


Factors hindering growth of a D2C brand


Some D2C brands see more success in D2C eCommerce than others. Why? Here are some likely reasons.

  • Too many priorities at the top level.

  • Poor implementation of several growth ideas without any proper integration or collaboration with each other.

  • Misalignment between leaders, teams, and goals of the company.

D2C brands also work on multiple sales channels like an eCommerce store, social media store, eCommerce marketplaces, etc. Here the D2C brands have to align their sales strategy perfectly.


Tips for developing an effective growth strategy


1. Setting goals


How this helps: Serves as a good starting point to decide what investments to make in your growth


The foundation for any growth strategy is to set goals. Once you set the goals for what you want from your D2C brand, it is easy to create a proper roadmap to achieve those goals.


For example, let's say you want to increase the presence and visibility of your D2C brand on the internet. The obvious step is to create a social media presence and then run a promotional campaign across various channels on the internet.


But to increase the brand presence, you will have to set the goals mentioned above within a well-defined timeline and strengthen brand recall.


Create dedicated teams for developing and implementing a growth strategy, set goals for growth, define a timeline and make sure you stay on top of them. Several brands also find that having a singular growth strategy but separate investments into brand marketing and performance marketing, respectively, ensure that the brand can thrive both in the short and long run.


2. Providing next-level customer experience


How this helps: Enhances customer retention and customer loyalty.


There needs to be a customer-centric approach for your D2C eCommerce brand to truly grow. Think of which D2C brand you would love to buy from again and again. Usually, it comes down to a good product, a good delivery experience, and a reasonable amount of communication after you fulfill the order.


These days customers want a deeper connection with their brands as this is an attention economy. Suppose you actively engage with your customer on your site by providing them with a list of recommended products or using past purchases to recommend what they could buy next. This helps brands develop a relationship with customers and increases repeat purchases.


You can also offer subscriptions and loyalty programs for improved customer retention and create a community on social media. This again takes your D2C business beyond sales and truly helps it grow.


While much and more has been said about customer experience, growing D2C brands often find that scaling good customer experience continues to be a challenge.


This is where contextual and relevant insights about your customers come into play. No two customers are alike, but how different are they? And what would be the best way to address their needs? These are some questions that our experts help answer for D2C brands that are part of the Shoptimize Accelerator program, which brings together our proprietary Growth Platform and a team of strategy experts who have successfully scaled D2C brands in the past.


3. Defining key metrics of growth


How this helps: Ensures that your leading metrics align with your projected growth.


Every business model has its metrics of growth. When we talk about D2C eCommerce, these growth metrics would be:

  • Average Order Value

  • Sales Conversion Rate

  • Customer Lifetime Value

  • Repeat Customers %

  • Cart Abandonment Rate

  • Net Promoter Score

  • Average Profit Margin

While these are just some board metrics of growth, you should focus on your parameters. That includes factoring in the type of brand you are, the products or services you sell, the technology you use, etc., to develop both leading and lagging metrics. These metrics should then become the truth for your growth- are you growing as projected? What could potentially stall this growth? What opportunities can you leverage?


4. Identifying growth channels


How this helps: Clears the clutter and allows you to focus on the proper channels.


For any D2C brand, one of the primary sources of revenue is its eCommerce store. It is the online store where the majority of the sales occur. However, that is not the only growth channel for your business.


Marketing channels include search engine optimization, content marketing, email marketing, and social media.


You must identify which channels serve your growth goals and effectively allocate your resources towards them. Once you know which channels bring more sales, you can focus more on them.


As part of the Accelerator Program, D2C brands that work with Shoptimize notice a clear and significant jump in their key growth and retention metrics during the course of their engagement.


Must-have tools for D2C eCommerce growth


To grow your D2C eCommerce business, you have to focus on your online store, and here are some growth tools that will help you in that:

  • Shoptimize Growth Platform: A powerful growth tool that can help you drive better outcomes through performance marketing and organic channels, and boosts conversion rate. The Growth Platform integrates data from all of your sources, including analytics platforms, as accounts, sales channels and more, and gives you a single-pane-of-glass view of your growth.

  • Shopify: Seamlessly create your eCommerce store with many business templates and designs.

  • Ahrefs: A powerful tool for keyword research, link building, and keyword analysis.

  • Buffer: An excellent eCommerce growth tool for brand building on social media.

The Shoptimize Accelerator Program was conceptualized to help brands like yours grow at a pace that makes the most sense for you, and to help you tap into opportunities that were previously out of reach. As the Indian D2C segment continues to emerge and set a new precedent for what is possible in the context of Indian Retail, stand out and make a mark by signing up for the Accelerator Program.