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Running a direct-to-consumer (DTC) brand takes immense dedication and responsibility. By avoiding the middleman of business, DTC brands work directly with the customer. By putting their focus solely on the customer, they are able to provide excellent service and better customer experience. Whether the brand has been around for years or is a budding new startup, it’s imperative for a DTC to pass the test of the following requirements:

Funding for a growing DTC business with strong unit economics

To get a DTC business started and to keep it growing, the company requires the right kind of funding. Venture capital is now branching out to more DTC brands. When finding funding with strong unit economics for your capital, it’s important to stand out from all the other brands. You must determine what makes your DTC company unique and why your brand is worth funding. There are many other DTC brands seeking the same capital, which means you have to stand out against the competition.

Preparing for international shipping

As DTC brands become more popular with consumers, the demand for them is growing worldwide. In order to complete international orders and accommodate customers overseas, it’s important to be prepared. Although the demand is high, most DTC brands do not ship internationally. This is mostly due to the costs and the complexity that comes with shipping products internationally. For companies based in the United States, the market is big enough to grow into without feeling capped. To keep your DTC brand growing and advancing, you must prepare for international shipping.

Collecting customer cohort data

As a DTC brand, your business is your customers. In order to keep your business moving efficiently and effectively, it is important you have a system to track detailed customer cohort data. You must be collecting and reviewing the customer cohort data on a weekly basis. There are certain important metrics to always keep track of as well. This includes spending on advertisements, retention or repeat purchase rate, rolling LVT estimates, paid CAC, customer count, average order value (AOV), and much more. Tracking these will serve as a vital tool for unit economics  and scaling customer acquisitions.

Interventions for unhappy or disgruntled customers

Try as hard as you might, there will always be an unhappy customer. How you handle unhappy customers in your business will help decide the success of your DTC brand. It’s important to be prepared for returns and how to intervene. Although your business should factor in the rates of return to avoid churn, you must have a plan to ensure customer satisfaction and avoid returns. This can be done by having a member of the customer service team reach out to the customer