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Update your operating model for D2C business

By Fahad Khan
To make their direct-to-consumer strategies successful, consumer brands must devise methods for making their economics work.

Consumers are tired of talking about the COVID-19 pandemic and its impact. But as a business owner and leader, you can’t do the same.

The reason is simple - look at the statistics. Today, India is the birthplace of over 600 direct-to-consumer, i.e., D2C businesses. What does this say about the trend in the business industry? That D2C is a breeding ground for success.

While many companies remain B2B or B2C, making your products or services as accessible as D2C will serve benefits in the long run. If one out of three consumers directly purchased from a manufacturer’s website, would you still not transform your operating model?

Whether you want to enter the D2C market or grow there, GrowthJockey helps you with both. Update your business for digital commerce growth simply by understanding how to upgrade your operating Model.

Read on ahead to know the fundamentals and how to get started on them!

Why Are Businesses Going D2C?

A cartoon image of two women syanding on laptop and mobile icons in a white backgroung containing the text "D2C"

The reasons for adopting a D2C business model are more straightforward than one would think. The rationale is nothing but human nature.

The most obvious reason is to reach consumers and build a relationship with them. This is especially important for businesses that sell regularly used products, such as food or health and beauty products. Beauty products are the beast of the D2C space

Another reason businesses go D2C is to save money. By cutting out the middleman, companies can save on costs and pass those savings on to consumers. This can also lead to higher margins and more profits for businesses.

Finally, D2C also helps businesses build a better customer experience. When companies sell directly to consumers, they have more control over the customer experience. This means they can offer a more personalized experience and ensure that consumers have a positive experience with the brand.

As a start-up, D2C can be overwhelming, given the number of responsibilities on a small team. However, having a dedicated team of consultants who can design a suitable operating model for D2C is all you need.

Here’s How GrowthJockey Helps Digital Commerce

After thorough data collection and situation analysis, our qualified experts will build a research-backed go-to-market strategy for your products and services. If you’re already established in the market, we give you operational and technological consulting for the next level.

Consulting means nothing without execution. We want to give our clients a holistic growth experience at GrowthJockey.

So, your business failure suggests a need for a better customer experience due to outdated methods. In that case, we don’t just identify that but also provide you with the engineering and technological assets, such as AI and chatbots, for your organisational transformation.

Anyway, our philosophy is to let our work speak for us. Head over to Femica India to see what the results of our input look like.

Now, to answer the central question of this post: How can you update your model for D2C? Keep reading as you’ve just reached this piece’s crux!

3 Ways to Transform Your Operating Model to Fit the D2C Model

The rise of Direct-to-Consumer (D2C) commerce has forced companies to re-evaluate their operating models. Many traditional businesses may discover that their old models are no longer fit for purpose in a D2C world.

How can you update your operating model for D2C? Here are three fundamental areas to look at-

1. Go Agile

To maintain a successful D2C business, your company’s operating structure must be agile. This means that your company can rapidly adapt to changes in the market and customer demands.

There are a few key ways to ensure that your company is agile:

  • Define Your Vision

You need a clear and concise vision for your business. This will help you focus your team and resources on the most important goals.

  • Build Self-Organizing Teams

You need to build a team of professionals who are experts in their respective fields. This team should be able to adapt rapidly to changes and be able to work together efficiently.

  • Leverage Digital Transformation

You must recognize the digital mode of operating your business internally. Using product management tools like Asana or Google Suite can help make 92% of your employees more productive.

Adopting the agile methodology is a growing trend today. However, most organizations don’t get it right in the first go. The key is to simplify your system rather than complicate it.

2. Keep Customer Experience at The Core

If you’re considering a D2C model, you’re already halfway there. The D2C model keeps consumers at the forefront of business. So, we know you’re thinking in the right direction.

But customer experience (CX) is beyond just the mode of operation. It includes a symbiotic relationship between your operating units and customer focus.

88% of businesses are winning the race solely because of their exceptional customer experiences. This knowledge is enough to know that ignoring CX is eventually a financial mistake in the long run.

Consider these updates to ensure a positive customer experience for your brand-

  • Innovate your customer service team

A customer service team doesn’t have to consist of humans. Chatbots can save approximately 30% of business costs on customer service. Why not take a look at that?

  • Prioritise UI/UX design

A website is a primary and most frequent way your customers interact with your brand. Vaguely labelled website navigation might have you lose business in seconds.

  • Stay in Touch

D2C shopping isn’t a one-night stand for most consumers. Staying connected with your users through newsletters, push notifications, and email updates help them feel recognized as a valuable customer.

Once a company has paved its way through an agile environment that is customer oriented, the next step seems like a cakewalk.

3. Define with Numbers

Yes, that’s right. The alphabet has 26 letters. But your D2C business model grows when you spell your operations through numbers.

This implies using data in your daily work environment.

D2C businesses must manage many moving parts, from product development and marketing to fulfilment and customer service. And all of these pieces have to work together seamlessly to create a great customer experience.

To do this effectively, D2C businesses need to have a data-driven operating model. This means using data metrics to inform every decision, from product development to marketing to fulfilment.

Hold on. Let us help you understand the above-mentioned fundamentals with our scope of work.

How GrowthJockey Looks at Operational Changes

At GrowthJockey, we operate in an agile manner. There is no wasted potential here. So, we can also assist you in achieving this.

Getting to know your organisation is our first and most crucial step.

The first step to being agile is recognising the gaps and redundancies. Most of the time, the technology you use among your staff may degrade performance or customer experience.

At GrowthJockey, we don’t consult without proof. If we suggest a change in marketing channels, it is because the data metrics indicate so. And if we’re presenting a change in a particular channel, it comes with our ability to equip you with the resources for it.

Here’s a quick look into the GrowthJockey services, using the example of a customer experience team. By staying lean in your organizational practices, your team can achieve more.

If you’re afraid to start by yourself, consider getting a virtual co-founder through us.

To Summarise

As the business world continues to change, so too must the way we operate.

With the rise of direct-to-consumer (D2C) businesses, the traditional model of operating through intermediaries is no longer as effective. To be successful in the D2C space, companies need to adapt their operating models to meet the needs of this new landscape.

At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!

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3rd Floor, GJPL, Time Square Building, Sushant Lok, Gurugram, 120009
Ward No. 06, Prevejabad, Sonpur Nitar Chand Wari, Sonpur, Saran, Bihar, 841101
Shreeji Tower, 3rd Floor, Guwahati, Assam, 781005
25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US