OCTOBER 7, 2021
According to a survey, there are over 800 Direct to Consumer (D2C) brands in India today. Experts estimate that the D2C market opportunity will grow to $100 billion in the next four years! D2C brands are growing not just in traditionally consumer-driven spaces like fashion or electronics, but also across niche products such as premium coffee, craft beer, custom tailoring etc.
One of the primary drivers of D2C growth is its proximity to the customer. From the awareness stage, when the customer first lands on your website or downloads the app, all the way to checkout, D2C brands can track the user journey intricately. They can collect data about where the customer is coming from, what products they’re looking for, what related products are they interested in, how soon they make decisions etc. D2C brands, then, use this visibility to improve user experience on their digital channels.
However, the biggest challenge D2C brands face today is that their visibility ends the moment the customer completes the purchase.
The entire logistics and fulfilment process that happens post-purchase remains in the dark. This means that D2C brands are optimising their business operations based on partial information.
In this blog post, we discuss how logistics analytics can complete the picture for D2C brands. We explore how Delhivery leverages data from the logistics processes offer more comprehensive ways to improve operations.
For D2C brands, fulfilment is a significant cost centre. The money spent in packaging, shipping, delivery and returns management add up over time. As you scale, logistics expenses can grow disproportionately. More often than not, even if you’re using the cheapest parcel delivery, various peripheral factors can bloat your logistics expenses. Especially if you’re tracking your packages manually, through spreadsheets, it will be too late before you even realise that your expenses are going out of hand.
The best way to prevent this is to have complete and granular visibility into your operations.
Our fulfilment centres are managed by our own proprietary solution, collecting data about every step in the process. You can use this information to batch related orders, club similar orders etc. to optimise costs.
Our warehouse management solution offers clear, real-time visibility into your inventory position. You can use this visibility to track your inventory in real-time and even re-route returned products directly to the next destination, instead of your central warehouse.
Moreover, the Delhivery customer dashboard offers clear visibility into your logistics expenses. It shows you in real-time how much you’re spending in packaging, shipping, express shipping, speed parcel service, air courier service, same day/next day delivery, last-mile delivery, warehousing, returns shipping etc. across customer types, geographies and more. Using the dashboard, you can keep an eye on your logistics expenses in real-time, cutting costs and improving efficiencies as you go along.
You might have the world’s best D2C e-commerce website. But if your fulfilment processes are inefficient, the overall customer experience will be less than ideal. So, for up-and-coming D2C brands, it is important that a great user experience stretches beyond your website, right until the delivery of the product at the customer’s doorstep. However, if you use a courier express partner for deliveries, you have no way to know if your customers are happy with your fulfilment until a disgruntled customer complains on Twitter!
As an e-commerce fulfilment company, Delhivery spends a lot of energy solving this problem. With Delhivery’s dashboard, you will have a clear view of customer preferences:
You can find answers to such questions from the logistics data Delhivery offers you and optimise your operations accordingly. For instance, if more of your customers prefer COD, you might want to incentivise prepay. If there is demand for 1-2 of your products in a specific location, you might set up a small warehouse nearby to stock goods there for quicker delivery. If a specific product is being returned more than others, you can send it back for a quality check.
On the other hand, you can integrate Delhivery’s services with your existing order management systems to gain a complete view of customer behaviour. For instance, you can identify specific cohorts of high-value customers and offer loyalty programs. You can use our return-to-origin (RTO) predictors to know in advance which of your orders are likely to be returned. You can use this information to take preventative action such as converting COD orders to prepay, adjusting your returns policy etc.
Traditional brands see order fulfilment as an afterthought — something that has little or no impact on the customer experience. Modern competitive D2C brands understand that fulfilment is everything. The experience that the customer feels while receiving and opening their order can be the difference between a bad Google review or a lifelong loyal customer.
Creating stellar customer experiences for D2C brands depends almost entirely on the logistics partners. We, at Delhivery, make it our mission is to deliver stellar customer experiences for you. With Delhivery, you can take customer data to do a lot more than just optimise their online experience. You can leverage your deeper understanding of the customer to build a truly customer-centric organisation.
To know how Delhivery can help your D2C brand, speak to a consultant today.