JUNE 23, 2022
Consumers continue to shift their buying habits from traditional retail to online channels. In this situation, direct-to-consumer (D2C) brands are trying to capture market share by acquiring and retaining consumers. But, consumer acquisition costs (CAC) are high, and therefore, it is increasingly important for D2C brands to build trust and retain their consumers.
D2C brands face challenges, such as managing multiple logistics and technology partners, pressure to provide fast delivery, and managing returns/replacements. Getting any of these wrong erodes trust – consumers churn. D2C brands can address these challenges and build trust; driving loyalty and retention.
Here are three concrete ways through which you can do it:
Consumer trust is built through transparency, and a vital component to achieving it is the pre-checkout experience. It sets the tone for the rest of the consumer journey. It can make or break a sale. Make sure your consumers can quickly navigate your website, choose their required products, and then easily pay for the items. You should provide a pre-checkout experience that is transparent, concise, and easy to follow.
In addition, you must be clear and upfront about your shipping policies. Provide a dedicated page on your website that outlines everything from shipping times to return policies. Consumers should be able to find this information easily and it should be presented in a way that is easy to understand.
Here are a few more ways you can offer transparency to your consumers:
Offering this level of transparency requires a robust warehouse and integrated inventory management system. This system should be able to track your product inventory levels across all sales channels, and all locations, and shipping timelines. It should also be able to generate reports and send notifications to consumers.
Consumer expectations have gotten more stringent. They expect faster deliveries and exactly when it was promised. Fast and reliable delivery is no longer a nice-to-have – it’s a must-have. So firstly, it’s important to choose a shipping partner that provides fast and reliable delivery.
Secondly, it is extremely frustrating to have your product delivered to the wrong location. The hassle of resolving the confusion, and the increased re-order to deliver timelines are likely to impact brand loyalty. Hence, it’s critical to have a shipping partner that has tools and processes which will accurately deliver the order.
Thirdly, the challenge of order returns and replacements is one that affects all businesses, big and small. It is an unavoidable reality that some orders will need to be returned or replaced. Thus, look for a shipping partner that can efficiently handle returns/replacements with the lowest possible costs.
At Delhivery, we try to differentiate our services through speed, reliability, and coverage. Over the last 11 years, having worked with e-tailers, marketplaces, D2C brands, and enterprises, we have built our capabilities in line with the market demand. For example, our value-added services, such as Return-Quality Check (RVP-QC), Address fix (ADFIX), and 1.5 billion shipments-based RTO predictor significantly improve our ability to deliver the right shipment at the promised time.
Additionally, we offer the full suite of logistics solutions – warehousing, international shipping, and part truck load. These solutions can be integrated, which would significantly reduce your management bandwidth and costs.